Braskem (NYSE:BAK) Stock Price Up 9.4% – Should You Buy?
by Kim Johansen · The Markets DailyBraskem S.A. (NYSE:BAK – Get Free Report) shares shot up 9.4% on Monday. The stock traded as high as $1.7599 and last traded at $1.6950. Approximately 294,669 shares were traded during trading, a decline of 87% from the average daily volume of 2,343,189 shares. The stock had previously closed at $1.55.
Analysts Set New Price Targets
A number of research analysts recently weighed in on BAK shares. HSBC lowered shares of Braskem from a “buy” rating to a “hold” rating and decreased their price target for the company from $6.50 to $1.50 in a research note on Monday, September 28th. UBS Group cut Braskem from a “neutral” rating to a “sell” rating and reduced their target price for the company from $4.00 to $1.50 in a report on Tuesday, September 15th. Weiss Ratings restated a “sell (e+)” rating on shares of Braskem in a research report on Friday, July 17th. JPMorgan Chase & Co. lowered Braskem from an “overweight” rating to a “neutral” rating in a research note on Tuesday, June 30th. Finally, Citigroup lowered Braskem from a “neutral” rating to a “sell” rating in a research note on Thursday, June 25th. Three research analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Strong Sell” and an average target price of $2.56.
Check Out Our Latest Research Report on BAK
Braskem Price Performance
The stock has a market capitalization of $667.65 million, a PE ratio of -0.69, a P/E/G ratio of 0.10 and a beta of 1.56. The company’s 50 day moving average price is $1.89 and its two-hundred day moving average price is $2.94.
Braskem (NYSE:BAK – Get Free Report) last announced its quarterly earnings data on Friday, June 26th. The company reported $1.61 earnings per share (EPS) for the quarter. The company had revenue of $4.20 billion during the quarter. Braskem had a negative net margin of 7.28% and a negative return on equity of 67.75%. Analysts forecast that Braskem S.A. will post 1.58 earnings per share for the current year.
Institutional Investors Weigh In On Braskem
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Brooklands Fund Management Ltd purchased a new position in Braskem during the first quarter worth approximately $2,013,000. X Square Capital LLC grew its holdings in Braskem by 117.6% in the 4th quarter. X Square Capital LLC now owns 185,000 shares of the company’s stock valued at $546,000 after buying an additional 100,000 shares in the last quarter. Engineers Gate Manager LP increased its stake in shares of Braskem by 192.8% in the 2nd quarter. Engineers Gate Manager LP now owns 68,198 shares of the company’s stock worth $166,000 after acquiring an additional 44,905 shares during the last quarter. Ramsey Quantitative Systems acquired a new stake in shares of Braskem in the 2nd quarter worth $155,000. Finally, SmartHarvest Portfolios LLC raised its holdings in shares of Braskem by 49.7% during the 1st quarter. SmartHarvest Portfolios LLC now owns 54,466 shares of the company’s stock worth $199,000 after acquiring an additional 18,085 shares during the period.
About Braskem
Braskem SA is a Brazilian petrochemical company headquartered in São Paulo, Brazil. The company produces basic chemicals and thermoplastic resins used in packaging, construction, automotive components, consumer goods, agriculture, and other industrial applications.
Its product portfolio includes olefins such as ethylene and propylene, polyolefins including polyethylene and polypropylene, polyvinyl chloride (PVC), caustic soda, and other chemical intermediates. Braskem also markets renewable polyethylene under the “I’m green” brand, which is made from sugarcane-based ethanol.
Established in 2002 through the consolidation of petrochemical assets in Brazil, Braskem expanded internationally through subsequent acquisitions and investments.