Braskem (NYSE:BAK) Stock Price Down 5% – Here’s Why

Braskem S.A. (NYSE:BAK) traded down 5% during trading on Tuesday. The stock traded as low as $1.4150 and last traded at $1.4150. 804,207 shares traded hands during mid-day trading, a decline of 66% from the average daily volume of 2,368,142 shares. The stock had previously closed at $1.49.

Analyst Ratings Changes

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

Braskem Stock Up 2.5%

The stock has a market cap of $579.96 million, a price-to-earnings ratio of -0.60, a price-to-earnings-growth ratio of 0.08 and a beta of 1.56. The firm’s 50 day moving average is $1.96 and its two-hundred day moving average is $3.02.

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

Hedge Funds Weigh In On Braskem

Several hedge funds have recently made changes to their positions in the business. Brooklands Fund Management Ltd acquired a new position in Braskem during the first quarter valued at $2,013,000. X Square Capital LLC boosted its holdings in shares of Braskem by 117.6% during the fourth quarter. X Square Capital LLC now owns 185,000 shares of the company’s stock worth $546,000 after purchasing an additional 100,000 shares during the period. Ramsey Quantitative Systems acquired a new position in Braskem in the 2nd quarter valued at approximately $155,000. Bank of America Corp DE lifted its position 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 worth $183,000 after buying an additional 49,972 shares in the last quarter. Finally, Engineers Gate Manager LP boosted its stake in shares of Braskem by 192.8% during the 2nd quarter. Engineers Gate Manager LP now owns 68,198 shares of the company’s stock valued at $166,000 after buying an additional 44,905 shares during the period.

Braskem Company Profile

Braskem SA is a Brazilian petrochemical company headquartered in São Paulo. Established in 2002 through the combination of Odebrecht Química and the petrochemical company Copene, Braskem has developed into one of Latin America’s major producers of thermoplastic resins and basic petrochemicals.

The company manufactures polyethylene, polypropylene and polyvinyl chloride (PVC), which are used in packaging, construction, automotive components, consumer goods and other industrial applications.