Shares of Braskem S.A. (NYSE: BAK) experienced a notable increase of 8.7% during mid-day trading on October 10, 2023. The stock peaked at $3.12 before concluding the day at $3.1750. Approximately 460,278 shares exchanged hands, reflecting a 53% decline from the average daily trading volume of 970,162 shares. Prior to this surge, the stock had closed at $2.92.
Analyst Ratings and Market Reactions
Braskem has recently been the focus of several research reports, highlighting fluctuations in analyst ratings. Notably, Citigroup downgraded its rating from “buy” to “hold” on October 10. Similarly, UBS Group reduced its rating from “buy” to “neutral” and adjusted its price target from $5.10 to $3.80 on September 26. In contrast, Zacks Research upgraded Braskem from a “hold” to a “strong-buy” rating on December 29, 2023.
Other ratings have varied, with Weiss Ratings maintaining a “sell (e+)” rating as of October 8, while Santander shifted its rating from “neutral” to “underperform” on October 16. Currently, one investment analyst has given Braskem a strong buy rating, four analysts suggest holding, and two have recommended selling. The average rating stands at “hold” with a consensus target price of $4.40, according to MarketBeat.
Quarterly Earnings and Institutional Investments
Braskem reported its quarterly earnings results on November 12, 2023, revealing a loss of ($0.02) earnings per share (EPS), exceeding the consensus estimate of ($0.48) by $0.46. The company generated revenue of $3.25 billion, slightly above the expected $3.23 billion. Analysts forecast that Braskem will post an EPS of (-0.77) for the current fiscal year.
In the realm of institutional trading, several hedge funds have recently adjusted their holdings in Braskem. Notably, Jump Financial LLC increased its stake by 607.1% in the second quarter, now owning 263,771 shares valued at approximately $865,000 after acquiring an additional 226,467 shares. Van ECK Associates Corp also entered a new position during the third quarter estimated at around $117,000.
Other significant changes include Centric Wealth Management, which acquired a new stake worth approximately $128,000, and Creative Planning, which enhanced its holdings by 145.0% in the third quarter. Jane Street Group LLC similarly increased its stake by 130.3%, now owning 49,301 shares valued at around $162,000.
Company Overview
Based in São Paulo, Brazil, Braskem is a prominent integrated petrochemical company and the largest producer of thermoplastic resins in Latin America. The company operates across the full value chain, from sourcing feedstock to producing and distributing a diverse range of products, including polypropylene, polyethylene, and polyvinyl chloride (PVC). These materials play vital roles in various industries, such as packaging, automotive, construction, and electrical and electronics.
As analysts continue to assess Braskem’s market performance and future trajectory, investors remain attentive to both market fluctuations and the company’s evolving strategies.
