Boeing Stock Price Rises Slightly – Is It Time to Invest?

On December 27, 2024, Boeing Company (NYSE: BA) saw a modest 0.1% increase in its stock price during mid-day trading. While the uptick is minor, the stock’s recent activity and analyst ratings have reignited discussions about its investment potential. Here’s a closer look at Boeing’s current standing and what analysts are saying about the stock.

Boeing Stock Performance Overview

• Trading Activity:
  The stock peaked at $181.43 and last traded at $180.62, with a significant drop in trading volume to 1.8 million shares, compared to its average volume of 9.3 million shares.
• Recent Earnings Report:
  Boeing reported a quarterly loss of $10.44 per share, slightly missing analysts’ expectations of -$10.34. Revenue for the quarter came in at $17.84 billion, down 1.5% year-over-year.
• Stock Trends:
  • 50-Day Moving Average: $157.72
  • 200-Day Moving Average: $165.69

Wall Street Analysts Weigh In

Analyst ratings for Boeing reflect a mix of perspectives, with some seeing long-term potential despite recent challenges:

1. Citigroup:
   • Rating: Buy
   • Target Price: Reduced from $224 to $209
2. TD Cowen:
   • Rating: Buy
   • Target Price: Reduced from $200 to $190
3. Jefferies Financial Group:
   • Rating: Buy
   • Target Price: Reduced from $270 to $240
4. Wells Fargo & Company:
   • Rating: Underweight
   • Target Price: Reduced from $86 to $85
5. Benchmark:
   • Rating: Buy
   • Target Price: $250

Consensus:
According to MarketBeat, Boeing holds a “Moderate Buy” rating, with a consensus price target of $190.11. While analysts remain optimistic, some express caution due to the company’s financial struggles and market conditions.

Institutional Investor Activity

Institutional investors continue to adjust their positions in Boeing, signaling mixed confidence:

• Notable Purchases:
  • RPg Family Wealth Advisory LLC and Cedar Wealth Management LLC recently acquired stakes in Boeing.
• Hedge Fund Ownership:
  • Institutional investors hold 64.82% of Boeing’s stock, reflecting strong, albeit cautious, backing from the financial community.

Key Challenges for Boeing

1. Earnings Struggles:
   Boeing continues to report losses, with a projected -16.18 EPS for the fiscal year.
2. Declining Revenue:
   The 1.5% decline in quarterly revenue indicates ongoing difficulties in maintaining growth.
3. Global Market Headwinds:
   Economic uncertainties, supply chain challenges, and rising competition in the aerospace sector add pressure to Boeing’s performance.

Why Some Analysts Still Believe in Boeing

Despite current struggles, Boeing’s diversified business model and leadership in aerospace keep it on analysts’ radars:

• Strong Market Presence:
  Boeing operates in commercial airplanes, defense, space, and global services, offering a balanced portfolio.
• Potential Rebound Opportunities:
  Analysts see opportunities for recovery as global travel demand rises and defense spending increases.

Should You Invest in Boeing Now?

Pros:

• The current price provides a potential entry point for long-term investors.
• Analysts remain optimistic, with several assigning a “Buy” rating.
• Institutional support and diversification across industries bolster its resilience.

Cons:

• Financial losses and declining revenue signal short-term challenges.
• Reduced price targets reflect uncertainty about immediate growth prospects.

Disclaimer: Always consult with a financial advisor before making investment decisions.