Boeing reported a big loss in its latest third-quarter earnings report. Nevertheless, that didn’t stop the stock from rising more than 60 percent from its yearly lows.
Before trading on the Boeing company stock price, it’s important to learn more about Boeing’s $3.3 billion quarterly loss; the new multi-billion dollar deal to buy planes from Air India and United Airlines, analysts’ forecasts and recent hedge fund action on the stock.
Trading the BA after hours stock price involves a high level of risk; you could lose more than you bargained for by making a trade. Don’t invest in money you can’t afford to lose. Start with a small amount to determine your risk tolerance, or practice with a demo account first, to get a better understanding of trading before you start investing.You may want to take a closer look at the current stock price on eBay – it is less volatile.
BA after hours stock price: pros and cons of airline stock trading
Boeing is an aerospace company that generates revenue from several sources, divided into four categories:
- Commercial Plane Delivery;
- Defense, space and security;
- Infrastructure support;
- Boeing Capital (project finance issues).
In its most recent earnings report for the third quarter, Boeing announced a $2.8 billion loss in its Defense, Space and Security division. Boeing’s largest customer in this category is the U.S. Department of Defense, which supplies military weapons and planes.
The losses are primarily related to the Air Force One contract with the Trump administration. Since it is a fixed-price contract, it does not consider changes in the inflation rate. Due to the rising cost of materials and labor around the world, Boeing was forced to incur losses.
Nevertheless, the commercial plane delivery division increased its quarterly revenue to $6.3 billion thanks to the delivery of several new Boeing 787 commercial jets. The delivery of these planes resumed after a two-year pause by the FAA for safety reasons.
Boeing also announced a new deal with Air India, Asia’s second-largest carrier after China. The airline is preparing an order for 500 planes from Boeing and its European rival Airbus. There are also reports of a major deal with United Airlines to buy the 787 Dreamliner.
There are some concerns that could affect the company’s stock price. So you should also consider investing in eBay after hours stock price. In particular, the U.S. relationship with China. Historically, China has accounted for more than 20 percent of Boeing’s commercial revenue. However, Beijing’s recent sanctions against one of Boeing’s defense executives are affecting its revenues from China.
Boeing stock and hedge funds
Hedge funds increased their positions in Boeing stock by 201,000 shares in the last quarter, according to the latest 13F report of 462 hedge funds to the Securities and Exchange Commission.
Since the beginning of the year, there has been a general trend of increasing volumes in BA stock from quarter to quarter. However, this may be because stock price has fallen 80% from 2019 to 2020.
Boeing stock: analysts’ outlook
According to analysts polled by TipRanks, 12 of them currently recommend buying Boeing stock; 3 recommend holding and 1 recommend selling. The highest target price for Boeing stock is $281.00 and the lowest is $121.00. The average target price for Boeing stock was $198.73. This was reported on letizo.com.
Example of a trading idea in Boeing shares
An example of a trade idea in Boeing stock might be as follows:
- Buy the stock when the price rises above the $190.00 level
- Set a target at the highest analyst target price of $281.00
- Keep risk level small – no more than 5% of total account
- Period = 1-6 months
- If you buy 10 shares of Boeing stock:
- If target is met = $910.00 profit ($281.00 – $190.00 * 10 shares).
It’s important to remember that stock price is unlikely to rise in a straight line; it may even go much lower before it starts to rise, especially since Boeing stock once fell 50% this year.
So always follow a risk management strategy, one of the most important aspects of successful trading. You should always be aware of how much of a loss a trade can bring in, as well as the risks involved.