Key Stats for Boeing Stock
- Price change for Boeing stock in the last 6 months: -8%
- $BA Stock Price as of Oct. 1: $192
- 52-Week High: $254
- $BA Stock Price Target: $273
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What Happened?
Boeing (BA) engineers and technical workers approved a new four-year contract. The deal includes an immediate 10% raise, so a strike is off the table.
The union is SPEEA. It represents about 13,000 engineers and 4,000 technical workers. It is Boeing’s largest white-collar union.
Boeing raised its offer in mid-September after workers rejected an earlier proposal. That first offer had 3% annual raises, and workers voted it down by a wide margin.
The new deal has 4% raises each year, with up to 6% available based on merit.
The professional unit, which includes engineers, voted 67.62% in favor. The tech unit approved it with 53.48%.
Boeing said it was “pleased with the outcome of the vote.”
The timing matters.
Boeing is trying to raise output of its fast-selling jets. It also wants federal approval for the 737 Max 10 and 777X, which are years behind schedule.
On Monday, the FAA said it is checking whether a software issue on the 737 Max 10 is a safety-of-flight concern.
Boeing remembers what a strike can do. A machinist strike two years ago halted production until a deal was reached.
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What the Market Is Telling Us About Boeing Stock
Investors will likely see this as one less risk. Boeing Engineers stock matters because these workers are central to certification and production work. A walkout could have slowed both.
On the July earnings call, CEO Kelly Ortberg said Boeing started talks early to avoid a work stoppage. He called the tone “respectful and productive.” That early push now looks like it paid off.
The business has been improving.
- Q2 revenue rose 8% to $24.6 billion.
- Boeing delivered 171 airplanes, the most in a quarter since 2018.
- Free cash flow was positive $631 million.
- Management still expects $1 billion to $3 billion for the year.
Ortberg also pointed to a record backlog of $715 billion.
For anyone watching Boeing Engineers stock, a stable workforce supports the plan to ramp up 737 production to 47 jets a month.
Still, higher pay raises costs.
Boeing also reported a core loss of $0.76 per share last quarter, so margins matter.
Boeing Engineers stock may now trade more on the FAA’s review of the Max 10 and on how well Boeing keeps production on track.
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So what is Boeing stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
