Boeing Stock Moves Higher After New Safety Directives

Year-over-year, BA is still down more than 26%

Digital Content Manager
Mar 10, 2022 at 10:12 AM
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Boeing Co (NYSE:BA) was last seen up 1.1% to trade at $180.51, after the Federal Aviation Administration (FAA) noted it is finalizing three safety directives for grounded Boeing 777 planes with Pratt & Whitney 4000 engines, following fan blade failures. The blue-chip name is now expected to outline the steps it will take to meet these directives, so the planes can return to service.

The last time we checked on Boeing stock, options bears were blasting the equity on a quarterly earnings and revenue miss. The security has been particularly volatile over the past year, with shares hitting their lowest level since November 2020 just two days ago, while the 200-day moving average has been thwarting rallies since August. Year-over-year, BA is down 26.3%.

Analysts are bullish towards the stock, with nine of the 11 in question calling it a "buy" or better, while two say "hold." In addition, the 12-month consensus target price of $255.88 is a 41.8% premium to current levels.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Boeing stock has a 50-day put/call volume ratio of 0.45 that sits higher than 92% of readings from the past year. So, while calls outnumbered puts on an overall basis, the latter have been picked up at a much quicker-than-usual clip over the last 10 weeks.

 

 

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