Boeing (NYSE:BA) Stock Bumped Down to Sell by Wall Street Zen

Key Points

• Wall Street Zen downgraded Boeing from “Hold” to “Sell,” although broader analyst sentiment remains “Moderate Buy,” with a consensus price target of $266.96.
• Boeing shares opened at $188.36, while the company reported a quarterly EPS loss of $0.76 versus the expected $0.34 loss; analysts project a full-year loss of $1.08 per share.
• Institutional investors own 64.82% of Boeing, but concerns remain over its high debt, weak liquidity, and ability to turn production growth into sustainable cash flow.

Boeing (NYSE:BA - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday, Wall Street Zen reports.

A number of other research analysts have also issued reports on BA. William Blair restated an "outperform" rating on shares of Boeing in a report on Wednesday, September 30th. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Boeing from $244.00 to $248.00 and gave the company a "hold" rating in a report on Wednesday, July 29th. Cantor Fitzgerald downgraded Boeing to a "neutral" rating in a research note on Tuesday, August 11th. Royal Bank Of Canada cut their price target on Boeing from $265.00 to $235.00 and set an "outperform" rating on the stock in a report on Thursday, October 15th. Finally, Citigroup downgraded shares of Boeing from a "buy" rating to a "sell" rating in a report on Tuesday, August 11th. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $266.96.

Boeing Trading Up 0.4%

NYSE BA opened at $188.36 on Friday. The company has a quick ratio of 0.33, a current ratio of 1.14 and a debt-to-equity ratio of 6.77. The stock has a market capitalization of $148.87 billion, a P/E ratio of 81.54 and a beta of 1.26. Boeing has a 52-week low of $176.77 and a 52-week high of $254.35. The firm has a 50-day moving average price of $200.75 and a 200 day moving average price of $215.14.

Boeing (NYSE:BA - Get Free Report) last released its earnings results 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). Boeing had a negative return on equity of 346.82% and a net margin of 2.41%. The business had revenue of $24.56 billion for the quarter, compared to analyst estimates of $24.26 billion. During the same quarter in the previous year, the firm posted ($1.24) EPS. The business's revenue for the quarter was up 8.0% on a year-over-year basis. Equities research analysts expect that Boeing will post -1.08 EPS for the current year.

Institutional Investors Weigh In On Boeing

Several hedge funds have recently bought and sold shares of the business. Compass Ion Advisors LLC acquired a new position in Boeing during the 3rd quarter worth $217,000. Guardian Investment Management grew its stake in shares of Boeing by 2.9% in the 3rd quarter. Guardian Investment Management now owns 9,625 shares of the aircraft producer's stock valued at $1,791,000 after purchasing an additional 275 shares during the period. Tarbox Family Office Inc. lifted its position in shares of Boeing by 149.5% during the 3rd quarter. Tarbox Family Office Inc. now owns 12,039 shares of the aircraft producer's stock worth $2,240,000 after buying an additional 7,213 shares during the period. Madrona Financial Services LLC boosted its stake in Boeing by 4.0% in the 3rd quarter. Madrona Financial Services LLC now owns 8,288 shares of the aircraft producer's stock valued at $1,542,000 after buying an additional 318 shares in the last quarter. Finally, Ervin Investment Management LLC increased its position in shares of Boeing by 11.0% during the 3rd quarter. Ervin Investment Management LLC now owns 2,225 shares of the aircraft producer's stock worth $414,000 after purchasing an additional 220 shares in the last quarter. 64.82% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Boeing

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: The FAA has granted final certification for Boeing’s long-delayed 737 MAX 10, removing a significant hurdle for deliveries and allowing the aircraft to compete more directly with Airbus’ A321neo. The approval could support Boeing’s backlog, revenue, cash flow, and long-term competitiveness. Boeing wins FAA certification for 737 MAX 10
• Positive Sentiment: Analysts and investors expect the MAX 10 approval, rising aircraft deliveries, and stronger commercial-services demand to improve earnings and support Boeing’s turnaround. A production recovery could also improve margins across the aerospace supply chain. Great News for Boeing Investors
• Positive Sentiment: GA-ASI, a General Atomics business, is partnering with Spirit Defense, a Boeing company, to support airframe production for the FQ-42 Vengeance Collaborative Combat Aircraft. The relationship highlights potential defense-manufacturing activity for Boeing-affiliated operations, although the financial impact was not disclosed. GA-ASI Partnering With Spirit Defense For FQ-42 CCA Production
• Neutral Sentiment: Boeing is scheduled to report third-quarter results before the market opens on October 27. Investors will focus on deliveries, free cash flow, MAX production, services demand, and management’s guidance for the recovery. Boeing Stock Preps the Runway Ahead of Earnings
• Negative Sentiment: Despite the certification win, investors remain concerned about Boeing’s high debt burden, weak liquidity metrics, supply-chain delays, negative returns on invested capital, and the company’s ability to convert production growth into sustainable cash flow. What's Going on With Boeing Shares on Friday?

Boeing Company Profile

The Boeing Company NYSE: BA is a global aerospace company that designs, manufactures and supports commercial airplanes, military aircraft, satellites, space systems and related products and services. Its offerings serve airlines, government agencies, defense organizations and other customers worldwide.

Boeing operates through three principal business areas: Commercial Airplanes, which develops and produces passenger and cargo aircraft; Defense, Space & Security, which provides military aircraft, weapons systems, satellites and space-related platforms; and Global Services, which offers parts, maintenance, training, engineering and other lifecycle support.

Founded in 1916 by William Boeing, the company has grown into one of the world's major aerospace manufacturers.

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