Boeing (NYSE:BA) Stock Jumps 2% – Should You Buy?

The Boeing Company (NYSE:BA)’s stock price shot up 2% during mid-day trading on Tuesday. The company traded as high as $190.91 and last traded at $187.9920. 10,214,660 shares changed hands during mid-day trading, an increase of 51% from the average session volume of 6,748,244 shares. The stock had previously closed at $184.39.

Boeing News Summary

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: Major $20 billion Navy fighter win: The U.S. Navy selected Boeing to develop its next-generation F/A-XX sixth-generation carrier-based fighter, which will replace the F/A-18 Super Hornet. The full-scale development award strengthens Boeing’s defense backlog and could position it for decades of production and sustainment revenue. Boeing chosen by U.S. Navy to develop next-generation fighter jet
• Positive Sentiment: Broader defense and commercial momentum: The F/A-XX award follows Boeing’s Air Force F-47 win and adds to its defense pipeline. Separately, Ethiopian Airlines ordered eight 777-8 freighters and two 777 freighters, supporting demand for Boeing’s widebody cargo aircraft. Ethiopian Airlines Orders Boeing Freighters
• Positive Sentiment: Valuation support from UBS: UBS said the recent selloff had gone too far and reiterated a Buy rating, arguing that Boeing’s normalized earnings potential is not fully reflected in the stock.
• Neutral Sentiment: Contract economics are long term: The initial award covers engineering, manufacturing, development and test aircraft; meaningful production revenue is years away. Investors will therefore focus on Boeing’s ability to execute without adding costly charges. The company is scheduled to report third-quarter results on October 27.
• Negative Sentiment: Potential engineering strike: Boeing engineers and technical workers are voting on an improved contract offer. A rejection could lead toward a strike, potentially delaying work on two aircraft programs and slowing deliveries. Contract vote looms for Boeing workers
• Negative Sentiment: 737 MAX 10 certification delay: The FAA postponed approval over a software issue, although the Transportation Secretary said there is currently no safety concern. The delay reinforces concerns about Boeing’s certification and execution timelines.
• Negative Sentiment: Legal overhang: Pomerantz announced an investigation into potential claims on behalf of Boeing investors, adding another source of reputational and litigation risk.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on BA shares. Argus raised 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. BNP Paribas Exane upgraded shares of Boeing from an “underperform” rating to an “outperform” rating and raised their price objective for the company from $230.00 to $300.00 in a report on Monday, August 3rd. Royal Bank Of Canada lowered their target price on shares of Boeing from $275.00 to $265.00 and set an “outperform” rating for the company in a research note on Wednesday, July 29th. UBS Group reaffirmed a “buy” rating on shares of Boeing in a report on Tuesday. Finally, Robert W. Baird set a $300.00 target price on Boeing in a research report on Wednesday, July 29th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $270.95.

Boeing Stock Up 2.2%

The stock has a market cap of $150.23 billion, a PE ratio of 81.05 and a beta of 1.21. The business has a 50 day moving average of $213.10 and a 200-day moving average of $216.69. The company has a current ratio of 1.14, a quick ratio of 0.33 and a debt-to-equity ratio of 6.77.

Boeing (NYSE:BA) last posted its quarterly earnings data 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). The firm had revenue of $24.56 billion during the quarter, compared to analyst estimates of $24.26 billion. Boeing had a net margin of 2.41% and a negative return on equity of 346.82%. Boeing’s revenue was up 8.0% compared to the same quarter last year. During the same period in the previous year, the company posted ($1.24) earnings per share. Equities research analysts predict that The Boeing Company will post -0.91 EPS for the current fiscal year.

Institutional Investors Weigh In On Boeing

Institutional investors and hedge funds have recently made changes to their positions in the business. Parrish Capital LLC increased its position in Boeing by 8.3% in the 3rd quarter. Parrish Capital LLC now owns 5,405 shares of the aircraft producer’s stock valued at $1,006,000 after acquiring an additional 414 shares during the period. QRG Capital Management Inc. raised its stake in shares of Boeing by 449.6% during the second quarter. QRG Capital Management Inc. now owns 571,042 shares of the aircraft producer’s stock worth $123,613,000 after purchasing an additional 467,137 shares during the last quarter. Envestnet Portfolio Solutions Inc. lifted its holdings in shares of Boeing by 116.8% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 72,412 shares of the aircraft producer’s stock worth $15,675,000 after purchasing an additional 39,007 shares during the period. Premier Financial Group purchased a new position in Boeing in the 2nd quarter valued at $128,000. Finally, Security National Bank of SO Dak purchased a new position in Boeing during the 2nd quarter worth $30,000. 64.82% of the stock is owned by hedge funds and other institutional investors.

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.