The American aircraft manufacturer traded moderately higher after it disclosed the projected number of plane orders before the year ends. After the solid performance of the stock in the third quarter, the stock slid in the following sessions, but eventually a recovery was seen before the week ended on Friday. The gains were extended in the morning session as the stock settled at the $147 level. Following the positive notion over the stock movement, Beacon Financial Group raised its stake in the company, according to its most recent 13F filing with the SEC. The analysts also provided a new price target for the stock. Will the Boeing Company continue to escalate?
Boeing Stock Movement
Boeing reported a successful third quarter financial results last October. As expected the stock made a jump after the release of the report as the investors got hyped with the upbeat notion on the stock. Boeing traded from 138.39 and reached the peak at 146.18 on the earnings result hysteria. With the sustenance of growth of the commercial aviation and the solid support from the key defense and space programs, Boeing made $3.2 billion operating cash and delivered 188 airplanes in the said period.
During the previous session, the stock went up 0.71 percent to $146.35 after opening at $145.60. Boeing had a session low of 144.46 and a session high of 146.60 in a tight trading range. The company had a price earnings ratio of 22.26 and a dividend yield of 2.98 percent with a market capitalization of 89.64 billion. As the Bollinger Band gets narrower, the stock is exposed to low volatility, which can take the stock between $146 to $147 price levels at the end of the day.
Judging the stock movement of Boeing, it remained close to its third quarter peak. The stock made another leap at 149.91 from the previous week; however, the gains were challenged as the target number of deliveries was speculated of failing after the cancellations this year. Based on the reports, Boeing has successfully delivered 462 out of the 745 estimated plane orders that the company has projected before this quarter ends.
As seen in the chart, the stock was locked in at 144.39 before it climbed to 146 levels. It stood above its 20-day moving average of 146.19 but it failed to cross its 50-day SMA of 147.21. If the bullish track remains, Boeing can go back to its November peak. The FSM group of analysts has set a new price target for the stock at 146.65. The renewed reports on the number of deliveries can lift the stock further. Randy Tinseth, a vice president and head of marketing at Boeing Commercial Airplanes, reminded the market that the company’s sales campaigns are currently at work and reiterated the strength of aircraft demand.
More Plane Orders
Brushing off the negative views over the company’s demand and production concerns, Boeing announced the need for over 1, 020 new aircraft in the Oceania area in the next two decades. The region will likely go after with fuel-efficient jets to change the large and wide bodies units in the face of fleet modernization. The company projects this bulk order to cost $160 billion and expects that the Oceania fleet will increase from 520 to 1,050 over the next twenty years.
In line with this, Dr. Dinesh Kestar, senior vice president for Asia Pacific and India Sales, estimated that the world airlines may need 39,620 new airplanes worth $5.9 trillion at the 60th Assembly of Presidents of the Association of Asia-Pacific Airlines (AAPA) held in Manila, Philippines. It was definitely a beneficial outlook for the premier aircraft manufacturers amid the economic uncertainties globally.
Meanwhile, Beacon Financial Group increased its stake by 23.9 percent which totaled in $581,000 worth of shares based on its most recent filing with the Securities and Exchange. Other institutional investor also increased their respective shares in the company, including Squarepoint Ops LLC, Ladenburg Thalmann Financial Services Inc. and Logan Capital Management.