Boeing (NYSE:BA) Stock Falls 1.5% - Here's Why

Key Points

• Boeing shares fell 1.5% to approximately $189.81 amid trading volume above average, despite several favorable company developments.
• Boeing secured a potential $14.7 billion, seven-year PAC-3 missile seeker agreement with Lockheed Martin, adding to recent fighter-program wins and strengthening its defense backlog.
• The FAA determined that a newly identified 737 MAX software issue does not pose a flight-safety concern, while analysts maintain a broadly positive outlook with a “Moderate Buy” consensus and an average price target of $270.95.

The Boeing Company (NYSE:BA - Get Free Report)'s stock price traded down 1.5% during trading on Tuesday. The company traded as low as $189.33 and last traded at $189.8130. Approximately 7,643,805 shares were traded during trading, an increase of 12% from the average daily volume of 6,844,951 shares. The stock had previously closed at $192.72.

Boeing News Roundup

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: Boeing received a seven-year agreement from Lockheed Martin worth up to approximately $14.7 billion to accelerate production of PAC-3 Missile Segment Enhancement seekers. The deal would triple output and strengthens Boeing’s defense backlog, although some terms remain subject to finalization. Reuters PAC-3 contract article
• Positive Sentiment: The PAC-3 award follows Boeing’s wins for the Air Force F-47 and Navy F/A-XX sixth-generation fighter programs, potentially giving the company a stronger long-term position in U.S. defense and supporting future revenue visibility. Boeing fighter contract article
• Positive Sentiment: The FAA determined that a recently identified 737 MAX software issue is not a flight-safety concern, reducing near-term regulatory risk and preserving a potential path toward 737 MAX 10 certification. Jefferies reportedly maintained a Buy rating with a $265 price target. FAA clears Boeing software issue article

Analysts Set New Price Targets

Several analysts have issued reports on the company. Barclays downgraded Boeing from an "equal weight" rating to an "underweight" rating in a research note on Tuesday, August 11th. BNP Paribas Exane upgraded Boeing from an "underperform" rating to an "outperform" rating and boosted their target price for the company from $230.00 to $300.00 in a research note on Monday, August 3rd. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Boeing in a research note on Tuesday, July 21st. Jefferies Financial Group cut their price objective on shares of Boeing from $295.00 to $265.00 and set a "buy" rating on the stock in a research report on Monday, September 21st. Finally, Robert W. Baird set a $300.00 price target on shares of Boeing in a research note on Wednesday, July 29th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $270.95.

Boeing Trading Down 1.5%

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 fifty day moving average price of $212.06 and a 200 day moving average price of $216.29. The company has a market cap of $150.02 billion, a price-to-earnings ratio of 82.17 and a beta of 1.26.

Boeing (NYSE:BA - Get Free Report) last issued its earnings results on Tuesday, July 28th. The aircraft producer reported ($0.76) earnings per share 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 analyst estimates of $24.26 billion. Boeing had a negative return on equity of 346.82% and a net margin of 2.41%.Boeing's quarterly revenue was up 8.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($1.24) earnings per share. As a group, equities analysts predict that The Boeing Company will post -0.91 EPS for the current fiscal year.

Hedge Funds Weigh In On Boeing

A number of hedge funds and other institutional investors have recently bought and sold shares of BA. Jupiter Topco LLC acquired a new stake in Boeing during the 2nd quarter valued at $911,878,000. Janus Henderson Group PLC raised its position in shares of Boeing by 43.1% in the fourth 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 period. Bank of New York Mellon Corp bought a new position in shares of Boeing in the second quarter valued at about $747,763,000. Legal & General Group Plc acquired a new stake in shares of Boeing during the 2nd quarter worth about $710,816,000. Finally, Deutsche Bank AG acquired a new stake in shares of Boeing during the 2nd quarter worth about $539,456,000. Institutional investors own 64.82% of the company's stock.

About Boeing

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.