Boeing (NYSE:BA) Shares Up 1.4% - Still a Buy?

Key Points

• Boeing shares rose 1.4% to about $190.47, despite trading below both its 50-day and 200-day moving averages. Trading volume was 26% below the average.
• Commercial demand remains a key positive: Avolon ordered 140 737 MAX jets, while Southwest is reportedly considering the 787 Dreamliner for long-haul service. Boeing’s backlog totals approximately $715 billion, including $597 billion in commercial aircraft.
• Analyst sentiment is broadly favorable, with a consensus “Moderate Buy” rating and an average price target of $269.96, but concerns remain over Boeing’s debt, production delays, weak returns and slow backlog conversion. TD Cowen maintained a Buy rating while cutting its target to $240 ahead of earnings.

The Boeing Company (NYSE:BA - Get Free Report) traded up 1.4% during mid-day trading on Friday. The stock traded as high as $191.02 and last traded at $190.4670. 5,077,666 shares were traded during trading, a decline of 26% from the average daily volume of 6,857,100 shares. The stock had previously closed at $187.75.

Boeing News Roundup

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: Avolon ordered 140 Boeing 737 MAX jets as part of a 250-aircraft package split with Airbus. The firm order strengthens Boeing’s commercial backlog, although the broader transaction remains subject to approval. Boeing Lands Order For 140 737 MAX Jets
• Positive Sentiment: Southwest Airlines is reportedly leaning toward Boeing’s 787 Dreamliner as it considers launching long-haul international service. A selection would provide a potentially important new customer and support Boeing’s widebody recovery, though no final order has been announced. Southwest Airlines weighs Boeing 787 for long-haul international push
• Positive Sentiment: Boeing’s $715 billion backlog, including $597 billion in commercial airplanes, underscores robust long-term demand. Analysts also point to rising demand for infrared search-and-track systems and Boeing’s approximately $14.7 billion PAC-3 seeker contract as potential defense-growth drivers. Can Rising IRST Demand Support Boeing’s Defense Growth Outlook?
• Neutral Sentiment: Barclays launched coverage of aerospace and defense stocks and included Boeing among its recommended “modern-day industrial revolution” buys. The favorable industry view offers sentiment support, but it does not establish a specific Boeing price target. Boeing and 10 More Buys for the Modern-Day Industrial Revolution
• Negative Sentiment: TD Cowen lowered its Boeing price target to $240 from $250 ahead of earnings, citing a disorderly aerospace-sector de-rating, although it maintained a Buy rating. Investors are also weighing Boeing’s debt wall, production delays, weak returns on invested capital and the risk that its large backlog will convert to revenue slowly. TD Cowen cuts targets on Boeing and other aerospace stocks

Analyst Ratings Changes

Several brokerages have weighed in on BA. Wolfe Research upgraded Boeing from a "hold" rating to a "strong-buy" rating in a research report on Thursday, September 24th. Argus raised shares of Boeing from a "hold" rating to a "buy" rating and set a $265.00 price objective for the company in a research note on Tuesday, August 11th. Bank of America reiterated a "buy" rating and set a $270.00 target price on shares of Boeing in a report on Friday, September 18th. Weiss Ratings reissued a "sell (d+)" rating on shares of Boeing in a research note on Tuesday, July 21st. Finally, Barclays initiated coverage on Boeing in a report on Thursday. They set an "overweight" rating and a $300.00 price target on the stock. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, Boeing currently has an average rating of "Moderate Buy" and a consensus target price of $269.96.

Boeing Price Performance

The firm has a 50-day moving average of $210.22 and a 200-day moving average of $216.03. The company has a debt-to-equity ratio of 6.77, a quick ratio of 0.33 and a current ratio of 1.14. The firm has a market capitalization of $150.54 billion, a P/E ratio of 82.45 and a beta of 1.26.

Boeing (NYSE:BA - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The aircraft producer reported ($0.76) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.34) by ($0.42). Boeing had a net margin of 2.41% and a negative return on equity of 346.82%. The business had revenue of $24.56 billion for the quarter, compared to the consensus estimate of $24.26 billion. During the same period in the previous year, the company earned ($1.24) earnings per share. The company's revenue for the quarter was up 8.0% compared to the same quarter last year. As a group, analysts predict that The Boeing Company will post -0.91 EPS for the current year.

Institutional Investors Weigh In On Boeing

Large investors have recently added to or reduced their stakes in the stock. Jupiter Topco LLC bought a new stake in shares of Boeing in the second quarter worth $911,878,000. Janus Henderson Group PLC boosted its position in Boeing by 43.1% in the fourth quarter. Janus Henderson Group PLC now owns 3,907,876 shares of the aircraft producer's stock worth $840,204,000 after purchasing an additional 1,176,074 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Boeing during the 2nd quarter valued at about $747,763,000. Legal & General Group Plc bought a new stake in shares of Boeing during the 2nd quarter valued at about $710,816,000. Finally, Deutsche Bank AG purchased a new stake in shares of Boeing during the 2nd quarter valued at about $539,456,000. Institutional investors own 64.82% of the company's stock.

Boeing Company Profile

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.

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