Braskem (NYSE:BAK) Stock Price Down 8.3% – Here’s Why

Shares of Braskem S.A. (NYSE:BAK) traded down 8.3% on Tuesday . The stock traded as low as $3.52 and last traded at $3.42. 340,651 shares traded hands during trading, a decline of 86% from the average session volume of 2,402,698 shares. The stock had previously closed at $3.73.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Braskem in a research note on Monday, April 20th. Citigroup raised shares of Braskem from a “strong sell” rating to a “hold” rating in a research note on Wednesday, April 1st. Bank of America lowered shares of Braskem from a “neutral” rating to an “underperform” rating and set a $2.80 target price for the company. in a research note on Thursday, March 26th. Bradesco Corretora lowered shares of Braskem from an “outperform” rating to an “underperform” rating and set a $1.50 target price for the company. in a research note on Tuesday, April 21st. Finally, Zacks Research lowered shares of Braskem from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 18th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and an average target price of $3.40.

Braskem Price Performance

The company’s 50 day moving average price is $3.98 and its 200 day moving average price is $3.69. The firm has a market cap of $1.33 billion, a PE ratio of -0.79, a price-to-earnings-growth ratio of 0.07 and a beta of 1.57.

Braskem (NYSE:BAK) last posted its quarterly earnings data on Thursday, May 14th. The company reported $0.69 EPS for the quarter, beating the consensus estimate of $0.21 by $0.48. Braskem had a negative net margin of 13.72% and a negative return on equity of 23.17%. The business had revenue of $3.51 billion during the quarter, compared to analyst estimates of $3.39 billion. Sell-side analysts expect that Braskem S.A. will post 3.15 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in BAK. Jump Financial LLC boosted its stake in shares of Braskem by 607.1% in the second quarter. Jump Financial LLC now owns 263,771 shares of the company’s stock valued at $865,000 after purchasing an additional 226,467 shares during the period. Jane Street Group LLC boosted its stake in shares of Braskem by 130.3% in the second quarter. Jane Street Group LLC now owns 49,301 shares of the company’s stock valued at $162,000 after purchasing an additional 27,891 shares during the period. Van ECK Associates Corp purchased a new position in shares of Braskem in the third quarter valued at approximately $117,000. UBS Group AG boosted its stake in shares of Braskem by 2.6% in the third 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 during the period. Finally, Virtu Financial LLC boosted its stake in shares of Braskem by 28.7% in the third quarter. Virtu Financial LLC now owns 44,587 shares of the company’s stock valued at $108,000 after purchasing an additional 9,938 shares during the period.

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.