Boeing (NYSE:BA) Stock Falls 2.5% – Here’s Why
by Kim Johansen · The Markets DailyThe Boeing Company (NYSE:BA – Get Free Report) traded down 2.5% on Thursday. The company traded as low as $186.76 and last traded at $187.4640. 6,459,122 shares traded hands during trading, a decline of 5% from the average daily volume of 6,812,203 shares. The stock had previously closed at $192.28.
Key Stories Impacting Boeing
Here are the key news stories impacting Boeing this week:
- Positive Sentiment: The FAA has granted final certification for Boeing’s long-delayed 737 MAX 10, removing a significant hurdle for deliveries and allowing the aircraft to compete more directly with Airbus’ A321neo. The approval could support Boeing’s backlog, revenue, cash flow, and long-term competitiveness. Boeing wins FAA certification for 737 MAX 10
- Positive Sentiment: Analysts and investors expect the MAX 10 approval, rising aircraft deliveries, and stronger commercial-services demand to improve earnings and support Boeing’s turnaround. A production recovery could also improve margins across the aerospace supply chain. Great News for Boeing Investors
- Positive Sentiment: GA-ASI, a General Atomics business, is partnering with Spirit Defense, a Boeing company, to support airframe production for the FQ-42 Vengeance Collaborative Combat Aircraft. The relationship highlights potential defense-manufacturing activity for Boeing-affiliated operations, although the financial impact was not disclosed. GA-ASI Partnering With Spirit Defense For FQ-42 CCA Production
- Neutral Sentiment: Boeing is scheduled to report third-quarter results before the market opens on October 27. Investors will focus on deliveries, free cash flow, MAX production, services demand, and management’s guidance for the recovery. Boeing Stock Preps the Runway Ahead of Earnings
- Negative Sentiment: Despite the certification win, investors remain concerned about Boeing’s high debt burden, weak liquidity metrics, supply-chain delays, negative returns on invested capital, and the company’s ability to convert production growth into sustainable cash flow. What’s Going on With Boeing Shares on Friday?
Wall Street Analysts Forecast Growth
Several equities analysts have recently weighed in on the stock. Sanford C. Bernstein decreased their price target on shares of Boeing from $298.00 to $278.00 and set an “outperform” rating for the company in a research note on Monday, October 12th. Morgan Stanley decreased their target price on Boeing from $250.00 to $225.00 and set an “equal weight” rating on the stock in a research report on Friday, October 16th. Robert W. Baird set a $300.00 price target on Boeing and gave the stock an “outperform” rating in a research report on Wednesday, July 29th. Barclays assumed coverage on Boeing in a research note on Friday, October 9th. They issued an “overweight” rating and a $300.00 price target on the stock. Finally, UBS Group restated a “buy” rating on shares of Boeing in a research report on Tuesday, September 29th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have issued a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $266.96.
View Our Latest Stock Analysis on Boeing
Boeing Stock Up 0.4%
The company has a quick ratio of 0.33, a current ratio of 1.14 and a debt-to-equity ratio of 6.77. The stock has a 50 day simple moving average of $200.75 and a 200 day simple moving average of $215.14. The stock has a market cap of $148.87 billion, a price-to-earnings ratio of 81.54 and a beta of 1.26.
Boeing (NYSE:BA – Get Free Report) last posted its earnings results on Tuesday, July 28th. The aircraft producer reported ($0.76) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.34) by ($0.42). The business had revenue of $24.56 billion during the quarter, compared to analyst estimates of $24.26 billion. Boeing had a negative return on equity of 346.82% and a net margin of 2.41%. The company’s revenue was up 8.0% on a year-over-year basis. During the same quarter in the prior year, the company earned ($1.24) EPS. As a group, analysts expect that The Boeing Company will post -1.08 earnings per share for the current fiscal year.
Institutional Trading of Boeing
Large investors have recently bought and sold shares of the company. Highland Investment Advisors LLC purchased a new position in shares of Boeing in the second quarter worth about $26,000. Strategic Wealth Advisors LLC bought a new stake in Boeing during the second quarter worth about $27,000. Retirement Wealth Solutions LLC boosted its stake in Boeing by 3,575.0% in the third quarter. Retirement Wealth Solutions LLC now owns 147 shares of the aircraft producer’s stock worth $27,000 after buying an additional 143 shares in the last quarter. Bell Investment Advisors Inc purchased a new stake in Boeing during the second quarter valued at about $29,000. Finally, Security National Bank of SO Dak bought a new position in shares of Boeing in the second quarter worth approximately $30,000. 64.82% of the stock is owned by hedge funds and other institutional investors.
About Boeing
The Boeing Company (NYSE: BA) is a global aerospace company that designs, manufactures and supports commercial airplanes, military aircraft, satellites, space systems and related products and services. Its offerings serve airlines, government agencies, defense organizations and other customers worldwide.
Boeing operates through three principal business areas: Commercial Airplanes, which develops and produces passenger and cargo aircraft; Defense, Space & Security, which provides military aircraft, weapons systems, satellites and space-related platforms; and Global Services, which offers parts, maintenance, training, engineering and other lifecycle support.
Founded in 1916 by William Boeing, the company has grown into one of the world’s major aerospace manufacturers.
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