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

Braskem S.A. (NYSE:BAK) shares 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 trading hands.

Wall Street Analysts Forecast Growth

BAK has been the subject of a number of recent analyst reports. HSBC downgraded Braskem from a “buy” rating to a “hold” rating and decreased their target price for the company from $6.50 to $1.50 in a report on Monday, September 28th. UBS Group downgraded shares of Braskem from a “neutral” rating to a “sell” rating and reduced their price objective for the company from $4.00 to $1.50 in a research report on Tuesday, September 15th. JPMorgan Chase & Co. lowered shares of Braskem from an “overweight” rating to a “neutral” rating in a report on Tuesday, June 30th. Citigroup cut shares of Braskem from a “neutral” rating to a “sell” rating in a research report on Thursday, June 25th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Braskem in a research note on Friday, July 17th. Three research analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Strong Sell” and a consensus price target of $2.56.

Braskem Stock Up 4.8%

The company has a market capitalization of $739.40 million, a P/E ratio of -0.76, a price-to-earnings-growth ratio of 0.10 and a beta of 1.56. The company has a 50-day moving average of $1.88 and a two-hundred day moving average of $2.92.

Braskem (NYSE:BAK) last posted 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 during the quarter. Braskem had a negative return on equity of 67.75% and a negative net margin of 7.28%. As a group, equities analysts expect that Braskem S.A. will post 1.58 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Engineers Gate Manager LP boosted its stake in Braskem by 192.8% during the second quarter. Engineers Gate Manager LP now owns 68,198 shares of the company’s stock worth $166,000 after acquiring an additional 44,905 shares in the last quarter. Citadel Advisors LLC purchased a new stake in Braskem in the second quarter worth about $89,000. Ramsey Quantitative Systems bought a new position in shares of Braskem during the second quarter valued at approximately $155,000. Bank of America Corp DE increased its stake in shares of 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 purchasing an additional 49,972 shares in the last quarter. Finally, Brooklands Fund Management Ltd purchased a new position in shares of Braskem during the first quarter valued at approximately $2,013,000.

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.