Boeing (NYSE:BA) Shares Up 3.5% – Here’s What Happened

The Boeing Company (NYSE:BA)’s share price was up 3.5% during mid-day trading on Thursday. The company traded as high as $194.56 and last traded at $192.6460. 13,452,994 shares were traded during trading, an increase of 98% from the average session volume of 6,802,563 shares. The stock had previously closed at $186.05.

Boeing News Summary

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: Boeing won a contract valued at more than $20 billion to develop the Navy’s next-generation F/A-XX sixth-generation fighter, defeating Northrop Grumman. The award expands Boeing’s defense backlog and strengthens its position in future production and sustainment work. Boeing chosen by U.S. Navy to develop next-generation fighter jet
• Positive Sentiment: The F/A-XX win follows Boeing’s selection for the Air Force’s F-47 program, potentially giving the company a leading role in both U.S. sixth-generation fighter platforms and creating a multidecade revenue opportunity. However, near-term financial benefits will be limited because the initial phase emphasizes engineering, testing and development rather than high-volume production. Boeing’s Fighter Victory Opens the Door to Decades of Defense Revenue
• Positive Sentiment: Ethiopian Airlines ordered eight 777-8 freighters and two 777 freighters, adding commercial backlog and making Ethiopian the first African carrier to order the newest 777-8 freighter. Ethiopian Airlines Orders Boeing Freighters
• Neutral Sentiment: Boeing is scheduled to report third-quarter results on October 27. Investors will likely focus on free cash flow, defense margins and potential charges as the company manages several complex development programs. Boeing to Release Third Quarter Results
• Negative Sentiment: The FAA is reportedly considering a review of software affecting the 737 MAX, while certification of the MAX 10 faces further delay. Officials have said there is currently no safety concern, but additional regulatory scrutiny could postpone deliveries and increase costs. US does not see safety concern from 737 MAX software issue
• Negative Sentiment: Engineering and technical workers represented by SPEEA are voting on an improved contract offer. A rejection could bring Boeing closer to a strike, potentially disrupting delayed aircraft programs and slowing deliveries. Contract vote looms for Boeing workers
• Negative Sentiment: Pomerantz LLP announced an investigation into potential claims on behalf of Boeing investors, adding a legal and reputational overhang, though the announcement does not establish wrongdoing. Pomerantz investor investigation

Analysts Set New Price Targets

A number of equities research analysts have weighed in on BA shares. JPMorgan Chase & Co. lifted their price objective on Boeing from $270.00 to $290.00 and gave the company an “overweight” rating in a report on Wednesday, July 29th. Robert W. Baird set a $300.00 price target on Boeing in a report on Wednesday, July 29th. Barclays downgraded Boeing from an “equal weight” rating to an “underweight” rating in a research note on Tuesday, August 11th. Argus upgraded Boeing from a “hold” rating to a “buy” rating and set a $265.00 price objective for the company in a research report on Tuesday, August 11th. Finally, Sanford C. Bernstein reissued an “outperform” rating on shares of Boeing in a report on Wednesday. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, six have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $270.95.

Boeing Stock Performance

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 company has a market capitalization of $152.26 billion, a PE ratio of 83.40 and a beta of 1.21. The stock has a 50-day simple moving average of $213.10 and a 200 day simple moving average of $216.69.

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

Hedge Funds Weigh In On Boeing

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Jupiter Topco LLC acquired a new stake in shares of Boeing during the second quarter valued at $911,878,000. Janus Henderson Group PLC boosted its stake in shares of Boeing by 43.1% during the 4th quarter. Janus Henderson Group PLC now owns 3,907,876 shares of the aircraft producer’s stock worth $840,204,000 after purchasing an additional 1,176,074 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in shares of Boeing by 2.5% during the fourth quarter. Bank of New York Mellon Corp now owns 3,613,462 shares of the aircraft producer’s stock worth $784,555,000 after buying an additional 89,106 shares in the last quarter. Legal & General Group Plc acquired a new position in shares of Boeing in the second quarter valued at approximately $710,816,000. Finally, Deutsche Bank AG purchased a new position in shares of Boeing during the second quarter valued at approximately $539,456,000. Institutional investors and hedge funds own 64.82% of the company’s stock.

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.