Boeing (NYSE:BA) Stock Price Down 6.8% - Time to Sell?

Key Points

• Boeing shares fell 6.8% to about $184.66 on unusually heavy trading volume, bringing the stock near its 52-week low and well below its 50- and 200-day moving averages.
• The FAA delayed certification of Boeing’s 737 MAX 10 while it investigates a software bug that could affect automated landing guidance during a go-around. The issue has renewed safety concerns and may disrupt certification, production and delivery timelines.
• Analyst sentiment remains mixed but leans positive, with a consensus “Moderate Buy” rating and an average price target of $270.95. However, Boeing recently missed quarterly EPS expectations, and its financial profile includes high leverage and negative return on equity.

Shares of The Boeing Company (NYSE:BA - Get Free Report) were down 6.8% on Monday. The stock traded as low as $184.01 and last traded at $184.6630. Approximately 17,829,702 shares traded hands during mid-day trading, an increase of 165% from the average daily volume of 6,728,088 shares. The stock had previously closed at $198.07.

More Boeing News

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: FTAI Aviation agreed to acquire 27 Boeing 737-700 aircraft from WestJet, indicating continued demand for Boeing’s installed fleet and potentially supporting aftermarket and leasing activity. However, the transaction involves used aircraft and is not a direct order for new Boeing jets. FTAI acquires 27 Boeing 737-700s
• Neutral Sentiment: Analyst commentary remains comparatively constructive, including a recent Wolfe Research upgrade and published price targets materially above the current trading level. These views provide some support, but they may be overshadowed by the latest regulatory development. Boeing upgraded at Wolfe Research
• Negative Sentiment: The FAA said it will not certify Boeing’s largest 737 MAX variant, the MAX 10, until it evaluates a software bug. The issue could disable automated landing guidance if pilots conduct a go-around, creating uncertainty around certification timing and future deliveries. FAA delays Boeing 737 MAX 10 certification
• Negative Sentiment: Boeing had notified airlines about the software problem in August, but broader media coverage has renewed concerns over flight-safety oversight and the possibility of additional inspections, software fixes or operational restrictions on some MAX aircraft. Boeing flags 737 MAX navigation software glitch
• Negative Sentiment: Investors are treating the episode as a potential setback to Boeing’s recovery because any added FAA review could complicate production normalization, certification milestones and delivery expectations. The stock has consequently decreased and is trading near its 52-week low, with unusually heavy volume. FAA says software issue will delay Boeing 737 MAX certification

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. Robert W. Baird set a $300.00 target price on shares of Boeing in a report on Wednesday, July 29th. Citigroup lowered shares of Boeing from a "buy" rating to a "sell" rating in a report on Tuesday, August 11th. Argus upgraded shares of Boeing from a "hold" rating to a "buy" rating and set a $265.00 price target for the company in a report on Tuesday, August 11th. Btg Pactual set a $260.00 price target on shares of Boeing in a research report on Tuesday, July 14th. Finally, Tigress Financial increased their price objective on shares of Boeing from $295.00 to $305.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Boeing currently has a consensus rating of "Moderate Buy" and an average target price of $270.95.

Boeing Trading Down 6.8%

The firm has a market capitalization of $145.95 billion, a PE ratio of 79.94 and a beta of 1.21. The company has a quick ratio of 0.33, a current ratio of 1.14 and a debt-to-equity ratio of 6.77. The company's 50-day simple moving average is $214.38 and its 200 day simple moving average is $217.23.

Boeing (NYSE:BA - Get Free Report) last issued its quarterly earnings data 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). The firm had revenue of $24.56 billion during the quarter, compared to analysts' expectations of $24.26 billion. Boeing had a negative return on equity of 346.82% and a net margin of 2.41%.The firm's quarterly revenue was up 8.0% on a year-over-year basis. During the same period in the previous year, the firm earned ($1.24) EPS. As a group, sell-side analysts expect that The Boeing Company will post -0.91 EPS for the current year.

Institutional Trading of Boeing

Several hedge funds and other institutional investors have recently made changes to their positions in the business. XML Financial LLC raised its position in Boeing by 0.5% during the fourth quarter. XML Financial LLC now owns 8,905 shares of the aircraft producer's stock worth $1,933,000 after acquiring an additional 43 shares during the period. B.O.S.S. Retirement Advisors LLC lifted its holdings in Boeing by 1.4% during the first quarter. B.O.S.S. Retirement Advisors LLC now owns 3,175 shares of the aircraft producer's stock valued at $632,000 after purchasing an additional 44 shares in the last quarter. Horizon Bancorp Inc. IN grew its position in shares of Boeing by 3.1% in the first quarter. Horizon Bancorp Inc. IN now owns 1,493 shares of the aircraft producer's stock valued at $297,000 after purchasing an additional 45 shares during the period. Meadowbrook Advisors Group LLC grew its position in shares of Boeing by 2.5% in the first quarter. Meadowbrook Advisors Group LLC now owns 1,955 shares of the aircraft producer's stock valued at $389,000 after purchasing an additional 47 shares during the period. Finally, Howe & Rusling Inc. increased its stake in shares of Boeing by 2.5% during the first quarter. Howe & Rusling Inc. now owns 2,024 shares of the aircraft producer's stock worth $403,000 after purchasing an additional 49 shares in the last quarter. Hedge funds and other 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.

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