Braskem (NYSE:BAK) Shares Gap Up – Time to Buy?

Braskem S.A. (NYSE:BAK) gapped up before the market opened on Wednesday . The stock had previously closed at $1.92, but opened at $2.01. Braskem shares last traded at $1.9960, with a volume of 83,857 shares changing hands.

Analyst Upgrades and Downgrades

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

Braskem Price Performance

The stock has a market capitalization of $799.19 million, a P/E ratio of -0.83, a PEG ratio of 0.11 and a beta of 1.56. The stock has a 50 day moving average price of $2.19 and a 200-day moving average price of $3.30.

Braskem (NYSE:BAK) last released its earnings results on Friday, June 26th. The company reported $1.61 earnings per share for the quarter. The company had revenue of $4.20 billion during the quarter. Braskem had a negative return on equity of 67.75% and a negative net margin of 7.28%. Research analysts predict that Braskem S.A. will post 1.58 earnings per share for the current fiscal year.

Institutional Trading of Braskem

A number of institutional investors have recently made changes to their positions in BAK. Brooklands Fund Management Ltd bought a new position in shares of Braskem in the first quarter worth approximately $2,013,000. Renaissance Technologies LLC raised its holdings in Braskem by 619.5% during the 4th quarter. Renaissance Technologies LLC now owns 265,488 shares of the company’s stock valued at $783,000 after buying an additional 228,588 shares during the last quarter. Jump Financial LLC raised its holdings in Braskem by 607.1% during the 2nd quarter. Jump Financial LLC now owns 263,771 shares of the company’s stock valued at $865,000 after buying an additional 226,467 shares during the last quarter. Marshall Wace LLP purchased a new stake in Braskem during the 4th quarter valued at $477,000. Finally, Jane Street Group LLC boosted its position in Braskem by 193.6% during the 4th quarter. Jane Street Group LLC now owns 220,898 shares of the company’s stock valued at $652,000 after buying an additional 145,655 shares during the period.

About Braskem

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.