Key Takeaways
- Boeing Co. stock was up more than 4% in late-afternoon trading Thursday, helping offset recent declines, after the aircraft manufacturer received a large order from India’s Akasa Air.
- The recent decline in Boeing stock also attracted a surge in retail investor interest, according to Vanda Research.
- Vanda said investors are likely recalling the way the stock performed amid Boeing’s previous problems with the 737 planes and the pandemic.
Boeing Co.’s (BA) recent stock woes have been eased by a large new order for its aircraft and a surge in retail investor interest.
Boeing stock tumbled in recent weeks after a mid-flight failure on Jan. 5 led to the grounding of its 737 MAX 9 jets and an investigation from the Federal Aviation Administration (FAA). But the company’s prospects have been boosted by an order Thursday for 150 737 aircraft from India’s Akasa Air.
Vanda Research also highlighted a recent “unprecedented” surge in retail investor interest in Boeing stock. In a research note, Vanda said investors are likely recalling the way the stock performed amid Boeing’s previous problems with the 737 planes and the pandemic.
After two fatal crashes in a short time, the aircraft was grounded for over a year starting in March 2109. Boeing’s stock price hit an all-time high of $446.01 that month before the grounding but later tumbled, falling to a seven-year low of $89 in 2020 as COVID took hold and halted most commercial flight for an extended period.
Last year, the stock surged about 50% from October to a December high of $267.54 before the latest MAX 9 safety issue, so retail value investors may be viewing the current grounding and investigation as a short-term headwind for the airline’s stock.
Other Wall Street analysts are taking a more cautious tone, with Jefferies equity analysts warning of downside risk to Boeing’s free cash flow due to the unknown duration of the FAA’s investigation. Bank of America analysts said that pressure on Boeing management could increase and production also could be hampered as the probe continues.
Boeing shares were up 4.6% at $212.32 with about a half hour left in Thursday’s trading session. They were the top gainer on the Dow Jones Industrial Average.