Boeing Company falls in weak trading with rising open interest, EPS Growth slows to 28.7% 11 February 2019

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.

INSTITUTIONAL BUYING

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.

INSTITUTIONAL SELLING

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.

ANNUAL REPORT

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-endedEPS in $USEPS growth %
31 December 201818.0528.7
31 December 201714.0384.4

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.

DurationOpen Interest change %Price change %Interpretation
1-day18.1-0.2Weak Market

1.2 Technicals:

+ 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.

1.4 Fundamentals:

+ 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

2.1 Technicals:

+ 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.

PV$10001-week1-month1-year
BA.NYSE1,0281,1871,269
S&P 500 Index9951,0151,034

+ 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:

DescriptionBA ValueRank In Market
Today's Trading Turnover$US1.2 billionIn Top 1%
Price/MAP501.17In Top 5%
Price/MAP2001.16In Top Quartile
% Prem to Vol Wtd Price6.8In Top Quartile
Return on Assets [ROA] %8.9In Top Quartile

2.2 Fundamentals:

+ 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-endedRevenue GrowthNet Profit GrowthNet Profit Margin
Sep 18 [Q3]3.77.688.1
Jun 18 [Q2]3.1-11.39.1

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%.

BAClose (USD)Dividends (USD)Capital Gain / (Loss) %% YieldAnnual Return %
Feb 11403.958.8923.82.726.5
1 Yr ago326.397.39104.44.6109.0
2 Yrs ago159.694.3639.53.843.3
3 Yrs ago114.454.73(18.8)3.4(15.4)
4 Yrs ago140.953.8319.53.222.7

Close 5 years ago $US117.97

2.6 Beta:

+ 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

News DateHeadlinePublisher
Feb 11Boeing Delivers First KC-46A Tanker to Altus Air Force Baseaviation.ca
Feb 11Boeing Co (BA) Shares Bought by Hudson Capital Management LLCtheenterpriseleader.com
Feb 08Boeing (BA) Given Coverage Optimism Score of 2.00themarketsdaily.com
Feb 07Boeing (NYSE:BA) price target raised to $448.00 by Jefferies Financial GroupCLNT
Feb 07MA Rating for The Boeing Company (NYSE:BA) is Strong BuyWallStreet
Feb 07Polianta Ltd Invests $1.12 Million in Boeing Co (BA)dispatchtribunal.com
Feb 07The Boeing Company (BA) Can t Be More Hot. Just Reaches All-Time Highreurope.com
Feb 07Boeing (BA) Received its Third Buy in a Rowsmarteranalyst.com

To view the past 45 days' Stock BUZZ on Boeing-Company(BA), click here

3.2 Analyst Recommendations: Past Week

DateBrokerageActionPast RatingCurrent RatingPrev TargetPrice Target
Feb 05, 2019Sanford C. BernsteinReiteratesOutperformOutperform435459
Feb 04, 2019Jefferies Financial GroupRaises 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 endedDec 2017Dec 2016Dec 2015
Sales (USD B)93.494.696.1
Pretax (USD B)105.67.2
Net (USD B)8.24.95.2
EPS (USD)13.437.617.44

+ 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

6.1 Activities

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.

COMPANY IDENTIFIERS

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

ISIN: US0970231058

N:BA; BA.N

PermID: 4295903076

RIC: BA.N

CIK: 12927

CUSIP: 097023105

Boeing Co, Boeing Company (The)

Source: www.BuySellSignals.com