Braskem S.A. (NYSE:BAK) Sees Significant Growth in Short Interest

Braskem S.A. (NYSE:BAK) was the target of a large increase in short interest in the month of December. As of December 31st, there was short interest totaling 3,320,975 shares, an increase of 39.6% from the December 15th total of 2,379,325 shares. Approximately 0.8% of the shares of the company are sold short. Based on an average daily volume of 864,416 shares, the days-to-cover ratio is presently 3.8 days. Based on an average daily volume of 864,416 shares, the days-to-cover ratio is presently 3.8 days. Approximately 0.8% of the shares of the company are sold short.

Braskem Trading Down 6.6%

BAK traded down $0.22 during trading on Friday, hitting $3.09. 1,728,613 shares of the company traded hands, compared to its average volume of 989,381. The company has a market cap of $1.32 billion, a PE ratio of -1.36 and a beta of 1.88. Braskem has a 1 year low of $2.32 and a 1 year high of $5.10. The stock’s 50-day simple moving average is $2.95 and its two-hundred day simple moving average is $2.99.

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

Wall Street Analyst Weigh In

BAK has been the topic of a number of research reports. Santander downgraded shares of Braskem from a “neutral” rating to an “underperform” rating in a report on Thursday, October 16th. Citigroup cut shares of Braskem from a “buy” rating to a “hold” rating in a research note on Friday, October 10th. Weiss Ratings restated a “sell (e+)” rating on shares of Braskem in a research note on Wednesday, October 8th. UBS Group cut Braskem from a “buy” rating to a “neutral” rating and decreased their target price for the stock from $5.10 to $3.80 in a report on Friday, September 26th. Finally, Zacks Research raised Braskem from a “hold” rating to a “strong-buy” rating in a report on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $4.40.

Institutional Trading of Braskem

Several institutional investors and hedge funds have recently modified their holdings of the stock. UBS Group AG raised its position in Braskem by 2.6% during the 3rd quarter. UBS Group AG now owns 783,445 shares of the company’s stock valued at $1,896,000 after purchasing an additional 19,956 shares in the last quarter. Jump Financial LLC grew its holdings in Braskem by 607.1% during the 2nd quarter. Jump Financial LLC now owns 263,771 shares of the company’s stock worth $865,000 after acquiring an additional 226,467 shares in the last quarter. Creative Planning boosted its position in Braskem by 145.0% during the 3rd quarter. Creative Planning now owns 56,790 shares of the company’s stock valued at $137,000 after acquiring an additional 33,614 shares in the last quarter. Jane Street Group LLC lifted its position in shares of Braskem by 130.3% during the second quarter. Jane Street Group LLC now owns 49,301 shares of the company’s stock valued at $162,000 after buying an additional 27,891 shares during the last quarter. Finally, Van ECK Associates Corp bought a new stake in shares of Braskem in the 3rd quarter valued at about $117,000.

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.