Boeing Co (BA) Stock: Sell-Off Pushes BA Stock Into Oversold Zone

• Boeing Co (BA) stock price was dragged down from the uptrend.
• Boeing’s long-term debt for the second quarter was $47.65 Billion. 
• BA stock closed at $191.68, noting a gain of 0.66% in the last intraday session. 

Boeing’s (BA) stock price has slowed since the second quarter release. The stock melted 21% within the last 2 months and is now hovering near the $190 support level of January 2023. The price attained lower lows and highs, which dissolved the entire year-to-date performance within 2 months.

However, the year-to-date return is -0.66%, denoting neither profit nor loss, and the three-month return of -10.07% reflects the vigorous presence of sellers. Moreover, the market capitalization of Boeing Co. is $115.622 Billion, and the average volume is million shares.

In June 2023, Boeing received record-breaking orders of 20 Dreamliners, 10 Boeing 777Xs, and 190 Boeing 737 MAX  from Air India at the Pris Air Show. Air India signed purchase agreements with Airbus and Boeing worth $70 Billion. After the announcement, the Boeing (BA) stock price spiked roughly 17%.  This helped the BA stock to a needed annual high at the resistance level of $243.10.

Q2-2023 Financial Report of Boeing Co. 

Boeing Company announced a positive 2nd quarter financial report on July 26, 2023, which elevated the stock price by about 9% in an intraday session. The reported earnings of -$0.82 per share beat the Zacks Consensus Estimate of -$0.99 EPS by a surprise of 17.17%. 

Boeing reported sales of $19.75 Billion, surpassing the estimated sales of $18.45 Billion, which reflects a positive surprise of 7.1%. The Q2-2023 report catalyzed the ongoing uptrend, which halted at the $243.10 resistance level but did not sustain and drag down toward the $190 support level.

Technical Indicators Reflecting Bearish Momentum

Boeing’s (NYSE: BA) stock price is trading below the 20, 50, 100, and 200-day EMAs, indicating heavy dominance of bears. It is hence suggesting a downtrend trendline with a rise in sellers’ participation in the market.

Moreover, the RSI is hovering below the 50 neutral zones, and the CMF trades below the 0.00 mark, denoting that the BA stock price is oversold. This suggests that the price may face a correction phase in the upcoming days.

Why is BA Stock Price Falling?

Despite Boeing waving off its debt by more than $10 Billion from the peak of $57.65 Billion, it’s still under the burden of $47.65 Billion debt. Thus, Boeing must devote its free cash flow to debt reduction until at least 2026 to whitewash its balance sheet.  

The current high demand for Boeing’s military and commercial aircraft exceeds supply. Now, to pay some of the debt it took during the crisis, the company has to fulfill the current demands in the years to boost cash flow in the coming years.  

Technical Levels 

Major resistance: $243.10 and $241.58 

Major support: $192.40 and $190.03

Disclaimer

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