Braskem (NYSE:BAK) Shares Gap Down – Here’s What Happened

Braskem S.A. (NYSE:BAK) shares gapped down before the market opened on Wednesday. The stock had previously closed at $1.87, but opened at $1.78. Braskem shares last traded at $1.8330, with a volume of 274,589 shares.

Wall Street Analyst Weigh In

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

Braskem Price Performance

The company has a market capitalization of $723.46 million, a P/E ratio of -0.75, a price-to-earnings-growth ratio of 0.11 and a beta of 1.56. The firm has a fifty day moving average price of $1.84 and a 200-day moving average price of $2.86.

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

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Brooklands Fund Management Ltd bought a new stake in shares of Braskem during the 1st quarter worth $2,013,000. Engineers Gate Manager LP boosted its holdings in shares of Braskem by 192.8% in the 2nd quarter. Engineers Gate Manager LP now owns 68,198 shares of the company’s stock worth $166,000 after buying an additional 44,905 shares during the last quarter. Citadel Advisors LLC purchased a new position in shares of Braskem in the 2nd quarter worth about $89,000. Ramsey Quantitative Systems bought a new position in Braskem during the second quarter valued at about $155,000. Finally, Bank of America Corp DE grew its position in Braskem by 178,471.4% during the first quarter. Bank of America Corp DE now owns 50,000 shares of the company’s stock valued at $183,000 after buying an additional 49,972 shares during the period.

Braskem Company Profile

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.