NEWS BITES - NORTH AMERICA
The Boeing Company (NYSE:BA), the NYSE's largest Aerospace company by market cap, has decreased 96.0c (0.2%) from its last trading session of February 08 to close at $US403.95. Compared with the S&P 500 Index which rose 1.9 points (0.07%) in the day, the relative price change was -0.3%. The volume was 0.7 times the average daily trading volume of 4.2 million shares. Boeing Company's stock's open interest soared 18.1% from 54,100 to 63,864. Combined with the price decrease, this suggests a weak stock price. Its MCap is $US229.4 billion.
Boeing Company (NYSE:BA) institutional shareholder M&R Capital Management Inc. (CIK:0001057395) bought 15,289 shares in the quarter ended December 31, 2018 worth $US4.9 million at an estimated Volume Weighted Average Price (VWAP) of USD343.67. At the end of the quarter M&R Capital Management Inc. held 19,979 shares worth $US6.9 million.
Boeing Company (NYSE:BA) institutional shareholder Blackrock Inc. (CIK:0001364742) sold 1,013,940 shares in the quarter ended December 31, 2018 worth $US325.4 million at an estimated Volume Weighted Average Price (VWAP) of USD343.67. At the end of the quarter Blackrock Inc. held 32,920,554 shares worth $US11.3 billion, representing 5.80% of the issued capital of Boeing Company.
Boeing Company (NYSE:BA), announced EPS of $US18.05 for the year-ended 31 December 2018, up 28.7% from $US14.03 in the previous year-ended 31 December 2017. EPS growth from the year-ended 31 December 2016 to the year-ended 31 December 2017 was 84.4%.
|Period-ended||EPS in $US||EPS growth %|
|31 December 2018||18.05||28.7|
|31 December 2017||14.03||84.4|
BOEING COMPANY DIVIDENDS
The shares decreased 0.3% in the 2 trading sessions since the ex-dividend date of February 07. The company paid a dividend of $US2.06 per share. Based on dividends of $US8.89 per share for the trailing twelve months and the last price of $US403.95 the dividend yield is 2.2%.
Highlights in today's Report:
SECTION 1 BEARISH SIGNALS incl. Short Selling and Open Interest
SECTION 2 BULLISH SIGNALS
SECTION 3 RELATED NEWS
SECTION 4 REPORTED BUYING AND SELLING
SECTION 5 SUMMARY FINANCIALS
SECTION 6 PROFILE
SECTION 1 BOEING COMPANY BEARISH SIGNALS
1.1 Short Selling and Open Interest:
+ The current short volume is 1.1 times its own historical average of 0.1%.
+ Open Interest Trend
Same day trend: The price decreased 0.2% from $US404.91 to $US403.95; Open interest has soared 18.1% from 54,100 to 63,864. A fall in price combined with an increase in open interest suggests there is new money coming into the market from short sellers. This is a bearish signal.
|Duration||Open Interest change %||Price change %||Interpretation|
+ The 1.9% discount to 12-month high of $US411.81 against the 38.8% premium to 12-month low of $US291.01 suggests the climb might be peaking.
1.3 Overbought/Bearish/Resistance Signals:
+ The Relative Strength Index (RSI) of 86.6 has penetrated the overbought line of 70, suggesting the price gain of 13.2% in the last 14 days is unusually high.
+ The stock is overbought according to the Williams % R indicator of -13.1, suggesting the price is close to its 14-day high of $US411.81.
+ The Stochastic indicator of 91.4 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.
+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 2.5. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.
+ Total Liabilities/EBITDA of 9.1 which compares unfavourably with the Joseph Piotroski benchmark of 5.
+ Net profit margin has averaged 6.4% in the last 3 years. This is lower than the sector average of 7.3% and suggests a low margin of safety.
1.5 Overvaluation [compared with sector average]:
+ Price/Earnings of 30.1 [26.9]. We estimate Boeing Company stock is trading at a current year P/E of 21.4 and a forward year P/E of 16.3.
+ Price/Sales of 2.5 [2.1].
SECTION 2 BOEING COMPANY BULLISH SIGNALS
+ In the last three months the stock has hit a new 52-week high four times, pointing to an uptrend.
+ The present value of $US1,000 (PV1000) invested one year ago in Boeing Company is $US1,269, comprising a capital gain of $US238 and dividend reinvested of $US31.
|S&P 500 Index||995||1,015||1,034|
+ The present value of USD1,000 (PV1000) invested thirty years ago in Boeing Company is $US42,311, including a capital gain of $US35,880 and dividend reinvested of $US5,432.
