Braskem S.A. (NYSE: BAK) has received a “Hold” rating from seven ratings firms, according to Bloomberg Ratings. Out of these firms, one analyst recommends selling the stock, while four suggest holding and two advise buying. Furthermore, the average 12-month target price among brokers who have covered the stock in the past year is $25.50.
On Tuesday, NYSE BAK opened at $9.52. The company boasts a quick ratio of 0.92 and a current ratio of 1.49, indicating its ability to meet short-term financial obligations. Its debt-to-equity ratio is 7.08—a higher figure that implies a relatively high level of debt financing compared to equity financing.
With a market capitalization of $4.30 billion and a beta of 1.77, Braskem operates within the thermoplastic resins industry and is divided into three segments: Brazil, United States and Europe, and Mexico.
The Brazil segment focuses on the production and sale of olefins like ethylene and propylene; benzene products including toluene and xylenes; various fuels such as automotive gasoline and liquefied petroleum gas; intermediates like cumene; aliphatics, aromatics, hydrogenated solvents; specialties like isoprene and hydrocarbon resins.
Over the past 12 months, Braskem has traded between a low of $6.26 and a high of $14.51—a considerable range that reflects fluctuations in investor sentiment towards the company’s prospects.
The company demonstrates consistency with its 50-day moving average price standing at $9.76 and its two-hundred day moving average price at $9.31 over this period.
According to its most recent quarterly earnings report released on August 9th, Braskem reported an earnings per share (EPS) value of ($0.51), falling short of analysts’ consensus estimates of ($0.45) by a margin of ($0.06). Additionally, the company generated $3.59 billion in revenue for the quarter—slightly surpassing analyst forecasts of $3.50 billion.
Furthermore, Braskem’s negative return on equity of 50.16% and negative net margin of 4.15% signal areas for improvement within the company’s financial performance.
Investors and analysts alike continue to keep a close eye on Braskem S.A., evaluating its potential for growth and stability in the future.
Braskem S.A.
BAK
Buy
Updated on: 04/12/2023
Financial Health
Healthy
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Sell
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Sell
Divergent Opinions and Hedge Fund Activity Surrounding Braskem: A Complex Outlook for Investors
Braskem, a leading Brazilian petrochemical company, has recently garnered attention from analysts and hedge funds alike. Several analyst reports have highlighted the company’s performance, while hedge funds have made significant moves in buying and selling shares of Braskem.
In one such report, Scotiabank lowered their price objective on Braskem shares from $44.00 to $40.00. This research report was released on Monday, August 14th, indicating a pessimistic outlook for the company’s stock.
Contrary to this, HSBC upgraded Braskem shares from a “hold” rating to a “buy” rating in their research report published on Wednesday, June 14th. The conflicting opinions presented by different analysts further contribute to the perplexity surrounding the future prospects of Braskem.
TheStreet also weighed in on Braskem’s performance by downgrading its rating from a “c-” to a “d.” This downgrade occurred on Friday, August 25th, suggesting concerns about the company’s financial health and stability.
Another notable analyst report came from UBS Group, which downgraded Braskem shares from a “neutral” rating to a “sell” rating. This research note was released on Tuesday, August 29th, adding to the uncertainty surrounding the stock’s outlook.
Furthermore, JPMorgan Chase & Co. joined the list of downgrades by lowering their rating on Braskem shares from an “overweight” to a “neutral” rating. They also reduced their target price for the stock from $11.50 to $11.00 in their research note published on Wednesday, July 5th.
The conflicting assessments provided by these analyst reports serve as cautionary signals for investors considering Braskem as an investment opportunity. The diverse range of ratings reflects the considerable bustiness and fluctuation within the market sentiment towards Braskem.
Hedge funds have also been actively involved in trading Braskem shares. Sparta 24 Ltd. recently purchased a new stake in the company, amounting to approximately $318,000. This demonstrates that some investors continue to see potential value in Braskem.
Meanwhile, Wells Fargo & Company MN increased its stake in Braskem by 25.9% during the second quarter, representing their continued confidence in the company’s performance. Their additional purchase of 1,401 shares now brings their total ownership to 6,801 shares valued at $79,000.
Goldman Sachs Group Inc. also entered the scene as they acquired a new position in Braskem during the second quarter with an investment totaling $206,000. This move suggests that Goldman Sachs sees potential growth opportunities within the company.
Insigneo Advisory Services LLC is another notable institutional investor that has boosted its stake in Braskem by 43.9% during the second quarter. Their ownership now amounts to 22,785 shares valued at $265,000 after purchasing an additional 6,950 shares.
Lastly, Banco BTG Pactual S.A made a significant move by increasing its stake in Braskem by an astonishing 481.2%. By adding an additional 96,019 shares worth $1,351,000 during the second quarter, Banco BTG Pactual S.A clearly perceives a lucrative potential within the company.
It is important to note that institutional investors currently own only 0.06% of Braskem’s stock. Therefore their decisions may not necessarily be representative of overall market sentiments towards the company’s future prospects.
Braskem finds itself situated amidst a complex landscape with differing analyst opinions and varying hedge fund activities. As investors evaluate whether to buy or sell Braskem shares, they must carefully consider all available information and weigh each factor contributing to this perplexing situation surrounding the company’s outlook for growth and profitability.
Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute financial advice. Investors should carefully consider their own investment strategies before making any decisions.
Discussion about this post