Boeing shares close lower on Wednesday, plane maker’s net orders fall to lowest level in decades, deliveries at 11-year low

Boeing Co (BA) reported earlier this week the most disappointing annual net orders in decades, while its jet deliveries plunged to an 11-year low, as the company has lost the top spot to its main rival Airbus due to the global grounding of the 737 MAX.

Boeing shares closed lower for the fourth time in the past ten trading sessions in New York on Wednesday. The stock went down 0.77% ($2.55) to $329.80, after touching an intraday low at $329.71 and an intraday high at $333.11.

Shares of Boeing Company have risen 1.24% so far in 2020 compared with a 1.81% gain for the benchmark index, S&P 500 (SPX).

In 2019, Boeing’s stock went up 1.01%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.

Boeing said that gross orders had plummeted 77% to 246 jets in 2019, while net orders after cancellations or conversions were for 54 jets. In comparison, Boeing’s net orders were for 893 planes in 2018.

After an accounting adjustment that represents jets ordered in prior years but now not likely to be delivered, Boeing’s total net orders plunged to negative 87 jets.

Boeing said plane deliveries dropped 53% to 380 units in 2019, which has been the lowest level since 2008.

Therefore, the US plane maker’s book-to-bill ratio, which measures orders against deliveries, was reported at a negative 0.23 last year.

According to Boeing, unidentified clients canceled orders for three 787-9s in December, while another client canceled an order for one 787-8 Dreamliner.

Meanwhile, Boeing’s European competitor Airbus reported earlier in January net orders for 768 planes for 2019 after cancellations and record deliveries of 863 jets.

Analyst stock price forecast and recommendation

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $367.50, with a high estimate of $500.00 and a low estimate of $300.00. The median estimate represents an 11.43% upside compared to the closing price of $329.80 on January 15th.

The same media also reported that at least 14 out of 23 surveyed investment analysts had rated Boeing Company’s stock as “Hold”, while 7 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.