Boeing shares close lower on Tuesday, company reportedly moving spare parts between distribution centres ahead of Brexit

According to a report by Reuters on Tuesday, citing an executive from Boeing Co, the US plane maker has been moving spare parts between its distribution centres in the United Kingdom and other regions across the globe, as it prepares for Brexit.

Boeing shares closed lower for the eighth time in the past seventeen trading sessions in New York on Tuesday. The stock inched down 0.02% ($0.10) to $426.77, after touching an intraday low at $424.40, or a price level not seen since February 22nd ($419.14).

Shares of Boeing Company have surged 32.33% so far in 2019 compared with an 11.45% gain for the benchmark index, S&P 500 (SPX).

In 2018, Boeing’s stock went up 9.36%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.

“We are having our spares positioned in the right place,” Ken Shaw, who heads supply chain management for Boeing’s services business, said during the Australian International Airshow, cited by Reuters.

“We are continuously looking at the demand signals because we didn’t have to worry about it before between the London distribution centre and shipping a part to France. Now we are having to be more purposeful so we are redistributing inventory,” he added.

According to Shaw, Britains exit from the EU will probably not have a strong impact on the companys production process, since spare parts from Britain were mostly distributed between the United States and other regions of the globe rather than shipped to continental Europe.

“The underlying supply chain to make it has been a relatively easy thing for us just because of the nature of our product flows,” Show noted.

“We are in pretty good shape but we have moved some parts around and we have done some redistribution to put things where we needed to just in case. We are about as ready as we can be not knowing what the outcome is going to be.”

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $451.50, with a high estimate of $500.00 and a low estimate of $380.00. The median estimate represents a 5.79% upside compared to the closing price of $426.77 on February 26th.

The same media also reported that 17 out of 23 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 3 – as “Hold”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Boeing Co (BA) are presented as follows:

Central Pivot Point – $421.02
R1 – $427.50
R2 – $430.95
R3 – $437.43
R4 – $443.91

S1 – $417.57
S2 – $411.09
S3 – $407.64
S4 – $404.19