The time has not yet come to remove your chips from the table: Braskem S.A. (BAK)

Braskem S.A. (NYSE: BAK) stock jumped 5.44% on Tuesday to $8.92 against a previous-day closing price of $8.46. With 0.83 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.38 million shares. During the session, the Chemicals company that operates in wider Basic Materials sector, reached to the highest price of $9.00 whereas the lowest price it dropped to was $8.45. The 52-week range on BAK shows that it touched its highest point at $21.22 and its lowest point at $8.23 during that stretch. It currently has a 1-year price target of $18.62. With its current market cap of 3.73 billion, BAK has annualized dividend of $3.31 while the current yield stands at 37.05%. Beta for the stock currently stands at 1.66.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BAK was down-trending over the past week, with a drop of -1.33%, but this was down by -2.30% over a month. Three-month performance dropped to -33.48% while six-month performance fell -29.09%. The stock lost -49.38% in the past year, while it has lost -3.04% so far this year. A look at the trailing 12-month EPS for BAK yields 0.92 with Next year EPS estimates of 0.64. For the next quarter, that number is 0.05. This implies an EPS growth rate of 308.70% for this year and -31.90% for next year. EPS is expected to grow by 9.70% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 102.20%.

Float and Shares Shorts:

At present, 398.23 million BAK shares are outstanding with a float of 101.75 million shares on hand for trading. On Oct 13, 2022, short shares totaled 0.42 million, which was 0.11% higher than short shares on Sep 14, 2022. In addition to Mr. Roberto Lopes Pontes Simoes as the firm’s CEO & Director, Mr. Pedro van Langendonck Teixeira de Freitas serves as its CFO and Head of Procurement & Institutional Relation.

Institutional Ownership:

Through their ownership of 1.93% of BAK’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 0.93% of BAK, in contrast to 0.63% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in BAK with 0.38% of the stake, The Vanguard Group, Inc. holds 653,303 shares worth 653,303. A second-largest stockholder of BAK, Dimensional Fund Advisors LP, holds 627,555 shares, controlling over 0.36% of the firm’s shares. Renaissance Technologies LLC is the third largest shareholder in BAK, holding 572,756 shares or 0.33% stake. With a 0.26% stake in BAK, the DFA Emerging Markets Core Equity is the largest stakeholder. A total of 454,922 shares are owned by the mutual fund manager. The Vanguard Emerging Markets Stock I, which owns about 0.22% of BAK stock, is the second-largest Mutual Fund holder. It holds 375,062 shares valued at 3.45 million. Vanguard Total International Stoc holds 0.10% of the stake in BAK, owning 179,968 shares worth 1.66 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BAK since 9 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BAK analysts setting a high price target of $26.34 and a low target of $11.27, the average target price over the next 12 months is $17.30. Based on these targets, BAK could surge 195.29% to reach the target high and rise by 26.35% to reach the target low. Reaching the average price target will result in a growth of 93.95% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BAK will report FY 2022 earnings on 03/14/2024. Analysts have provided yearly estimates in a range of $2.40 being high and $0.43 being low. For BAK, this leads to a yearly average estimate of $1.17. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Braskem S.A. surprised analysts by -$0.87 when it reported -$0.67 EPS against a consensus estimate of $0.20. The surprise factor in the prior quarter was -$1.41. Based on analyst estimates, the high estimate for the next quarter is $0.56 and the low estimate is -$0.23. The average estimate for the next quarter is thus $0.11.

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