Boeing is the second worst-performing Dow stock in 2024
Boeing Co (NYSE:BA) is dragging the Dow today, last seen down 7% to trade at $161.62 after Wells Fargo issued a downgrade on the aerospace giant to "underweight" from "equal-weight." While slashing its price target to $119 from $185, the analyst in coverage cited cash flow concerns as a catalyst for the bear note.
BA is now down 37.5% in 2024, carving a channel of lower lows all year amid a string of highly publicized incidents with the company's 737 aircrafts. Keep an eye on the $165 level, which caught a similar drawdown in early August and was a floor in late April as well.
Put traders are coming out of the woodwork. In just the first hour of trading, over 30,000 puts have changed hands, volume that's five times the average intraday amount. The weekly 9/6 160- and 165-strikes are the most popular, with buy-to-open activity detected.
Even though it's a blue chip, Boeing is the second worst-performing Dow stock this year. If this price action continues through the end of 2024, more analysts could shift their tune, considering 16 of the 23 brokerages covering BA still rate it a "buy" or better.