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.”
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?”
Boing shares fell 18% on Wednesday, March 11, 2020, hitting a 52-week low at $187. These news made the Boing stock plunge:
“JP Morgan analysts have given up on their long-term “overweight” call on Boeing Co shares, cutting their price target for the company by $160 to just $210 dollars in a note to clients on Thursday.
The bank, which now rates Boeing “neutral”, said the added hit from the coronavirus to airlines made it impossible to stick with its call that investors should wait out the grounding of the company’s 737 MAX planes this year.
Boeing stock falls 18% after customers canceled orders for the MAX airplane
“Boeing announced a number of MAX order cancellations when it provided its monthly update on Wednesday. Air Canada (AC.Canada) canceled 11 MAX jets. Japan Investment Adviser canceled another 10 MAX jets. Other customers converted MAX orders into different aircraft, such as Boeing 787s. The overall net February order number was minus 28.”
Shares of The Boeing Company (BA) closed at 377.14+1.73 (+0.46%) on March 13, 2019. The stock most probably will experience increased volatility after the recent news of the deadly accident and orders to ground the Boeing 737 Max 8&9 planes even in the US. The stock market will anticiapte the solution by Boeing.
Boeing technical analysis
The stock was pressured but still it is above the 200-day moving average.
On March 13, 2019 shares of Boeing witnessed volatility. This may continue until the company provides an official solution explanation.
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