Boeing Co Stock Performance In August

After the slump in United States markets, Boeing Co. stock has declined by 8.85% over the past 30 days. The stock was not able to recover from the fall and closed at $133.84 on Tuesday after going up by 3.14%.

The Dow Jones Industrial Average Index has fell 7.32% in the past 30 days. The fall further increased the gap between the twelve month target price and actual share price. Bloomberg analysts estimate a price target of $165.68 to be attained by the end of current year.

Despite the downturn lately, analysts are still bullish on Boeing stock. 17 out of 27 analysts gave it a Buy, while 8 recommend a Hold rating.

Boeing Co. second quarter earnings for fiscal year 2015 reflects healthy earnings per share and revenues, which makes the share price to increase. The revenue for the company came in at $24.54 billion, almost 1.07% higher than the analysts’ estimates.

An earnings of $1.62 per share beat analysts’ expectations by 18.42%. The company has been surpassing analysts’ estimates for the past 8 quarters, which provides some hop to the shareholders.

Analysts expect Boeing to report $23.9 billion in revenues in third quarter of FY15, with 0.9% YoY increase. Likewise, earnings of $2.13 per share are also expected in 3QFY15 with 14.2% YoY growth.

Recently, Boeing Co. released its deliveries and order details of August, which shows that the company does not have any order for its Boeing 747 jet.

The company has been struggling to get fresh orders of 747 models. In fact, one order of four 747 aircrafts was canceled in August. Boeing has also cut its monthly production of 747 to 12 jets per year, keeping the lower demand in mind. The company needs to get more orders to keep production line of 747 running.

The company’s short interest was 15.4 million on Friday August 14. The mean trading stock fell to 2.31 million from 3.55 million.

Boeing stock can be seen as a long term stock for now, as with the present slump it might only provide low returns in the upcoming periods. However, the share price is most likely to recover in the coming months as the company increases its single aisle commercial jet production.

Boeing plans to satisfy the smaller aisle jets demand with its latest 737Max model. It has also shifted 737 productions to its smaller 737 Max model, and aims to ramp up its monthly production to soar its revenues.