©Reuters.Boeing (BA) stock may fall even further after members of Congress sell their shares
The recent decline in Boeing (NYSE:) stock has caused concern among investors and industry experts alike, prompting a closer look at the various factors weighing on the stock price. Masu. Against this backdrop, stock sales by lawmakers have emerged as a focus, raising questions about the timing of the sales. There are also questions about whether the decline in Boeing's stock price will widen further.
Boeing's predicament
Boeing Co.'s stock price has fallen due to a series of manufacturing accidents and safety concerns that have raised questions about the company's commitment to quality and safety standards. Those concerns extend to Boeing's important aircraft, such as the 737 Max and 787 Dreamliner, as potential systemic problems are drawing the attention of regulators and lawmakers. Boeing stock will fall 28% in 2024. In January, part of an Alaska Airlines Boeing 737 plane was blown off during a flight.
Things aren't looking good for Boeing. The Wall Street Journal reported Friday that Boeing told airlines to check the cockpit seats on its 787 Dreamliner after discovering that the cockpit seats on the Latin America flight may have been in the rear of the plane. It was reported. A sudden drop.
These manufacturing and safety issues have not only led to production delays and regulatory scrutiny, but also caused a significant loss of confidence in the company's business practices, contributing to Boeing's stock price decline.
Lawmakers sell Boeing stock
With Boeing stock under pressure, it was recently revealed that Congressman Bill Keating had sold his Boeing shares.
Mr. Keating sold between $1,000 and $15,000 of Boeing stock on February 28, according to the Capitol Trade website. He also sold between $15,000 and $50,000 worth of Boeing bonds on February 8th.
The deal has gained attention in recent days, with various X (formerly Twitter) accounts questioning the timing of the stock sale.
Boeing stock price prediction
In a recent note, Wolf Research analysts lowered their price target on Boeing from $270 to $260 per share and maintained an outperform rating. The company said it sees the stock price potentially rising 40%.
The company notes that the stock's weakness reflects the attention and uncertainty following the door plug accident on Alaska Airlines flight AS1282 in early January, while also praising Boeing's “strong cash flow growth profile.” He cited this as a reason for his bullishness on the decline in stock prices. stock.
Meanwhile, in early February, UBS lowered Boeing's price target to $275, but gave the stock a “buy” rating, saying it sees “a decline in the stock price as a buying opportunity for investors who want to focus on the medium term.” ” was maintained.
Meanwhile, BofA analysts downgraded Boeing to neutral in January following the Alaska Airlines incident. They said at the time that “Boeing has come under the spotlight of significantly increased regulatory oversight.”
“With the subsequent grounding and FAA-mandated production rate freeze at current levels, Boeing will achieve its 2025/2026 production, delivery and FCF goals outlined at its 2022 Investor Day,” the bank said. There is a high possibility that it will not be possible.”
