Junto Capital Management LP Cuts Holdings in The Boeing Company $BA

Key Points

• Junto Capital Management cut its Boeing stake by 37% in the second quarter, selling 117,240 shares and retaining 199,292 shares valued at approximately $43.1 million. Institutional investors collectively own 64.82% of Boeing.
• Boeing’s turnaround showed mixed signals: free cash flow turned positive, but August deliveries fell to 51 aircraft from 57 a year earlier, with lower 787 handovers posing a challenge to cash-flow recovery.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $272.58, despite Boeing’s latest quarterly EPS missing estimates and shares trading down 2%.

Junto Capital Management LP decreased its holdings in The Boeing Company (NYSE:BA - Free Report) by 37.0% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 199,292 shares of the aircraft producer's stock after selling 117,240 shares during the period. Junto Capital Management LP's holdings in Boeing were worth $43,141,000 as of its most recent SEC filing.

Other hedge funds have also recently modified their holdings of the company. XML Financial LLC increased its holdings in Boeing by 0.5% in the 4th quarter. XML Financial LLC now owns 8,905 shares of the aircraft producer's stock worth $1,933,000 after buying an additional 43 shares in the last quarter. B.O.S.S. Retirement Advisors LLC lifted its stake in Boeing by 1.4% during the 1st quarter. B.O.S.S. Retirement Advisors LLC now owns 3,175 shares of the aircraft producer's stock valued at $632,000 after acquiring an additional 44 shares during the period. Horizon Bancorp Inc. IN boosted its holdings in shares of Boeing by 3.1% during the 1st quarter. Horizon Bancorp Inc. IN now owns 1,493 shares of the aircraft producer's stock valued at $297,000 after acquiring an additional 45 shares during the last quarter. Meadowbrook Advisors Group LLC boosted its stake in shares of Boeing by 2.5% in the 1st quarter. Meadowbrook Advisors Group LLC now owns 1,955 shares of the aircraft producer's stock worth $389,000 after buying an additional 47 shares during the last quarter. Finally, Davis R M Inc. boosted its position in Boeing by 1.5% in the fourth quarter. Davis R M Inc. now owns 3,141 shares of the aircraft producer's stock worth $682,000 after purchasing an additional 47 shares during the last quarter. Hedge funds and other institutional investors own 64.82% of the company's stock.

Key Boeing News

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: Boeing’s free cash flow has turned positive, an important milestone in its turnaround. Investors will be watching whether stronger cash generation can be sustained through higher aircraft deliveries, improved production efficiency, and reduced working-capital needs. Boeing's free cash flow turned positive
• Positive Sentiment: Commentary from Jim Cramer points to a potential manufacturing recovery benefiting aerospace companies, including Boeing. That outlook could support BA if production and delivery momentum improve. Jim Cramer discusses manufacturing recovery
• Neutral Sentiment: Archer Aviation’s reported acquisition of Boeing-related businesses Wisk Aero, Insitu, and SkyGrid could help Boeing monetize noncore assets and sharpen its strategic focus, although it may also reduce exposure to potentially valuable future-mobility businesses. Archer Aviation acquisition of Boeing businesses
• Negative Sentiment: Boeing delivered 51 aircraft in August, down from 57 a year earlier, while 787 Dreamliner handovers declined. The softer widebody performance is significant because accelerating deliveries are central to Boeing’s cash-flow recovery and efforts to reduce its substantial debt burden. Boeing August deliveries dip as 787 handovers fall
• Negative Sentiment: A fatal Miami cargo-plane crash involving a 1994-built Boeing 767 operated by 21 Air has increased attention on Boeing aircraft and freighter safety. The investigation is ongoing, and no cause has been established, but additional scrutiny could create reputational or regulatory risk. Boeing 767 Miami runway accident

Boeing Trading Down 2.0%

Shares of BA stock opened at $206.62 on Thursday. 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 stock has a market capitalization of $163.30 billion, a price-to-earnings ratio of 89.44 and a beta of 1.21. The Boeing Company has a 12-month low of $176.77 and a 12-month high of $254.35. The stock's 50-day moving average price is $219.23 and its 200-day moving average price is $219.46.

Boeing (NYSE:BA - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The aircraft producer reported ($0.76) EPS for the quarter, missing analysts' consensus estimates of ($0.34) by ($0.42). The firm had revenue of $24.56 billion for the quarter, compared to the consensus estimate of $24.26 billion. Boeing had a net margin of 2.41% and a negative return on equity of 346.82%. Boeing's quarterly revenue was up 8.0% on a year-over-year basis. 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 -0.87 EPS for the current fiscal year.

Analyst Ratings Changes

BA has been the topic of a number of recent research reports. BNP Paribas Exane raised Boeing from an "underperform" rating to an "outperform" rating and raised their target price for the stock from $230.00 to $300.00 in a report on Monday, August 3rd. William Blair restated an "outperform" rating on shares of Boeing in a research note on Tuesday, July 28th. Robert W. Baird set a $300.00 price objective on shares of Boeing in a report on Wednesday, July 29th. Barclays cut shares of Boeing from an "equal weight" rating to an "underweight" rating in a research report on Tuesday, August 11th. Finally, Argus raised shares of Boeing from a "hold" rating to a "buy" rating and set a $265.00 target price on the stock in a report on Tuesday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, six have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $272.58.

Boeing Profile

The Boeing Company is a global aerospace company that designs, manufactures and services commercial airplanes, military aircraft, satellites, space systems and other aerospace products. Its principal business areas include commercial airplanes, defense and security, and aftermarket services that support aircraft operations throughout their life cycles.

Boeing's commercial portfolio includes the 737, 767, 777 and 787 families of jetliners, while its defense and space operations provide products and services for the U.S.

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