Boeing (NYSE:BA) Stock Falls 2.5% – What’s Next?

Shares of The Boeing Company (NYSE:BA) traded down 2.5% during trading on Thursday. The stock traded as low as $169.41 and last traded at $172.6250. 11,212,165 shares traded hands during trading, an increase of 57% from the average session volume of 7,159,505 shares. The stock had previously closed at $177.00.

More Boeing News

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: Avolon ordered 140 Boeing 737-10 jets, a record order that reinforces demand for Boeing’s largest 737 variant and adds to its backlog. Boeing Looks 8% Overvalued Following Avolon’s Order
• Positive Sentiment: Two directors bought Boeing shares after the stock’s decline, while a report also cited positive free cash flow. Those signals may bolster confidence, though they do not resolve operational challenges. Boeing Has the Orders, the Cash Flow, and Insider Buyers
• Neutral Sentiment: A valuation analysis said Boeing shares looked about 8% overvalued despite the Avolon order, reflecting concerns about the company’s recent performance and delivery outlook. Boeing Valuation Analysis
• Negative Sentiment: Boeing reportedly delivered 32 MAX jets in October, its lowest monthly total in nearly a year. Fewer deliveries could weigh on revenue and complicate the production recovery. October MAX Deliveries
• Negative Sentiment: The FAA is scrutinizing Dreamliner wing issues, adding a potential quality-control and regulatory overhang that could raise the risk of delays or added costs. FAA Scrutiny of Dreamliner Wings

Analyst Upgrades and Downgrades

BA has been the subject of a number of research reports. Tigress Financial upped their price objective on shares of Boeing from $295.00 to $305.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Boeing in a research report on Monday, October 19th. Zacks Research downgraded shares of Boeing from a “hold” rating to a “strong sell” rating in a research note on Friday, October 16th. Robert W. Baird cut their price target on shares of Boeing from $300.00 to $230.00 and set an “outperform” rating for the company in a research report on Wednesday, October 28th. Finally, Scotiabank raised Boeing to an “outperform” rating in a research note on Wednesday, October 28th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $247.88.

Boeing Stock Performance

The stock has a market cap of $137.44 billion, a PE ratio of 18.87 and a beta of 1.34. The company has a debt-to-equity ratio of 6.31, a current ratio of 1.13 and a quick ratio of 0.34. The business has a 50 day moving average price of $192.39 and a two-hundred day moving average price of $215.41.

Boeing (NYSE:BA) last issued its earnings results on Tuesday, October 27th. The aircraft producer reported ($0.34) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.25) by ($0.09). Boeing had a negative return on equity of 42.40% and a net margin of 7.98%. The firm had revenue of $24.19 billion during the quarter, compared to the consensus estimate of $23.95 billion. During the same quarter in the prior year, the business posted ($7.47) EPS. The firm’s revenue for the quarter was up 3.9% on a year-over-year basis. As a group, equities research analysts forecast that The Boeing Company will post -1.76 EPS for the current fiscal year.

Insider Activity

In other news, Director Steven Mollenkopf acquired 2,950 shares of the stock in a transaction dated Friday, October 30th. The stock was purchased at an average cost of $173.03 per share, with a total value of $510,438.50. Following the completion of the purchase, the director owned 6,717 shares in the company, valued at approximately $1,162,242.51. The trade was a 78.31% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Mortimer Buckley bought 5,820 shares of the company’s stock in a transaction dated Friday, October 30th. The shares were purchased at an average price of $171.55 per share, with a total value of $998,421.00. Following the completion of the acquisition, the director owned 10,250 shares of the company’s stock, valued at $1,758,387.50. This trade represents a 131.38% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Boeing

Several institutional investors and hedge funds have recently bought and sold shares of the business. Fisher Asset Management LLC raised its holdings in shares of Boeing by 2.2% during the third quarter. Fisher Asset Management LLC now owns 6,191,640 shares of the aircraft producer’s stock valued at $1,151,955,000 after acquiring an additional 135,985 shares in the last quarter. Jupiter Topco LLC purchased a new stake in Boeing in the second quarter worth $911,878,000. Bank of New York Mellon Corp purchased a new stake in Boeing in the second quarter worth $747,763,000. Legal & General Group Plc bought a new stake in Boeing in the second quarter valued at $710,816,000. Finally, Deutsche Bank AG bought a new stake in Boeing in the second quarter valued at $539,456,000. Hedge funds and other institutional investors own 64.82% of the company’s stock.

Boeing Company Profile

The Boeing Company is an aerospace manufacturer that designs, builds and supports commercial airplanes, defense products and space systems. Its commercial aircraft include the 737, 767, 777 and 787 families, which serve passenger and cargo operators around the world.

Boeing’s defense, space and security business supplies military aircraft, helicopters, weapons, satellites and related systems, as well as services for government customers. Its Boeing Global Services business provides support such as maintenance, parts, training and logistics for commercial and government customers.

Founded in 1916 by William Boeing, the company has grown into a global aerospace business serving customers across the Americas, Europe, Asia and other regions.