Braskem (NYSE:BAK) Shares Gap Down – Should You Sell?

Braskem S.A. (NYSE:BAK)’s share price gapped down before the market opened on Thursday. The stock had previously closed at $1.77, but opened at $1.68. Braskem shares last traded at $1.8250, with a volume of 751,963 shares traded.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on BAK. Citigroup lowered shares of Braskem from a “neutral” rating to a “sell” rating in a research report on Thursday, June 25th. JPMorgan Chase & Co. downgraded shares of Braskem from an “overweight” rating to a “neutral” rating in a report on Tuesday, June 30th. UBS Group lowered shares of Braskem from a “neutral” rating to a “sell” rating and lowered their target price for the company from $4.00 to $1.50 in a research note on Tuesday, September 15th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Braskem in a report on Friday, July 17th. Finally, HSBC lowered shares of Braskem from a “buy” rating to a “hold” rating and cut their target price for the stock from $6.50 to $1.50 in a research report on Monday, September 28th. Three analysts have rated the stock with a Hold rating and six have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Strong Sell” and a consensus target price of $2.56.

Braskem Price Performance

The company has a market capitalization of $723.46 million, a price-to-earnings ratio of -0.75, a price-to-earnings-growth ratio of 0.11 and a beta of 1.56. The business has a fifty day moving average price of $1.86 and a 200 day moving average price of $2.90.

Braskem (NYSE:BAK) last announced its quarterly earnings data on Friday, June 26th. The company reported $1.61 earnings per share (EPS) for the quarter. The business had revenue of $4.20 billion for the quarter. Braskem had a negative net margin of 7.28% and a negative return on equity of 67.75%. As a group, sell-side analysts predict that Braskem S.A. will post 1.58 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in BAK. Cetera Investment Advisers bought a new stake in shares of Braskem in the first quarter valued at about $51,000. Citadel Advisors LLC bought a new position in Braskem during the second quarter valued at about $89,000. Private Advisor Group LLC acquired a new position in Braskem in the 1st quarter valued at approximately $157,000. Bank of America Corp DE raised its holdings in Braskem by 178,471.4% in the 1st quarter. Bank of America Corp DE now owns 50,000 shares of the company’s stock valued at $183,000 after acquiring an additional 49,972 shares in the last quarter. Finally, SmartHarvest Portfolios LLC lifted its position in shares of Braskem by 49.7% in the 1st quarter. SmartHarvest Portfolios LLC now owns 54,466 shares of the company’s stock worth $199,000 after acquiring an additional 18,085 shares during the period.

About Braskem

Braskem SA is a Brazilian petrochemical company headquartered in São Paulo, Brazil. The company produces basic chemicals and thermoplastic resins used in packaging, construction, automotive components, consumer goods, agriculture, and other industrial applications.

Its product portfolio includes olefins such as ethylene and propylene, polyolefins including polyethylene and polypropylene, polyvinyl chloride (PVC), caustic soda, and other chemical intermediates. Braskem also markets renewable polyethylene under the “I’m green” brand, which is made from sugarcane-based ethanol.

Established in 2002 through the consolidation of petrochemical assets in Brazil, Braskem expanded internationally through subsequent acquisitions and investments.