Boeing (NYSE:BA) Shares Up 1.4% – Here’s Why

Shares of The Boeing Company (NYSE:BA) shot up 1.4% during trading on Friday. The company traded as high as $191.02 and last traded at $190.4670. 5,077,666 shares changed hands during trading, a decline of 26% from the average daily volume of 6,857,100 shares. The stock had previously closed at $187.75.

Key Stories Impacting Boeing

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: Avolon ordered 140 Boeing 737 MAX jets as part of a 250-aircraft package split with Airbus. The firm order strengthens Boeing’s commercial backlog, although the broader transaction remains subject to approval. Boeing Lands Order For 140 737 MAX Jets
• Positive Sentiment: Southwest Airlines is reportedly leaning toward Boeing’s 787 Dreamliner as it considers launching long-haul international service. A selection would provide a potentially important new customer and support Boeing’s widebody recovery, though no final order has been announced. Southwest Airlines weighs Boeing 787 for long-haul international push
• Positive Sentiment: Boeing’s $715 billion backlog, including $597 billion in commercial airplanes, underscores robust long-term demand. Analysts also point to rising demand for infrared search-and-track systems and Boeing’s approximately $14.7 billion PAC-3 seeker contract as potential defense-growth drivers. Can Rising IRST Demand Support Boeing’s Defense Growth Outlook?
• Neutral Sentiment: Barclays launched coverage of aerospace and defense stocks and included Boeing among its recommended “modern-day industrial revolution” buys. The favorable industry view offers sentiment support, but it does not establish a specific Boeing price target. Boeing and 10 More Buys for the Modern-Day Industrial Revolution
• Negative Sentiment: TD Cowen lowered its Boeing price target to $240 from $250 ahead of earnings, citing a disorderly aerospace-sector de-rating, although it maintained a Buy rating. Investors are also weighing Boeing’s debt wall, production delays, weak returns on invested capital and the risk that its large backlog will convert to revenue slowly. TD Cowen cuts targets on Boeing and other aerospace stocks

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on BA shares. Weiss Ratings reiterated a “sell (d+)” rating on shares of Boeing in a research note on Tuesday, July 21st. 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. The Goldman Sachs Group downgraded Boeing from a “buy” rating to a “hold” rating in a research note on Tuesday, August 11th. Bank of America reiterated a “buy” rating and set a $270.00 price objective on shares of Boeing in a research note on Friday, September 18th. Finally, BNP Paribas Exane raised shares of Boeing from an “underperform” rating to an “outperform” rating and increased their target price for the stock from $230.00 to $300.00 in a report on Monday, August 3rd. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, Boeing currently has a consensus rating of “Moderate Buy” and a consensus target price of $269.96.

Boeing Price Performance

The firm has a market capitalization of $150.54 billion, a P/E ratio of 82.45 and a beta of 1.26. The company has a current ratio of 1.14, a quick ratio of 0.33 and a debt-to-equity ratio of 6.77. The firm has a 50 day moving average price of $210.22 and a 200-day moving average price of $216.03.

Boeing (NYSE:BA) last released 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 company had revenue of $24.56 billion for the quarter, compared to the consensus estimate of $24.26 billion. During the same period in the prior year, the firm posted ($1.24) EPS. The business’s revenue for the quarter was up 8.0% compared to the same quarter last year. On average, analysts expect that The Boeing Company will post -0.91 earnings per share for the current year.

Institutional Investors Weigh In On Boeing

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Wedmont Private Capital boosted its stake in shares of Boeing by 17.9% during the 3rd quarter. Wedmont Private Capital now owns 13,675 shares of the aircraft producer’s stock worth $2,567,000 after purchasing an additional 2,076 shares during the period. WoodTrust Financial Corp raised its position in Boeing by 6.7% in the 3rd quarter. WoodTrust Financial Corp now owns 10,935 shares of the aircraft producer’s stock worth $2,035,000 after purchasing an additional 691 shares during the period. Douglas Lane & Associates LLC raised its position in Boeing by 1.3% in the 3rd quarter. Douglas Lane & Associates LLC now owns 431,882 shares of the aircraft producer’s stock worth $80,352,000 after purchasing an additional 5,711 shares during the period. Breakwater Capital Group lifted its stake in Boeing by 23.4% in the third quarter. Breakwater Capital Group now owns 4,065 shares of the aircraft producer’s stock worth $756,000 after purchasing an additional 771 shares during the last quarter. Finally, Chapin Davis Inc. lifted its stake in Boeing by 1.6% in the third quarter. Chapin Davis Inc. now owns 3,961 shares of the aircraft producer’s stock worth $737,000 after purchasing an additional 64 shares during the last quarter. Hedge funds and other institutional investors own 64.82% of the company’s stock.

About Boeing

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.