Boeing Stock Dips After Mult-Billion Dollar Sale Falls Apart

BA just pulled back near its year-to-date breakeven level

Deputy Editor
Sep 7, 2021 at 10:12 AM
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The shares of Boeing Co (NYSE:BA) are down 1.8% at $214.26 at last check, after Ryanair, a major customer of the blue-chip plane manufacturer, ended talks for a multi-billion dollar order. Digging deeper, Ryanair walked away from a purchase of Boeing's 737 MAX 10 jets, which would have been worth tens of billion of dollars, after a dispute arose over the price of the deal. 

Today's small dip is still enough to bring Boeing stock within a hairs breadth of its year-to-date breakeven level, as the equity was up just 1.9% on the year coming into today. The 100-day moving average has guided the shares lower since a small mid-August bear gap, while a short term floor at the $216 level was just breeched. Meanwhile, longer term, BA is up 29.3% year-over-year.

An unwinding of bearish sentiment in the options pits could put some wind at Boeing stock's back. The security's Schaeffer's put/call open interest ratio (SOIR) stands higher than 98% of other readings from the past year, suggesting short-term options traders have rarely been more put-biased. 

Analysts, meanwhile, have been overwhelmingly bullish. Of the 16 in coverage, 10 call BA a "strong buy," while six say "hold." Plus, the 12-month consensus price target of $264.17 is a 21.1% premium to last night's close.

 

 
 

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