Home News Boeing Stock Takes Flight on New Plane Order and Retail Investor Interest

Boeing Stock Takes Flight on New Plane Order and Retail Investor Interest

by SuperiorInvest

Key takeaways

  • Shares of Boeing Co. rose more than 4% in afternoon trading Thursday, helping offset recent declines, after the planemaker received a large order from India’s Akasa Air.
  • Boeing’s recent stock decline also attracted a surge in interest from retail investors, according to Vanda Research.
  • Vanda said investors probably remember the way the stock performed amid Boeing’s earlier problems with the 737 planes and the pandemic.

Boeing Co.’s (BA) recent stock woes have been alleviated by a large new order for its planes and a surge in interest from retail investors.

Boeing shares have plummeted in recent weeks after a mid-flight failure on Jan. 5 led to the grounding of its 737 MAX 9 planes and an investigation by the Federal Aviation Administration (FAA). But the company’s prospects were boosted by an order Thursday for 150 737 jets from India’s Akasa Air.

Vanda Research also highlighted a recent “unprecedented” rise in retail investor interest in Boeing stock. In a research note, Vanda said investors probably remember how the stock performed amid Boeing’s previous problems with the 737 planes and the pandemic.

After two fatal accidents in a short time, the plane was grounded for more than a year starting in March 2109. Boeing’s stock price hit an all-time high of $446.01 that month before the suspension, but then plummeted, falling to a seven-year low of $89 in 2020, as COVID took hold and halted most of commercial flights for an extended period.

Last year, shares rose about 50% from October to a December high of $267.54 before the latest MAX 9 security issue, so retail value investors may be viewing the current suspension and investigation as a short-term headwind for the airline’s stock.

Other Wall Street analysts are taking a more cautious tone, with equity analysts at Jefferies warning of the risk of a decline in Boeing’s free cash flow due to the unknown duration of the FAA investigation. Bank of America analysts said pressure on Boeing management could increase and production could also be hampered as the investigation continues.

Boeing shares rose 4.6% to $212.32 with about a half-hour remaining in Thursday’s trading session. They were the top gainers on the Dow Jones Industrial Average.

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