Boeing shares close lower on Monday, Ed Clark appointed as head of 737 MAX program, memo shows

According to a report by Reuters, citing an internal memo sent to Boeing Co’s (BA) employees, the plane maker has appointed veteran engineer Ed Clark to head its 737 MAX jetliner program.

Clark, who served as chief mechanic and engineer for the company’s cash cow narrowbody program, will head Boeing’s manufacturing hub at Renton, Washington.

Ed Clark is the fifth person in four years to head the program, which has been faced with quality shortfalls, parts shortages as well as the safety ban following the two 737 MAX crashes.

Last week marked the second anniversary of the second 737 MAX crash, in Ethiopia.

Boeing shares closed lower for the fourth time in the past ten trading sessions in New York on Monday. The stock went down 1.32% ($3.56) to $265.63, after touching an intraday high at $278.27, or a price level not seen since March 4th 2020 ($285.91).

Shares of Boeing Company have risen 24.09% so far in 2021 compared with a 5.67% gain for the benchmark index, S&P 500 (SPX).

In 2020, Boeing’s stock went down 34.29%, thus, it underperformed the S&P 500, which registered a 16.26% gain.

Analyst stock price forecast and recommendation

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $240.00, with a high estimate of $306.00 and a low estimate of $165.00. The median estimate represents a 9.65% downside compared to the closing price of $265.63 on March 15th.

The same media also reported that at least 12 out of 27 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 9 – as “Hold”. On the other hand, 3 analysts had recommended selling the stock.