Boeing (NYSE:BA) Stock Falls 1.6% – Here’s Why

The Boeing Company (NYSE:BA) shares were down 1.6% during trading on Thursday. The stock traded as low as $194.40 and last traded at $196.7170. 9,537,810 shares changed hands during mid-day trading, an increase of 43% from the average session volume of 6,673,486 shares. The stock had previously closed at $199.93.

Key Stories Impacting Boeing

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: Major commercial orders strengthen Boeing’s backlog. Turkish Airlines finalized an order for up to 150 737 MAX aircraft, including 100 firm 737-8 jets and options for 50 more. Biman Bangladesh Airlines also ordered 11 additional 787 Dreamliner and 737 MAX jets. The deals reinforce strong underlying demand for Boeing aircraft. Boeing and Turkish Airlines Finalize Order
• Positive Sentiment: Potential 737 MAX 10 certification is nearing. Alaska Air expects the MAX 10 to receive certification by the end of September and plans to take its first aircraft next spring. Certification would expand Boeing’s delivery opportunities, although timing and execution remain important risks. Alaska Air Expects 737 MAX 10 Certification
• Positive Sentiment: Automation and aftermarket initiatives could support margins. Boeing is pressing suppliers to adopt more automated production methods as output rises, while its 737 MAX landing-gear exchange program has completed its first American Airlines exchange. These efforts could improve manufacturing efficiency and expand recurring services revenue. Boeing Pushes Suppliers Toward Automation
• Neutral Sentiment: Labor uncertainty has eased, but costs may rise. Boeing’s engineers’ union recommended approval of the latest contract, reducing the immediate risk of a strike that could disrupt 777X testing. However, higher wages could add to near-term costs.
• Negative Sentiment: China-order expectations have deteriorated. Reports indicate the Trump-Xi summit is unlikely to produce a new major Chinese Boeing order. Investors had viewed such an announcement as an important near-term catalyst, so the disappointment is weighing on sentiment. Hope Fading for New Boeing China Deal
• Negative Sentiment: Production and financial execution remain the larger concern. Boeing’s 737 output of 47 aircraft per month is reportedly not yet stable because of wing-shop bottlenecks. Investors remain focused on whether the company can convert its sizable backlog into deliveries, cash flow and improved profitability.

Wall Street Analyst Weigh In

A number of research firms have issued reports on BA. Tigress Financial increased their target price on Boeing from $295.00 to $305.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Boeing in a research report on Tuesday, July 21st. Sanford C. Bernstein initiated coverage on shares of Boeing in a report on Tuesday, August 11th. They set an “outperform” rating for the company. Wolfe Research lowered Boeing from an “outperform” rating to a “hold” rating in a report on Tuesday, August 11th. Finally, UBS Group initiated coverage on shares of Boeing in a report on Tuesday, August 11th. They set a “buy” rating for the company. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $270.95.

Boeing Trading Down 1.6%

The firm has a 50-day moving average of $215.06 and a two-hundred day moving average of $217.67. The firm has a market capitalization of $155.48 billion, a P/E ratio of 85.16 and a beta of 1.21. The company has a current ratio of 1.14, a quick ratio of 0.33 and a debt-to-equity ratio of 6.77.

Boeing (NYSE:BA) last issued its quarterly earnings data on Tuesday, July 28th. The aircraft producer reported ($0.76) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.34) by ($0.42). Boeing had a net margin of 2.41% and a negative return on equity of 346.82%. The business had revenue of $24.56 billion during the quarter, compared to the consensus estimate of $24.26 billion. During the same quarter last year, the business earned ($1.24) EPS. The firm’s quarterly revenue was up 8.0% compared to the same quarter last year. On average, analysts anticipate that The Boeing Company will post -0.91 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in BA. Highland Investment Advisors LLC bought a new position in shares of Boeing in the 2nd quarter worth $26,000. 1 North Wealth Services LLC purchased a new position in shares of Boeing in the 4th quarter worth approximately $27,000. Wealth Preservation Advisors LLC increased its position in shares of Boeing by 66.7% during the fourth quarter. Wealth Preservation Advisors LLC now owns 125 shares of the aircraft producer’s stock valued at $27,000 after acquiring an additional 50 shares during the last quarter. Strategic Wealth Advisors LLC purchased a new position in Boeing in the second quarter worth $27,000. Finally, Bayban bought a new position in Boeing in the 4th quarter valued at $29,000. 64.82% of the stock is owned by institutional investors and hedge funds.

About Boeing

The Boeing Company is a global aerospace company that designs, manufactures and services commercial airplanes, military aircraft, satellites, space systems and other aerospace products. Its principal business areas include commercial airplanes, defense and security, and aftermarket services that support aircraft operations throughout their life cycles.

Boeing’s commercial portfolio includes the 737, 767, 777 and 787 families of jetliners, while its defense and space operations provide products and services for the U.S.