Braskem (NYSE:BAK) Shares Gap Up – Still a Buy?

Braskem S.A. (NYSE:BAK) shares gapped up before the market opened 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 traded.

Wall Street Analyst Weigh In

BAK has been the topic of a number of recent research reports. Weiss Ratings restated a “sell (e+)” rating on shares of Braskem in a research note on Wednesday, October 8th. Citigroup downgraded Braskem from a “buy” rating to a “hold” rating in a report on Friday, October 10th. UBS Group lowered Braskem from a “buy” rating to a “neutral” rating and lowered their price objective for the stock from $5.10 to $3.80 in a research report on Friday, September 26th. JPMorgan Chase & Co. cut their target price on shares of Braskem from $6.00 to $5.00 and set a “neutral” rating for the company in a report on Wednesday, August 27th. Finally, Zacks Research cut shares of Braskem from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 30th. Five research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus target price of $4.40.

Braskem Stock Up 8.4%

The firm has a market capitalization of $1.21 billion, a PE ratio of -1.33 and a beta of 1.89. The stock has a 50-day moving average price of $2.76 and a 200 day moving average price of $3.04.

Braskem (NYSE:BAK) last announced its earnings results on Wednesday, November 12th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.48) by $0.46. The business had revenue of $3.25 billion for the quarter, compared to analysts’ expectations of $3.23 billion. As a group, equities analysts predict that Braskem S.A. will post -0.77 earnings per share for the current fiscal year.

Institutional Trading of Braskem

Institutional investors and hedge funds have recently modified their holdings of the stock. Ballentine Partners LLC purchased a new position in Braskem in the 3rd quarter valued at about $34,000. Brevan Howard Capital Management LP acquired a new position in shares of Braskem during the third quarter valued at approximately $64,000. Dark Forest Capital Management LP lifted its position in shares of Braskem by 94.7% in the third quarter. Dark Forest Capital Management LP now owns 32,127 shares of the company’s stock valued at $78,000 after acquiring an additional 15,630 shares in the last quarter. Virtu Financial LLC lifted its position 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 acquiring an additional 9,938 shares in the last quarter. Finally, Van ECK Associates Corp acquired a new stake in shares of Braskem in the third quarter worth approximately $117,000.

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.