Braskem (NYSE:BAK) Shares Gap Down Following Analyst Downgrade

Shares of Braskem S.A. (NYSE:BAK) gapped down before the market opened on Thursday after Bank of America downgraded the stock from a neutral rating to an underperform rating. The stock had previously closed at $4.24, but opened at $3.97. Bank of America now has a $2.80 price target on the stock. Braskem shares last traded at $4.0550, with a volume of 890,624 shares.

Several other research analysts also recently commented on the company. Citigroup downgraded Braskem from a “hold” rating to a “sell” rating in a research note on Monday, February 16th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Braskem in a report on Wednesday, January 21st. Finally, Zacks Research cut shares of Braskem from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 19th. Three analysts have rated the stock with a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Strong Sell” and a consensus price target of $3.87.

Hedge Funds Weigh In On Braskem

A number of institutional investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC raised its holdings in shares of Braskem by 444.4% in the 4th quarter. EverSource Wealth Advisors LLC now owns 8,579 shares of the company’s stock valued at $25,000 after acquiring an additional 7,003 shares in the last quarter. Ballentine Partners LLC purchased a new position in shares of Braskem during the third quarter worth about $34,000. Quadrant Capital Group LLC increased its position in shares of Braskem by 222.1% in the fourth quarter. Quadrant Capital Group LLC now owns 12,809 shares of the company’s stock worth $38,000 after purchasing an additional 8,832 shares during the last quarter. Signaturefd LLC raised its stake in Braskem by 50.1% in the fourth quarter. Signaturefd LLC now owns 13,524 shares of the company’s stock valued at $40,000 after purchasing an additional 4,513 shares in the last quarter. Finally, Evergreen Capital Management LLC purchased a new stake in Braskem in the fourth quarter valued at approximately $44,000.

Braskem Stock Down 5.1%

The firm has a market capitalization of $1.60 billion, a P/E ratio of -1.76 and a beta of 1.84. The firm’s 50-day simple moving average is $3.92 and its 200-day simple moving average is $3.22.

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.