Braskem (NYSE:BAK) Shares Gap Up – Time to Buy?

Braskem S.A. (NYSE:BAK) gapped up prior to trading on Wednesday . The stock had previously closed at $2.79, but opened at $2.94. Braskem shares last traded at $3.0060, with a volume of 353,917 shares trading hands.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on BAK shares. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Braskem in a report on Wednesday, October 8th. Citigroup lowered shares of Braskem from a “buy” rating to a “hold” rating in a research report on Friday, October 10th. Santander cut shares of Braskem from a “neutral” rating to an “underperform” rating in a research note on Thursday, October 16th. Zacks Research lowered shares of Braskem from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 30th. Finally, JPMorgan Chase & Co. lowered their target price on Braskem from $6.00 to $5.00 and set a “neutral” rating on the stock in a report on Wednesday, August 27th. Five equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus target price of $4.40.

Braskem Stock Up 8.4%

The stock has a market capitalization of $1.21 billion, a price-to-earnings ratio of -1.33 and a beta of 1.89. The company’s 50-day moving average is $2.76 and its 200-day moving average is $3.04.

Braskem (NYSE:BAK) last posted its earnings results on Wednesday, November 12th. The company reported ($0.02) earnings per share for the quarter, beating the consensus estimate of ($0.48) by $0.46. The firm had revenue of $3.25 billion during the quarter, compared to analyst estimates of $3.23 billion. Sell-side analysts anticipate that Braskem S.A. will post -0.77 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Ballentine Partners LLC purchased a new stake in Braskem in the third quarter valued at $34,000. Brevan Howard Capital Management LP purchased a new position in shares of Braskem during the 3rd quarter worth $64,000. Dark Forest Capital Management LP increased its position in shares of Braskem by 94.7% during the 3rd quarter. Dark Forest Capital Management LP now owns 32,127 shares of the company’s stock worth $78,000 after purchasing an additional 15,630 shares during the last quarter. Jump Financial LLC raised its holdings in Braskem by 114.4% in the 1st 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 period. Finally, Centric Wealth Management purchased a new stake in Braskem in the 2nd quarter valued at about $128,000.

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.