What's Going On With Boeing Shares On Thursday?
Portfolio Pulse from Shivani Kumaresan
Boeing Co (NYSE:BA) is trading lower in premarket after agreeing to finalize a guilty plea to a criminal fraud conspiracy charge, paying at least $243.6 million for breaching a 2021 agreement with the U.S. Justice Department. Boeing will invest $455 million over three years to enhance safety and compliance programs. An independent monitor will oversee compliance, with annual progress reports and a three-year probation period. Boeing acknowledged allowing risky work at its factories and failing to ensure accurate airplane record keeping. The Justice Department highlighted ongoing safety and quality issues, including a January incident with an Alaska Air Group Inc (NYSE:ALK) 737 MAX. Boeing stock has lost more than 15% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and Invesco Aerospace & Defense ETF (NYSE:PPA).
July 25, 2024 | 1:46 pm
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NEUTRAL IMPACT
Alaska Air Group Inc (NYSE:ALK) is indirectly impacted by Boeing's ongoing safety and quality issues, including a January incident with a 737 MAX.
While Alaska Air is mentioned in relation to Boeing's safety issues, the direct impact on its stock is less significant.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 20
NEGATIVE IMPACT
Boeing Co (NYSE:BA) is facing legal and regulatory challenges after agreeing to a guilty plea for criminal fraud, paying $243.6 million, and investing $455 million in safety programs. The stock has lost over 15% in the last year.
The guilty plea and significant financial penalties, along with ongoing safety and compliance issues, are likely to negatively impact Boeing's stock in the short term.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
IShares U.S. Aerospace & Defense ETF (BATS:ITA) may see minor fluctuations due to Boeing's legal and regulatory challenges, as Boeing is a significant component of the ETF.
Boeing's legal and regulatory challenges could cause minor fluctuations in the ETF, given Boeing's significant weight in the fund.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Invesco Aerospace & Defense ETF (NYSE:PPA) may experience minor fluctuations due to Boeing's legal and regulatory challenges, as Boeing is a significant component of the ETF.
Boeing's legal and regulatory challenges could cause minor fluctuations in the ETF, given Boeing's significant weight in the fund.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50