Braskem (NYSE:BAK) Sees Strong Trading Volume – Should You Buy?

Shares of Braskem S.A. (NYSE:BAK) saw unusually-high trading volume on Tuesday. 2,491,216 shares changed hands during trading, an increase of 6% from the previous session’s volume of 2,349,089 shares. The stock last traded at $1.8250 and had previously closed at $1.78.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Citigroup downgraded shares of Braskem from a “neutral” rating to a “sell” rating in a 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. HSBC lowered shares of Braskem from a “buy” rating to a “hold” rating and cut their price objective for the company from $6.50 to $1.50 in a research report on Monday, September 28th. UBS Group lowered shares of 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. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Braskem in a research note on Friday, July 17th. Three analysts have rated the stock with a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat.com, Braskem currently has a consensus rating of “Strong Sell” and an average price target of $2.56.

Braskem Price Performance

The business has a 50 day moving average of $1.83 and a 200 day moving average of $2.84. The firm has a market capitalization of $731.44 million, a price-to-earnings ratio of -0.76, a price-to-earnings-growth ratio of 0.11 and a beta of 1.56.

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

Hedge Funds Weigh In On Braskem

Hedge funds and other institutional investors have recently made changes to their positions in the business. Brooklands Fund Management Ltd acquired a new stake in shares of Braskem during the 1st quarter valued at about $2,013,000. SmartHarvest Portfolios LLC increased its stake in Braskem by 49.7% in the first quarter. SmartHarvest Portfolios LLC now owns 54,466 shares of the company’s stock valued at $199,000 after acquiring an additional 18,085 shares during the period. Bank of America Corp DE raised its position in Braskem by 178,471.4% in the first quarter. Bank of America Corp DE now owns 50,000 shares of the company’s stock worth $183,000 after purchasing an additional 49,972 shares in the last quarter. Engineers Gate Manager LP raised its position in Braskem by 192.8% in the second quarter. Engineers Gate Manager LP now owns 68,198 shares of the company’s stock worth $166,000 after purchasing an additional 44,905 shares in the last quarter. Finally, Private Advisor Group LLC acquired a new position in Braskem in the first quarter worth about $157,000.

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.