Boeing (NYSE:BA) Stock Price Down 6.8% – Time to Sell?

The Boeing Company (NYSE:BA) traded down 6.8% on Monday. The stock traded as low as $184.01 and last traded at $184.6630. Approximately 17,829,702 shares changed hands during mid-day trading, an increase of 165% from the average session volume of 6,728,088 shares. The stock had previously closed at $198.07.

Boeing News Roundup

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: FTAI Aviation agreed to acquire 27 Boeing 737-700 aircraft from WestJet, indicating continued demand for Boeing’s installed fleet and potentially supporting aftermarket and leasing activity. However, the transaction involves used aircraft and is not a direct order for new Boeing jets. FTAI acquires 27 Boeing 737-700s
• Neutral Sentiment: Analyst commentary remains comparatively constructive, including a recent Wolfe Research upgrade and published price targets materially above the current trading level. These views provide some support, but they may be overshadowed by the latest regulatory development. Boeing upgraded at Wolfe Research
• Negative Sentiment: The FAA said it will not certify Boeing’s largest 737 MAX variant, the MAX 10, until it evaluates a software bug. The issue could disable automated landing guidance if pilots conduct a go-around, creating uncertainty around certification timing and future deliveries. FAA delays Boeing 737 MAX 10 certification
• Negative Sentiment: Boeing had notified airlines about the software problem in August, but broader media coverage has renewed concerns over flight-safety oversight and the possibility of additional inspections, software fixes or operational restrictions on some MAX aircraft. Boeing flags 737 MAX navigation software glitch
• Negative Sentiment: Investors are treating the episode as a potential setback to Boeing’s recovery because any added FAA review could complicate production normalization, certification milestones and delivery expectations. The stock has consequently decreased and is trading near its 52-week low, with unusually heavy volume. FAA says software issue will delay Boeing 737 MAX certification

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on BA shares. JPMorgan Chase & Co. boosted their price target on shares of Boeing from $270.00 to $290.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 29th. Wolfe Research raised shares of Boeing from a “hold” rating to a “strong-buy” rating in a research note on Thursday. UBS Group began coverage on Boeing in a report on Tuesday, August 11th. They set a “buy” rating on the stock. The Goldman Sachs Group cut Boeing from a “buy” rating to a “hold” rating in a report on Tuesday, August 11th. Finally, Robert W. Baird set a $300.00 price objective on Boeing in a research note on Wednesday, July 29th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Boeing presently has an average rating of “Moderate Buy” and a consensus target price of $270.95.

Boeing Stock Down 6.8%

The company has a debt-to-equity ratio of 6.77, a current ratio of 1.14 and a quick ratio of 0.33. The business’s 50 day simple moving average is $214.38 and its 200 day simple moving average is $217.23. The company has a market capitalization of $145.95 billion, a PE ratio of 79.94 and a beta of 1.21.

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

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. QRG Capital Management Inc. raised its position in Boeing by 449.6% in the second quarter. QRG Capital Management Inc. now owns 571,042 shares of the aircraft producer’s stock valued at $123,613,000 after purchasing an additional 467,137 shares during the period. Envestnet Portfolio Solutions Inc. lifted its stake in shares of Boeing by 116.8% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 72,412 shares of the aircraft producer’s stock valued at $15,675,000 after purchasing an additional 39,007 shares during the last quarter. Premier Financial Group purchased a new position in shares of Boeing during the 2nd quarter worth $128,000. Security National Bank of SO Dak purchased a new position in shares of Boeing during the 2nd quarter worth $30,000. Finally, Anchor Investment Management LLC increased its position in shares of Boeing by 1.7% during the 2nd quarter. Anchor Investment Management LLC now owns 10,252 shares of the aircraft producer’s stock worth $2,219,000 after purchasing an additional 171 shares during the last quarter. 64.82% of the stock is currently owned by hedge funds and other institutional investors.

Boeing Company Profile

The Boeing Company (NYSE: BA) is a global aerospace company that designs, manufactures and supports commercial airplanes, military aircraft, spacecraft and related systems. Its commercial portfolio includes the 737, 787 Dreamliner and 777 families, as well as the 777X program. Boeing sells aircraft to airlines, cargo operators and leasing companies around the world.

Through its defense and space operations, Boeing provides products and services for the U.S. government, allied governments and other institutional customers.