Investors Buy High Volume of Call Options on Boeing (NYSE:BA)

Key Points

• Options traders were unusually bullish on Boeing, buying 107,071 call options on Thursday, about 16% above the stock’s typical daily call volume.
• Boeing shares fell $9.25 to $231.36 during the session, even as trading volume topped 12.4 million shares and remained well above its average volume.
• Boeing’s latest earnings beat expectations, with Q1 EPS of -$0.20 versus consensus of -$0.68 and revenue of $22.22 billion slightly above estimates, while analysts still largely rate the stock Moderate Buy with an average target of $259.60.

The Boeing Company (NYSE:BA - Get Free Report) was the target of unusually large options trading on Thursday. Traders purchased 107,071 call options on the company. This is an increase of approximately 16% compared to the typical daily volume of 92,027 call options.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on BA shares. Royal Bank Of Canada raised their price target on Boeing from $265.00 to $275.00 and gave the stock an "outperform" rating in a report on Wednesday, January 28th. Jefferies Financial Group reissued a "buy" rating on shares of Boeing in a report on Wednesday, March 4th. JPMorgan Chase & Co. raised their price target on Boeing from $245.00 to $270.00 and gave the stock an "overweight" rating in a report on Wednesday, January 28th. Citigroup lowered their price target on Boeing from $290.00 to $256.00 and set a "buy" rating for the company in a report on Thursday, April 2nd. Finally, Wolfe Research reissued an "outperform" rating and issued a $275.00 price target on shares of Boeing in a report on Thursday, April 23rd. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $259.60.

Boeing Stock Performance

NYSE:BA traded down $9.25 during trading hours on Thursday, reaching $231.36. The company had a trading volume of 12,488,193 shares, compared to its average volume of 7,173,758. Boeing has a 1-year low of $176.77 and a 1-year high of $254.35. The firm has a market cap of $182.38 billion, a PE ratio of 112.16 and a beta of 1.21. The business's 50 day moving average price is $217.63 and its 200-day moving average price is $218.30. The company has a debt-to-equity ratio of 7.42, a current ratio of 1.18 and a quick ratio of 0.35.

Boeing (NYSE:BA - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The aircraft producer reported ($0.20) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.68) by $0.48. The company had revenue of $22.22 billion during the quarter, compared to analyst estimates of $22.15 billion. During the same period in the previous year, the firm posted ($0.49) earnings per share. The company's revenue was up 14.0% compared to the same quarter last year. Research analysts forecast that Boeing will post -0.15 EPS for the current year.

Key Stories Impacting Boeing

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: Reports suggest Boeing could benefit from a large China aircraft order tied to President Trump’s Beijing summit, which would be a meaningful boost to commercial demand and future backlog. Reuters article on potential large Boeing order in China
• Positive Sentiment: Wall Street chatter around the Trump-Xi summit has lifted sentiment on Boeing, with traders and media outlets highlighting the possibility of major aircraft purchases from China. Investor's Business Daily live coverage on Boeing and Trump-Xi summit
• Neutral Sentiment: Boeing CEO Kelly Ortberg is scheduled to speak at Bernstein’s conference later this month, a routine event that may draw attention but does not by itself change the investment thesis. PR Newswire conference announcement
• Negative Sentiment: Investors are concerned that Boeing’s 737 MAX rework and inspection issues could delay deliveries, pressuring near-term revenue and cash flow timing. Quiver Quantitative article on delivery pace and 737 MAX rework
• Negative Sentiment: Recent reports showed April deliveries coming in below some expectations, reinforcing worries that Boeing still needs stronger monthly shipment pacing to meet full-year targets. Invezz article on April deliveries missing expectations

Insider Activity

In related news, EVP Uma M. Amuluru sold 1,503 shares of the firm'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 sale, the executive vice president owned 19,015 shares of the company's stock, valued at $4,445,326.70. This trade represents a 7.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Mortimer J. Buckley bought 2,230 shares of Boeing stock in a transaction on Tuesday, March 3rd. The stock was purchased at an average price of $224.20 per share, with a total value of $499,966.00. Following the completion of the acquisition, the director directly owned 4,430 shares of the company's stock, valued at $993,206. This represents a 101.36% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in BA. Vanguard Group Inc. raised its position in shares of Boeing by 5.1% during the 4th quarter. Vanguard Group Inc. now owns 70,989,438 shares of the aircraft producer's stock worth $15,413,227,000 after purchasing an additional 3,460,021 shares during the last quarter. Alyeska Investment Group L.P. raised its stake in Boeing by 245.7% in the 4th quarter. Alyeska Investment Group L.P. now owns 2,252,450 shares of the aircraft producer's stock valued at $489,052,000 after purchasing an additional 1,600,909 shares during the last quarter. Janus Henderson Group PLC raised its stake in Boeing by 43.1% in the 4th quarter. Janus Henderson Group PLC now owns 3,907,876 shares of the aircraft producer's stock valued at $840,204,000 after purchasing an additional 1,176,074 shares during the last quarter. Viking Global Investors LP raised its stake in Boeing by 31.3% in the 4th quarter. Viking Global Investors LP now owns 3,953,087 shares of the aircraft producer's stock valued at $858,294,000 after purchasing an additional 942,536 shares during the last quarter. Finally, Diamant Asset Management Inc. boosted its stake in Boeing by 19,623.0% during the 1st quarter. Diamant Asset Management Inc. now owns 872,348 shares of the aircraft producer's stock worth $173,623,000 after purchasing an additional 867,925 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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