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

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.

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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."

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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.

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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.

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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.

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

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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.

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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.

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