Investors Buy High Volume of Call Options on Boeing (NYSE:BA)

The Boeing Company (NYSE:BA) was the target of some unusual options trading activity on Thursday. Traders bought 87,977 call options on the stock. This is an increase of 27% compared to the average daily volume of 69,093 call options.

More Boeing News

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: $20 billion Navy fighter contract: Boeing was selected to develop the U.S. Navy’s F/A-XX sixth-generation fighter, a strategic win that could lead to decades of production and sustainment revenue. The initial award covers development and test aircraft, so the largest financial benefits are likely years away. Boeing’s Fighter Victory Opens the Door to Decades of Defense Revenue
• Positive Sentiment: Strike threat eliminated: Approximately 17,000 engineers and technical workers represented by SPEEA ratified a four-year contract, avoiding a potential Oct. 6 strike that could have delayed the 737 MAX 10 and 777X programs and slowed aircraft deliveries. The agreement removes an immediate operational risk as Boeing seeks to increase production. Boeing white-collar workers approve latest contract offer
• Positive Sentiment: Additional commercial momentum: Ethiopian Airlines ordered eight 777-8 freighters and two 777 freighters, adding to Boeing’s widebody backlog and supporting confidence in the 777X freighter program. Ethiopian Airlines orders Boeing freighters
• Neutral Sentiment: Investor positioning is active: Call-option volume was approximately 27% above its average, signaling increased speculative interest after the defense award. Options activity can amplify near-term moves but does not establish a fundamental change in value.
• Negative Sentiment: 737 MAX 10 delay: The FAA is reportedly reviewing a software issue that could postpone certification of the MAX 10. Officials have said they see no current safety concern, but another delay threatens Boeing’s delivery schedule and cash-flow recovery. U.S. does not see safety concern from 737 MAX software issue
• Negative Sentiment: Execution and valuation concerns remain: Analysts continue to highlight Boeing’s heavy debt burden, weak liquidity metrics and elevated valuation relative to current profitability. Defense contracts improve the long-term outlook, but development programs carry substantial cost and margin risks, while the company’s latest quarterly EPS missed expectations.

Boeing Stock Performance

BA stock opened at $192.65 on Friday. The company has a 50-day simple moving average of $212.77 and a 200 day simple moving average of $216.56. The company has a market capitalization of $152.26 billion, a P/E ratio of 83.40 and a beta of 1.26. The company has a quick ratio of 0.33, a current ratio of 1.14 and a debt-to-equity ratio of 6.77. Boeing has a fifty-two week low of $176.77 and a fifty-two week high of $254.35.

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

Institutional Trading of Boeing

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC grew its holdings in shares of Boeing by 16.0% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 42,417 shares of the aircraft producer’s stock worth $9,182,000 after acquiring an additional 5,862 shares during the last quarter. Rakuten Investment Management Inc. boosted its position in shares of Boeing by 502.3% in the 4th quarter. Rakuten Investment Management Inc. now owns 103,099 shares of the aircraft producer’s stock valued at $22,398,000 after purchasing an additional 85,982 shares during the period. Louisiana State Employees Retirement System purchased a new position in Boeing in the 1st quarter worth about $7,961,000. Patriot Financial Group Insurance Agency LLC increased its stake in Boeing by 103.8% in the 1st quarter. Patriot Financial Group Insurance Agency LLC now owns 11,240 shares of the aircraft producer’s stock worth $2,237,000 after purchasing an additional 5,726 shares in the last quarter. Finally, Deutsche Bank AG raised its holdings in Boeing by 47.5% during the 4th quarter. Deutsche Bank AG now owns 2,376,243 shares of the aircraft producer’s stock worth $515,930,000 after buying an additional 765,197 shares during the period. 64.82% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts have issued reports on BA shares. The Goldman Sachs Group cut shares of Boeing from a “buy” rating to a “hold” rating in a report on Tuesday, August 11th. Royal Bank Of Canada lowered their price objective on Boeing from $275.00 to $265.00 and set an “outperform” rating for the company in a research note on Wednesday, July 29th. BNP Paribas Exane upgraded Boeing from an “underperform” rating to an “outperform” rating and raised their target price for the company from $230.00 to $300.00 in a research note on Monday, August 3rd. Sanford C. Bernstein reissued an “outperform” rating on shares of Boeing in a report on Wednesday. Finally, Argus raised shares of Boeing from a “hold” rating to a “buy” rating and set a $265.00 price objective on the stock in a report on Tuesday, August 11th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, five have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $270.95.

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.