Braskem (NYSE:BAK) Trading Up 10% - Time to Buy?

Key Points

• Braskem shares rose 10% to $1.815 in midday trading, although volume was 86% below the stock’s average daily volume.
• Analyst sentiment remains strongly negative: the consensus rating is “Strong Sell”, with five Sell ratings and three Holds. The average price target of $3.40 is above the current price, but several firms recently downgraded the stock.
• Braskem reported $4.20 billion in quarterly revenue and $1.61 EPS, but continues to show financial weakness, including a negative net margin of 7.28% and negative return on equity of 67.75%.

Braskem S.A. (NYSE:BAK - Get Free Report) shares were up 10% on Wednesday . The company traded as high as $1.79 and last traded at $1.8150. 330,959 shares traded hands during mid-day trading, a decline of 86% from the average daily volume of 2,433,741 shares. The stock had previously closed at $1.65.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. Weiss Ratings reissued a "sell (e+)" rating on shares of Braskem in a research note on Friday, July 17th. JPMorgan Chase & Co. cut shares of Braskem from an "overweight" rating to a "neutral" rating in a research note on Tuesday, June 30th. Citigroup downgraded shares of Braskem from a "neutral" rating to a "sell" rating in a report on Thursday, June 25th. Finally, Zacks Research lowered Braskem from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 18th. Three investment analysts have rated the stock with a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Strong Sell" and an average price target of $3.40.

Braskem Stock Up 16.7%

The stock's 50 day moving average is $2.26 and its 200-day moving average is $3.36. The company has a market cap of $767.31 million, a PE ratio of -0.79, a P/E/G ratio of 0.10 and a beta of 1.62.

Braskem (NYSE:BAK - Get Free Report) last issued its quarterly earnings data on Friday, June 26th. The company reported $1.61 EPS for the quarter. The business had revenue of $4.20 billion during the quarter. Braskem had a negative net margin of 7.28% and a negative return on equity of 67.75%. On average, analysts anticipate that Braskem S.A. will post 1.58 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of BAK. Jump Financial LLC increased its position in Braskem by 607.1% during the second quarter. Jump Financial LLC now owns 263,771 shares of the company's stock valued at $865,000 after acquiring an additional 226,467 shares during the last quarter. Jane Street Group LLC lifted its holdings in shares of Braskem by 130.3% in the 2nd quarter. Jane Street Group LLC now owns 49,301 shares of the company's stock worth $162,000 after acquiring an additional 27,891 shares during the last quarter. Van ECK Associates Corp bought a new stake in shares of Braskem in the 3rd quarter worth about $117,000. UBS Group AG boosted its stake in shares of Braskem by 2.6% during the 3rd quarter. UBS Group AG now owns 783,445 shares of the company's stock worth $1,896,000 after purchasing an additional 19,956 shares during the period. Finally, Virtu Financial LLC boosted its stake in shares of Braskem by 28.7% during the 3rd quarter. Virtu Financial LLC now owns 44,587 shares of the company's stock worth $108,000 after purchasing an additional 9,938 shares during the period.

Braskem Company Profile

Braskem NYSE: BAK is a leading integrated petrochemical company based in São Paulo, Brazil, and holds the distinction of being the largest thermoplastic resins producer in Latin America. The company operates across the entire value chain, from feedstock sourcing and polymer production to distribution and recycling. Braskem's comprehensive approach to petrochemical manufacturing enables it to serve a diverse set of end markets with a broad portfolio of products.

Braskem's core product lines include polypropylene, polyethylene and polyvinyl chloride (PVC), which are used in industries such as packaging, automotive, construction and electrical & electronics.

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