Boeing stock has a very important fundamental key metric that is negative

Boeing stock news

At 2:56 PM, Tuesday, April 7, 2020, Eastern Time (ET) Boeing stock price is at 140.63-8.14 (-5.47%). The Boeing Company (BA) stock has a very important fundamental key metric that many investors and traders seem to ignore. What is this fundamental key metric?

A negative total stockholders’ equity. Total stockholders’ equity for Boeing stock is -8,617,000 (All numbers in thousands) as of 12/30/2019, shown on the balance sheet.

Source: Yahoo Finance

Why is this negative total stockholders’ equity important for Boeing stock?

“Shareholders’ equity represents a company’s net worth (also called book value) and measures the company’s financial health. If total liabilities are greater than total assets, the company will have a negative shareholders’ equity. A negative balance in shareholders’ equity is a red flag that investors should investigate the company further before purchasing its stock.”

Source: https://www.investopedia.com/ask/answers/08/negative-shareholder-equity.asp

Why Does Negative Shareholder Equity Happen?

“When shareholder equity turns negative, frequently this is a sign of trouble. Generally you see negative equity most often when there are accrued losses that sit on the balance sheet.”

Source: https://www.mrtakoescapes.com/whats-deal-negative-shareholder-equity/

Boeing stock makes a 3-day rally

Boeing stock has made a 3-day rally, has bounced almost 75% off its lows

Boeing share price closed at $158.73+31.05 (+24.32%) on Wednesday, March 25, 2020. In the past 3 days, Boeing stock has rallied almost 75%. BA stock price was about $90 three days ago. At 8:24 Thursday, March 26, 2020, Eastern Time (ET), in the pre-market trading BA stock price is at $162.00 +3.36 (2.12%).

Boeing stock news

“The promise of a $2 trillion stimulus program was received with widespread relief across Wall Street, none more so than by investors of beleaguered airline Boeing (BA). BA stock jumped over 60% in the past 3 trading sessions. Yet, even following the surge, Boeing’s share price is down by 50% year-to-date. So, following months of the stock’s decline, is Boeing finally on the mend?”

Source: https://finance.yahoo.com/news/boeing-presses-survival-mode-analysts-205142525.html

Boeing (BA) stock daily chart
Boeing (BA) stock daily chart

Boeing stock is up today more than 15%

Boeing stock price today

At 12:01 PM, Tuesday, March 24, 2020, Eastern Time (ET) Boeing stock price is at 123.55+17.93 (+16.98%). The news related to this jump for Boeing stock price is:

“Boeing Co. (BA) shares surged higher Tuesday after it stuck to forecasts for mid-year return for the 737 MAX and investors bet a Senate coronavirus stimulus bill could steer billions towards the troubled planemaker.

Boeing CEO David Calhoun told CNBC that he still expects the flagship plane, which was grounded last year following two fatal crashes that took the lives of 346 people, to get FAA approval to return to service in early summer. The current Senate relief package, which could reach $2.5 trillion, is also likely to provide loan guarantees and grants to the U.S. aviation and aerospace industries, which have been ravaged by the global coronavirus pandemic.

“We’re very close to the finish line,” Calhoun said of the 737 MAX return, adding that there were “a lot of options for us in the private markets, but the credit markets have to be open” when asked about the planemaker’s request for $60 billion in financial aid. “

Source: https://www.thestreet.com/investing/boeing-surges-after-ceo-sticks-to-mid-2020-737-max-return

Boeing stock daily chart

Boeing (BA) daily stock chart, March 24, 2020
Boeing (BA) daily stock chart, March 24, 2020