Boeing (NYSE:BA) Shares Down 3.7% - Here's Why

Key Points

• Boeing shares fell 3.7% after trading at elevated volume, reflecting a sharp negative reaction in the market.
• Investor sentiment was pressured by a disappointing China aircraft order: reports said Boeing may sell 200 planes, but traders had hoped for a much larger deal and Beijing has not clearly confirmed details.
• Separate legal overhang from a $49.5 million jury verdict tied to a 737 Max crash added to concerns, even as analysts still hold a Moderate Buy consensus with an average target price of $259.60.

The Boeing Company (NYSE:BA - Get Free Report) dropped 3.7% during trading on Friday . The company traded as low as $220.45 and last traded at $220.6330. Approximately 9,129,655 shares were traded during trading, an increase of 26% from the average daily volume of 7,260,660 shares. The stock had previously closed at $229.21.

Key Stories Impacting Boeing

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: China’s reported agreement to buy 200 Boeing aircraft is still a meaningful commercial win and could help Boeing’s backlog and long-term sales outlook. Reuters: Trump says China to potentially buy 750 Boeing planes
• Positive Sentiment: Trump suggested the initial commitment could grow substantially, raising the possibility of a much larger follow-on order if talks progress. NYT/related coverage: Trump Announces Boeing Jet Order From China. Beijing Stays Silent.
• Neutral Sentiment: The deal remains vague, with no clear confirmation from Beijing and limited information on delivery timing, making it hard for investors to assess the financial impact. Bloomberg: Boeing Gets China Deal at Trump's Visit, With Many Questions
• Negative Sentiment: The market had been expecting a much bigger order, so the reported 200-jet commitment disappointed traders and triggered a selloff in the shares. MarketWatch: Boeing’s stock drops as Trump’s order deal with China disappoints
• Negative Sentiment: Separate headlines about a $49.5 million jury verdict tied to the 737 Max crash add to Boeing’s ongoing legal and reputational overhang. Fortune: Jury awards $49.5 million to family of 24-year-old who died in Boeing 737 Max crash in 2019

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on BA. Susquehanna reissued a "positive" rating and issued a $280.00 target price on shares of Boeing in a research report on Thursday, January 15th. Argus raised shares of Boeing to a "hold" rating in a research note on Monday, February 2nd. UBS Group lifted their price target on shares of Boeing from $275.00 to $285.00 and gave the company a "buy" rating in a report on Wednesday, January 28th. Jefferies Financial Group reissued a "buy" rating on shares of Boeing in a research note on Wednesday, March 4th. Finally, Tigress Financial increased their target price on Boeing from $290.00 to $295.00 and gave the stock a "buy" rating in a research report on Wednesday, April 29th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, Boeing presently has a consensus rating of "Moderate Buy" and an average target price of $259.60.

Boeing Stock Performance

The stock's 50-day moving average is $217.74 and its 200-day moving average is $218.36. The company has a current ratio of 1.18, a quick ratio of 0.35 and a debt-to-equity ratio of 7.42. The stock has a market cap of $173.92 billion, a price-to-earnings ratio of 107.10 and a beta of 1.21.

Boeing (NYSE:BA - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The aircraft producer reported ($0.20) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.68) by $0.48. The business had revenue of $22.22 billion for the quarter, compared to analysts' expectations of $22.15 billion. During the same quarter in the prior year, the firm earned ($0.49) earnings per share. Boeing's quarterly revenue was up 14.0% compared to the same quarter last year. On average, analysts expect that The Boeing Company will post -0.15 EPS for the current year.

Insider Buying and Selling

In other Boeing news, EVP Uma M. Amuluru sold 1,503 shares of the business's stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $233.78, for a total transaction of $351,371.34. Following the transaction, the executive vice president owned 19,015 shares in the company, valued at $4,445,326.70. The trade was a 7.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Ann M. Schmidt sold 6,281 shares of the company's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $243.37, for a total value of $1,528,606.97. Following the completion of the sale, the senior vice president directly owned 13,978 shares of the company's stock, valued at $3,401,825.86. The trade was a 31.00% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Boeing

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Purus Wealth Management LLC boosted its stake in shares of Boeing by 3.6% in the fourth quarter. Purus Wealth Management LLC now owns 1,177 shares of the aircraft producer's stock valued at $256,000 after purchasing an additional 41 shares during the period. West Wealth Group LLC increased its stake in Boeing by 0.6% during the 4th quarter. West Wealth Group LLC now owns 7,279 shares of the aircraft producer's stock worth $1,581,000 after buying an additional 42 shares during the period. First Heartland Consultants Inc. lifted its holdings in Boeing by 1.1% in the 4th quarter. First Heartland Consultants Inc. now owns 4,062 shares of the aircraft producer's stock worth $882,000 after buying an additional 43 shares in the last quarter. XML Financial LLC boosted its position in Boeing by 0.5% in the 4th quarter. XML Financial LLC now owns 8,905 shares of the aircraft producer's stock valued at $1,933,000 after buying an additional 43 shares during the last quarter. Finally, Global Financial Private Client LLC boosted its position in Boeing by 1.1% in the 4th quarter. Global Financial Private Client LLC now owns 4,025 shares of the aircraft producer's stock valued at $874,000 after buying an additional 44 shares during the last quarter. 64.82% of the stock is owned by institutional investors and hedge funds.

Boeing Company Profile

Boeing Company NYSE: BA is an American multinational corporation that designs, manufactures and services commercial airplanes, defense systems, and space and security technologies. Founded in 1916 by William E. Boeing in Seattle, the company today operates as an integrated aerospace and defense contractor with a global customer base. Boeing relocated its corporate headquarters to Arlington, Virginia in 2022 and maintains extensive engineering, manufacturing and service operations across the United States and around the world.

Boeing's principal lines of business include Commercial Airplanes, which produces and supports a range of jetliners used by airlines globally; Defense, Space & Security, which develops military aircraft, rotorcraft, surveillance and reconnaissance systems, satellites, and launch and missile systems; and Boeing Global Services, which provides aftermarket maintenance, training, spare parts, digital analytics and logistics support.

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