Braskem (NYSE:BAK) Shares Down 11.7% – Should You Sell?

Braskem S.A. (NYSE:BAK)’s share price fell 11.7% on Thursday . The stock traded as low as $3.37 and last traded at $3.7950. 3,608,204 shares were traded during mid-day trading, an increase of 118% from the average session volume of 1,657,489 shares. The stock had previously closed at $4.30.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Zacks Research cut shares of Braskem from a “strong-buy” rating to a “hold” rating in a report on Monday, January 19th. Weiss Ratings reissued a “sell (e+)” rating on shares of Braskem in a research report on Wednesday, January 21st. Finally, Santander lowered Braskem from a “neutral” rating to an “underperform” rating in a research report on Thursday, October 16th. Five analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and an average price target of $4.40.

Braskem Price Performance

The stock has a market capitalization of $1.49 billion, a P/E ratio of -1.64 and a beta of 1.89. The stock’s fifty day moving average is $3.19 and its 200-day moving average is $3.01.

Braskem (NYSE:BAK) last announced its quarterly earnings results on Wednesday, November 12th. The company reported ($0.02) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.48) by $0.46. The company had revenue of $3.25 billion during the quarter, compared to analyst estimates of $3.23 billion. On average, research analysts expect that Braskem S.A. will post -0.77 EPS for the current year.

Hedge Funds Weigh In On Braskem

A number of institutional investors have recently modified their holdings of BAK. EverSource Wealth Advisors LLC lifted its stake in shares of Braskem by 444.4% in the fourth quarter. EverSource Wealth Advisors LLC now owns 8,579 shares of the company’s stock worth $25,000 after buying an additional 7,003 shares during the last quarter. Signaturefd LLC raised its holdings in Braskem by 50.1% in the 4th quarter. Signaturefd LLC now owns 13,524 shares of the company’s stock worth $40,000 after acquiring an additional 4,513 shares during the period. Ballentine Partners LLC acquired a new position in Braskem during the 3rd quarter worth $34,000. Evergreen Capital Management LLC bought a new stake in Braskem during the fourth quarter valued at about $44,000. Finally, Brevan Howard Capital Management LP bought a new position in shares of Braskem in the third quarter worth about $64,000.

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.