The news for aircraft maker Boeing (NYSE:BA) is getting downright unnerving. Are there that many people willing to fly aboard aircraft where chunks of the plane will get off before you do? But the news isn’t better for shareholders, and Boeing shares were down nearly 2% in Tuesday afternoon’s trading thanks to reports that its quarterly delivery numbers are looking downright abysmal as the safety troubles continue.
Boeing offered up delivery numbers for the first quarter of 2024, a whopping 83 planes overall. In fact, for March, it delivered just under one plane for every day of the month: 29. Most of these were 737s, reports note, and there’s a growing body of delivery delays that are forcing airlines to reconsider not only their choice of aircraft vendor but also any plans they had for growth as a whole. This might not have been too bad, except it’s clear that orders are still outpacing Boeing’s ability to produce. Also back in March, Boeing got orders for 111 new planes, and 85 of them were 737 Max planes for American Airlines.
Troubles at the Top
This news is distressing enough, but the latest word from a whistleblower suggests that the problems may not be going away any time soon. An alleged insider recently spoke to Chris Rufo, who studies issues within the industry, and revealed that a change in philosophy might have hit Boeing particularly hard: the ongoing rush to DEI (Diversity, Equity, and Inclusion) and ESG (Environmental, Social, and Governance). Referred to as part of “broad stakeholder value,” the insider noted that the focus on these philosophies tended to do more harm than good.
Is Boeing Stock a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 17 Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 14.02% loss in its share price over the past year, the average BA price target of $241 per share implies 35.23% upside potential.
