Braskem S.A. (NYSE: BAK) experienced a notable increase in share price, rising by 8.7% during mid-day trading on November 10, 2023. The stock reached a high of $3.12 before closing at $3.1750. Approximately 460,278 shares changed hands, reflecting a significant decrease of 53% from the average daily trading volume of 970,162 shares. Prior to this surge, shares had closed at $2.92.
Analysts have been closely monitoring Braskem, leading to various ratings adjustments recently. On October 10, 2023, Citigroup downgraded the stock from a “buy” to a “hold” rating. Similarly, UBS Group lowered its rating from “buy” to “neutral,” while also dropping the price target from $5.10 to $3.80 on September 26, 2023. In contrast, Zacks Research upgraded Braskem from “hold” to “strong buy” in a report on December 29, 2023. Weiss Ratings maintained a “sell (e+)” rating, and Santander revised its rating from “neutral” to “underperform” on October 16, 2023. Currently, one investment analyst rates the stock as a strong buy, four have given it a hold rating, and two have assigned a sell rating. According to MarketBeat, the average rating stands at “hold” with a consensus target price of $4.40.
Braskem’s Financial Performance
Braskem recently announced its quarterly earnings on November 12, 2023. The company reported earnings per share (EPS) of ($0.02), surpassing analysts’ expectations of ($0.48) by $0.46. Revenue for the quarter amounted to $3.25 billion, slightly above the consensus estimate of $3.23 billion. Analysts anticipate that Braskem will report an EPS of (-0.77) for the current fiscal year.
Institutional trading activity has also seen notable shifts. Jump Financial LLC significantly increased its stake in Braskem by 607.1% in the second quarter, now holding 263,771 shares valued at approximately $865,000 after acquiring an additional 226,467 shares. Additionally, Van ECK Associates Corp purchased a new position valued at around $117,000 during the third quarter. Centric Wealth Management and Creative Planning also expanded their holdings, with Creative Planning increasing its stake by 145.0% in the third quarter, now owning 56,790 shares worth $137,000. Jane Street Group LLC also grew its stake by 130.3% in the second quarter, acquiring 49,301 shares valued at $162,000.
About Braskem
Braskem, headquartered in São Paulo, Brazil, stands as a leading integrated petrochemical company and is the largest producer of thermoplastic resins in Latin America. The company’s operations span the entire value chain, from sourcing feedstock to polymer production, distribution, and recycling. Braskem serves a diverse range of end markets, offering products that include polypropylene, polyethylene, and polyvinyl chloride (PVC), which are utilized in sectors such as packaging, automotive, construction, and electrical and electronics.
As market dynamics continue to evolve, investors will be keenly observing Braskem’s performance and the implications of recent analyst ratings on future trading activity.
