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Stock of Boeing Hits 17-month Low as Bad News Keeps Coming

April 10, 2024
minute read

Boeing Co. shares continued their descent on Wednesday, approaching levels not seen in over a year as the aerospace giant grapples with mounting concerns over safety controls.

Vertical Research Partners analyst Robert Stallard summed up the situation succinctly, remarking, "Just when you thought things couldn’t get any worse at Boeing, they have."

The stock, identified by the ticker BA, fell by 2.1% during morning trading, extending its decline to 9.7% over an eight-session losing streak. This streak is shaping up to be the longest since the nine-day period ending on September 13, 2023, potentially leading the stock to close at its lowest price since November 2022.

The ongoing sell-off follows reports emerging late Tuesday regarding an investigation by the Federal Aviation Administration into claims made by a Boeing whistleblower regarding alleged assembly and safety shortcuts with 787 aircraft.

Senator Richard Blumenthal (D-CT), chairman of the U.S. Senate Permanent Subcommittee on Investigations, announced Tuesday night that the allegations are under scrutiny, requesting the appearance of outgoing Chief Executive Dave Calhoun at a hearing scheduled for April 17.

Furthermore, Boeing reported on Tuesday the fewest quarterly aircraft deliveries in nearly three years, significantly below Wall Street's expectations.

Stifel Nicolaus analyst Bert Subin noted that while he anticipates improvements in the delivery figures this year, attributing the issue more to production challenges than a lack of demand, the data does not alter the negative outlook for free cash flow. Subin maintained his buy rating on the stock but revised his price target down to $260 from $270. Nonetheless, this adjusted target suggests a 49% upside potential from current levels.

Boeing's stock has experienced a substantial decline of 33.1% year-to-date, making it the worst-performing stock in the S&P 500 index this year, in contrast to the index's 8.1% gain year-to-date.

Eric Ng
Eric Ng
John Liu
Editorial Board
Bryan Curtis
Adan Harris
Managing Editor
Cathy Hills
Associate Editor

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