Boeing has finished March lower in seven of the past 10 years
It's no secret that Boeing Co (NYSE:BA) has struggled over the past year due to incidents with its commercial and defense units, as well as a workers' strike. While the stock saw a brief rally after the company's most recent quarterly report, investors should not bet on a recovery just yet, as it appeared on a list of 25 worst S&P 500 Index (SPX) names to own in March.
According Schaeffer’s Senior Quantitative Analyst Rocky White, BA averaged a 5% loss in March over the last decade, settling higher only three times during that period. The stock was last seen up 1.3% to trade at $175.27, indicating a drop of similar magnitude would place it closer to the $166 level.
Boeing stock carries a 15.2% year-over-year deficit, and has struggled to close above the $188 level despite several attempts since January. The security is today pacing for its fifth-straight close below the 20-day moving average, a trendline that has alternated between support and resistance for the past 12 months.
Options bulls aren't deterred by Boeing's recent woes, however. This is per BA's 50-day call/put volume ratio of 2.14 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 98% of annual readings. An unwinding of this optimism could fuel additional headwinds.
Meanwhile, short sellers are firmly in control, despite short interest falling 16.6% in the last two reporting periods. The 19.18 million shares sold short now make up a massive 214.7% of the stock's available float.