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

Shares of Braskem S.A. (NYSE:BAK) gapped down before the market opened on Friday . The stock had previously closed at $3.08, but opened at $2.85. Braskem shares last traded at $2.9150, with a volume of 287,715 shares.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on BAK. Zacks Research cut Braskem from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 30th. UBS Group cut shares of Braskem from a “buy” rating to a “neutral” rating and decreased their price objective for the company from $5.10 to $3.80 in a research report on Friday, September 26th. Santander cut shares of Braskem from a “neutral” rating to an “underperform” rating in a report on Thursday, October 16th. Citigroup downgraded Braskem from a “buy” rating to a “hold” rating in a research note on Friday, October 10th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Braskem in a report on Wednesday, October 8th. Five research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Braskem has an average rating of “Reduce” and a consensus price target of $4.40.

Braskem Stock Down 5.2%

The stock’s 50-day moving average is $2.79 and its 200-day moving average is $3.04. The firm has a market cap of $1.16 billion, a P/E ratio of -1.28 and a beta of 1.89.

Braskem (NYSE:BAK) last announced its quarterly earnings results on Wednesday, November 12th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.48) by $0.46. The business had revenue of $3.25 billion during the quarter, compared to the consensus estimate of $3.23 billion. As a group, analysts expect that Braskem S.A. will post -0.77 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Virtu Financial LLC raised its holdings in Braskem by 28.7% during the 3rd quarter. Virtu Financial LLC now owns 44,587 shares of the company’s stock worth $108,000 after purchasing an additional 9,938 shares during the last quarter. American Century Companies Inc. grew its holdings in shares of Braskem by 12.6% during the first quarter. American Century Companies Inc. now owns 110,035 shares of the company’s stock worth $424,000 after buying an additional 12,300 shares in the last quarter. Ballentine Partners LLC acquired a new position in Braskem during the third quarter valued at approximately $34,000. Dark Forest Capital Management LP grew its position in shares of Braskem by 94.7% in the 3rd quarter. Dark Forest Capital Management LP now owns 32,127 shares of the company’s stock valued at $78,000 after acquiring an additional 15,630 shares during the period. Finally, Jump Financial LLC lifted its position in shares of Braskem by 114.4% in the first quarter. Jump Financial LLC now owns 37,304 shares of the company’s stock valued at $144,000 after buying an additional 19,904 shares during the last quarter.

Braskem Company Profile

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.