Should Investors Be Selling Boeing (NYSE:BA) Stock Following Today’s Wells Fargo Downgrade?

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Boeing (NYSE:BA) Receives a Downgrade

Research analysts at Wells Fargo’s division of equities cut the rating for shares of Boeing (NYSE:BA) from a Outperform to a Market Perform on 18 December.

From a total of 19 analysts covering Boeing (NYSE:BA) stock, 0 rate it a ”Buy”, 0 a “Sell”, and 0 a ”Hold”. This means that NaN of the ratings are positive. The highest target price is $196 while the lowest target price is $108. The mean of all analyst targets is $163.47 with a 14.46% above today’s ($140.95) stock price. Boeing was the topic of 5 analyst reports since August 26, 2015 according to the firm StockzIntelligence Inc. Standpoint Research downgraded shares on November 2 to “Hold” rating. Standpoint Research initiated shares with “Buy” rating and $160.0 target share price in a report from an August 26. Cowen & Co maintained BA stock in a recent report from September 17 with “Outperform” rating.

Approximately 3.18 million shares of stock traded hands or 0.32% up from the average. Boeing Co (NYSE:BA) has declined 0.90% since May 15, 2015 and is downtrending. It has outperformed by 2.91% the S&P500.

The overall sentiment of institutions has increased to 1.19 in Q2 2015. Its up 0.22, from 0.97 in 2015Q2. The ratio increased, as 74 institutions have sold all the shares of Boeing Co that they owned while 439 funds have taken shares off the table. 94 funds have purchased shares for the first time while 518 added to their positions. These institutions now hold 510.23 million shares or 2.40% more than the 498.26 million shares they owned in 2015Q2.

The Fund Hengistbury Investment Partners Llp currently is holding shares equating to 22.69% of its total portfolio in Boeing Co representing a total of 377,600 shares. Another fund,Evercore Trust Company N.A., is holding a total of 43.30 million shares equating to 21.87% of their holdings. Additionally, Ruffer Llp has a 2.14 million share stake in Boeing Co which represents 12% of their total portfolio. The Fund, Ancient Art L.P., based out of Texas, has also built up a stake in the stock, which represents a total of 9.78% of their total portfolio. Finally Levy Harkins & Co Inc, a fund which is based in the state of New York reported a total holdings of 135,998 shares.

Insider activity is a very important aspect to track on any stock. Going back to May 4, 2015, shareholders of Boeing Co have witnessed 0 insider buys, and a total of 4 selling transactions equating to a net activity of approximately $40.73 million . Verbeck Robert E sold 8,448 shares worth approximately $1.23M. Sands Diana L sold 7,443 shares worth approximately $1.07 million. Mcnerney W James Jr sold 261,000 shares worth approximately $37.12 million. Conner Raymond L. sold 8,979 shares worth approximately $1.31 million. The company insider Tracy John J sold 23,288 shares worth $3.35M.

The Boeing Company, together with its subsidiaries, is an aerospace company. The company has a market cap of $98.01 billion. The Firm operates through five divisions: Commercial Airplanes, Boeing Military Aircraft , Network & Space Systems (N&SS), Global Services & Support (GS&S) and Boeing Capital (BCC). It has 17.71 P/E ratio. The Defense, Space & Security (BDS) business includes BMA, N&SS and GS&S.

According to Zacks Investment Research, “The Boeing Company is one of the world’s major aerospace firms. The company operates in three principal segments: commercial airplanes; military aircraft and missiles; and space and communications.”

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