+ 30 years Multiplier in USD = 42.311x
+ Compound Annual Growth Rate (CAGR) in USD = 13.2%
High Performance Indicators and rank of Boeing Company in the NYSE market:
|Description||BA Value||Rank In Market|
|Today's Trading Turnover||$US1.2 billion||In Top 1%|
|Price/MAP50||1.17||In Top 5%|
|Price/MAP200||1.16||In Top Quartile|
|% Prem to Vol Wtd Price||6.8||In Top Quartile|
|Return on Assets [ROA] %||8.9||In Top Quartile|
+ The relative yield of BA, defined by its yield of 2.2%, divided by average yield of dividend yielding stocks in the S&P 500 Index of 1.7% is 132.5%. This suggests Boeing Company stock is undervalued in dividend yield terms.
+ Brandirectory have estimated Boeing Company's brand value at $US9.2 billion. The Brand Value represents 4.2% of the estimated Enterprise Value of $US220.6 billion.
Quarterly Trend in Revenue, Net Profit and Net Profit Margin:
+ Net Profit margin is positive and has seen consecutive rises in recent quarters. [All figures in %]
|Qtr-ended||Revenue Growth||Net Profit Growth||Net Profit Margin|
|Sep 18 [Q3]||3.7||7.6||88.1|
|Jun 18 [Q2]||3.1||-11.3||9.1|
2.3 Undervaluation [compared with sector average]:
+ Year-on-Year Earnings Growth of 76.5% [20.3%].
+ Price/Earnings/Growth of 0.4 [1.3].
+ Return on Assets 8.9% [6.2%].
+ Return on Capital Employed 27.9% [13.9%].
+ Dividend yield of 2.2% [1.8%].
2.4 Aggregate Volumes and Prices:
[Volume Index or VI in brackets; 1 is average]
+ New York: BA.NYSE 3,065,000 [VI of 0.7] volume 99.89% of aggregate. Price: $US403.95.
+ Xetra: BCO.ETR 2,014 [VI of 12.4] volume 0.07% of aggregate. Price: EUR360.11. Using the current exchange rate of EUR1 equals 1.1324USD, The shares are at a 0.9% premium to the close price on New York.
+ Aggregate volume: there were 3.1 million shares of Boeing Company worth $US1.2 billion traded today. The aggregate volume was 0.7 times average trading of 4.2 million shares.
The turnover rate in the 12 months to date was 159.6% (or a turnover period of 7 months). This average length of ownership of the stock at 1.1 times the average holding period of 7 months for stocks in the S&P 500 Index suggests a larger number of speculators on the share register, making it less safe for long-term investors.
2.5 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the real rate of return has averaged 37.2%. The Moving Annual Return has been positive in 4 of the last 5 years. An investment a year ago in BA would have produced a return of 26.5%.
|BA||Close (USD)||Dividends (USD)||Capital Gain / (Loss) %||% Yield||Annual Return %|
|1 Yr ago||326.39||7.39||104.4||4.6||109.0|
|2 Yrs ago||159.69||4.36||39.5||3.8||43.3|
|3 Yrs ago||114.45||4.73||(18.8)||3.4||(15.4)|
|4 Yrs ago||140.95||3.83||19.5||3.2||22.7|
Close 5 years ago $US117.97
+ Beta: the Beta of Boeing Company stock is 1.2. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.
2.7 The Past Three Years
+ The Boeing Company (NYSE:BA), has soared $US289.50 (or 253.0%) in the past three years to close at $US403.95 today. Compared with the S&P 500 Index which has risen 46.3% over the same period, this is a relative price increase of 206.6%.
SECTION 3 BOEING COMPANY RELATED NEWS
3.1 Stock Buzz: Past Week
|Feb 11||Boeing Delivers First KC-46A Tanker to Altus Air Force Base||aviation.ca|
|Feb 11||Boeing Co (BA) Shares Bought by Hudson Capital Management LLC||theenterpriseleader.com|
|Feb 08||Boeing (BA) Given Coverage Optimism Score of 2.00||themarketsdaily.com|
|Feb 07||Boeing (NYSE:BA) price target raised to $448.00 by Jefferies Financial Group||CLNT|
|Feb 07||MA Rating for The Boeing Company (NYSE:BA) is Strong Buy||WallStreet|
|Feb 07||Polianta Ltd Invests $1.12 Million in Boeing Co (BA)||dispatchtribunal.com|
|Feb 07||The Boeing Company (BA) Can t Be More Hot. Just Reaches All-Time High||reurope.com|
|Feb 07||Boeing (BA) Received its Third Buy in a Row||smarteranalyst.com|
To view the past 45 days' Stock BUZZ on Boeing-Company(BA), click here
3.2 Analyst Recommendations: Past Week
|Date||Brokerage||Action||Past Rating||Current Rating||Prev Target||Price Target|
|Feb 05, 2019||Sanford C. Bernstein||Reiterates||Outperform||Outperform||435||459|
|Feb 04, 2019||Jefferies Financial Group||Raises Target||-||Buy||-||448|
3.3 Corporate Wires
Boeing Company (BA) issued 1 new Release this week.
