Key Highlights
- Boeing shares advanced 1.26% to $216.74 in premarket trading Monday
- Philippine Airlines committed to up to 20 787 Dreamliners in new fleet expansion deal
- Riyadh Air converted options for 28 additional 787s, bringing total firm orders to 67 aircraft
- SMBC Aviation Capital placed order for 100 737 MAX aircraft, growing total portfolio to 450 planes
- Sound Shore Management established new $70.66 million stake in Q1 2024
- Q2 earnings report scheduled for July 28; Wall Street forecasts $0.27 loss per share on $23.90B revenue
Shares of Boeing (BA) advanced 1.26% during premarket hours on Monday, reaching $216.74, buoyed by a trio of substantial aircraft orders announced at the Farnborough Air Show.
The Philippine flag carrier confirmed its intent to acquire up to 20 787 Dreamliners, with 15 firm orders for the 787-10 model and options for five additional aircraft. This commitment aligns with the airline’s broader fleet modernization strategy.
Dublin-based SMBC Aviation Capital announced a substantial order for 100 737 MAX aircraft, comprising 60 units of the 737-10 model and 40 of the 737-8 variant. This marks the leasing company’s inaugural purchase of the 737 MAX 10, expanding its total 737 MAX fleet to 450 aircraft.
Notably, SMBC hedged its aircraft procurement strategy by also ordering 100 A320neo jets from Airbus at the same event, maintaining balanced relationships with both major manufacturers.
Saudi Arabia’s Riyadh Air activated options for 28 more 787 Dreamliners, with 20 being upgraded to the larger 787-10 configuration. The airline also disclosed a previously unannounced purchase of 11 Dreamliners, which will bring its confirmed 787 order total to 67 aircraft once the remaining 17 jets are formally completed.
Stephanie Pope, head of Boeing’s Commercial Airplanes division, commented that the SMBC agreement “reflects the strong demand we are seeing for the 737 MAX family’s efficiency, reliability and versatility.”
Institutional Interest Continues to Build
Beyond the order announcements, Boeing has continued drawing institutional capital. Sound Shore Management established a fresh position valued at $70.66 million during the first quarter, acquiring 355,009 shares. The aerospace manufacturer now represents 2.4% of the investment firm’s total portfolio.
Several major institutional players expanded their Boeing exposure as well. Vanguard increased its stake by 5.1% in the fourth quarter, while Janus Henderson boosted its position by 43.1%, and Viking Global expanded holdings by 31.3%. Collectively, institutional investors and hedge funds control 64.82% of Boeing’s outstanding shares.
Company insider Bradley D. Tilden, a Boeing director, purchased 1,370 shares at $218.50 per share in May, totaling $299,345 in value.
Quarterly Results Approaching
Boeing is scheduled to release second-quarter earnings on July 28. Analyst consensus anticipates a loss of $0.27 per share alongside revenue of $23.90 billion. If realized, this would represent significant progress compared to the $1.24 per share loss recorded in the year-ago period, with revenue growing from $22.75 billion year-over-year.
Analysts maintain a consensus “Moderate Buy” recommendation on the stock with an average price target of $261.53. Tigress Financial holds the highest target on Wall Street at $295, while Morgan Stanley maintains an equal-weight stance with a $250 price objective.
Technical analysis shows the stock currently trading beneath all major moving averages. The shares sit 1.9% below the 20-day simple moving average, 2.7% under the 50-day, and 1.6% beneath the 100-day. Resistance is identified at the $232 level, with support established around $214.
Boeing commenced Monday’s session at $214.38, operating within its 52-week trading range of $176.77 to $254.35.
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