Boeing Back in Headlines on Heels of Moody's Slam

Boeing has struggled for more than 12 months to maintain positive ground

Managing Editor
Dec 19, 2019 at 1:21 PM
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Controversial airplane maker Boeing Co (NYSE:BA) is once again making headlines today, riding on the back of news investor service Moody's cut its debt rating. Specifically, the firm has cut Boeing to "A3," or four levels above "speculative grade." Moody's cited the volatile drama and fatal consequences of its 737 Max jet as the catalyst. BA looks to have recovered since its early morning drop, and is now trading modestly higher, up 0.3% at $331.74. 

It comes as no surprise that Boeing stock has had a rough go on the charts in 2019. Just this past Tuesday, Dec. 17, the equity touched a four-month low of $320.61, and is now clinging to its year-over-year breakeven mark. Overhead pressure has been seen at the formerly supportive 10-day moving average -- a familiar pattern for the shares.

Analysts continue to remain split regarding the stock's future, with eight still sporting a tepid "hold" recommendation, and the remaining seven carrying a "strong buy." Regardless, the stock looks to have been a good target for premium buyers in the past year, based on its Schaeffer's Volatility Scorecard (SVS) of 88 (out of 100). In other words, the shares have regularly made bigger moves than options traders were pricing in during the last 12 months.

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