February 06: Boeing Company announces dividend
Boeing Company today announced a quarterly dividend of $US2.06 per share. The ex dividend date is Thursday, February 07, 2019 and it is payable on Friday, March 01.
To view the previous 3 months' Releases in full, click here
3.4 Other News
+ BSS/News Bites:
The Boeing Company is placed 417/2645 in BSS News Bites' ranking of NYSE performers in the past year, a percentile ranking of 84.
+ Vanguard Total World Stock ETF 7582:
The stock was one of 7582 global stocks selected by Vanguard Total World Stock ETF (VT) who bought 3,870 shares in the period Nov 30, 2018 to Dec 31, 2018 worth $US1,260,066 at an estimated Volume Weighted Average Price (VWAP) of $US325.5985. As at Dec 31, 2018, the Vanguard Total World Stock ETF held 184,326 shares worth $US60,016,269 or 0.37% by value of the ETF's portfolio [Ranked 31 out of 7582 by value and 20 out of 1110 for NYSE].
SECTION 4 BOEING COMPANY REPORTED BUYING AND SELLING
4.1 Insider Selling
February 06: Boeing Company insider sells
Boeing Company (NYSE:BA) insider Timothy Keating sold 26,557 shares worth $US10,502,619 on February 04. The selling price was $US395.47.
To view the previous 3 months' Releases in full, click here
4.2 Institutional Buying and Selling Quarter Ended September 30
Total reported Institutional buying = 12,730,680 shares
Total reported Institutional selling = 17,404,576 shares
Net reported institutional selling = 4,673,896 shares
4.3 Reported Holdings of Institutions as at Sep 30, 2018
Total = 394,238,255 shares
Market Value = $US145.2 billion
SECTION 5 BOEING COMPANY SUMMARY FINANCIALS
5.1 Dividend History
+ Trailing 12 months dividend has improved from $US3.83 in 2015 to $US8.89 in 2019.
5.2 Financials Summary
|Year ended||Dec 2017||Dec 2016||Dec 2015|
|Sales (USD B)||93.4||94.6||96.1|
|Pretax (USD B)||10||5.6||7.2|
|Net (USD B)||8.2||4.9||5.2|
+ Net profit was up 67.5% from US$4.9 billion in 2016 to US$8.2 billion in 2017.
+ Earnings Per Share (EPS) was up 76.5% from $US7.61 to $US13.43.
SECTION 6 BOEING COMPANY PROFILE
The Boeing Company (Boeing) is involved in the design, development, manufacture, sale and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services. The Company operates in five principal segments: Commercial Airplanes, Boeing Military Aircraft (BMA), Network and Space Systems (N&SS), Global Services and Support (GS&S) and Boeing Capital Corporation (BCC). BMA, N&SS and GS&S comprise the Company's Integrated Defense Systems (IDS) business. The Other segment classification principally includes the activities of Engineering, Operations and Technology (EO&T), an advanced research and development organization focused on technologies, processes and the creation of new products. In December 2008, Boeing announced that it has completed its acquisition of Federated Software Group, whose engineering services and software system help track and distribute equipment and personnel for the United States Department of Defense.
6.2 Top Management
The chief executive officer and chairman is Dennis Muilenburg.
6.3 Issued Capital
Based on 567,885,000 issued shares the market capitalisation is $US229.4 billion.
Contact: +1 312 544-2000
Physical Address: 100 North Riverside Plaza, Chicago, IL,60606-1596
State/Province/Country: WA [WA], United States
Country of Incorporation: United States
Industry [NAICS]: 336411
Exchange: New York Stock Exchange
Business Sector: Industrial Goods
Industry Group: Aerospace & Defense
Industry: Aerospace & Defense
Economic Sector: Industrials
Boeing Co, Boeing Company (The)