Braskem (NYSE:BAK) Hits New 52-Week Low – Time to Sell?

Shares of Braskem S.A. (NYSE:BAK) reached a new 52-week low during mid-day trading on Monday. The stock traded as low as $0.92 and last traded at $1.0950, with a volume of 16,428,477 shares. The stock had previously closed at $1.70.

Wall Street Analysts Forecast Growth

BAK has been the subject of several recent research reports. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Braskem in a research report on Thursday, October 15th. JPMorgan Chase & Co. downgraded Braskem from an “overweight” rating to a “neutral” rating in a research note on Tuesday, June 30th. Wall Street Zen upgraded shares of Braskem to a “hold” rating in a research report on Saturday, October 17th. UBS Group cut Braskem from a “neutral” rating to a “sell” rating and lowered their target price for the company from $4.00 to $1.50 in a research report on Tuesday, September 15th. Finally, HSBC cut shares of Braskem from a “buy” rating to a “hold” rating and lowered their target price for the company from $6.50 to $1.50 in a research note on Monday, September 28th. Three research analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Strong Sell” and a consensus price target of $2.56.

Braskem Price Performance

The firm’s fifty day moving average is $1.74 and its 200 day moving average is $3.05. The firm has a market capitalization of $476.33 million, a price-to-earnings ratio of -0.49, a PEG ratio of 0.10 and a beta of 1.56.

Braskem (NYSE:BAK) last posted its quarterly earnings results on Friday, June 26th. The company reported $1.61 earnings per share for the quarter. Braskem had a negative net margin of 7.28% and a negative return on equity of 67.75%. The business had revenue of $4.20 billion for the quarter. Equities research analysts forecast that Braskem S.A. will post 1.58 EPS for the current fiscal year.

Hedge Funds Weigh In On Braskem

Hedge funds have recently bought and sold shares of the business. Brooklands Fund Management Ltd bought a new position in shares of Braskem in the first quarter valued at approximately $2,013,000. Bank of America Corp DE boosted its stake in Braskem by 178,471.4% during the first quarter. Bank of America Corp DE now owns 50,000 shares of the company’s stock worth $183,000 after buying an additional 49,972 shares in the last quarter. Engineers Gate Manager LP boosted its position in shares of Braskem by 192.8% during the 2nd quarter. Engineers Gate Manager LP now owns 68,198 shares of the company’s stock valued at $166,000 after acquiring an additional 44,905 shares in the last quarter. Private Advisor Group LLC bought a new stake in Braskem in the first quarter valued at $157,000. Finally, Ramsey Quantitative Systems acquired a new position in Braskem in the second quarter valued at about $155,000.

Braskem Company Profile

Braskem SA is a Brazil-based petrochemical company that produces basic chemicals and thermoplastic resins used in packaging, construction, automotive components, consumer goods, agriculture and other industrial applications. Its product portfolio includes polyethylene, polypropylene and polyvinyl chloride, as well as inputs such as ethylene, propylene and other petrochemical intermediates.

Founded in 2002 through the combination of several Brazilian petrochemical businesses, Braskem developed into one of Latin America’s largest petrochemical producers.