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Boeing Co. (NYSE:BA) shares took a small hit on Wednesday, falling more than 1% even as the broader market enjoyed a green day. The S&P 500 was up 0.26%, and the Nasdaq Composite climbed 1%, powered by tech stocks. But Boeing, it seems, was marching to its own beat.
Investors had plenty to chew on: fresh commercial aircraft numbers for July, a big deal with Archer Aviation Inc. (NYSE:ACHR), and a chorus of bullish analyst notes. Yet the stock still dipped. Sometimes the market just does that.
On Monday, Boeing and Archer signed agreements for Archer to acquire Wisk Aero, SkyGrid, and Insitu. It's an all-stock deal, and Archer says it could "significantly change the profile" of the company. The key piece is Insitu, which is profitable and generates more than $200 million in annual revenue. That business is expected to contribute positive free cash flow, which is a nice way to start a relationship.
Commercial aircraft activity was solid in July. Boeing delivered 53 jets during the month, five more than in the same month last year. The company also booked 38 gross orders and recorded eight cancellations. That brings year-to-date gross orders to 483, and net orders (after cancellations and conversions) to 438.
Boeing ended July with 6,791 total unfilled commercial aircraft orders. After ASC 606 accounting adjustments, the reported commercial backlog was 6,192 aircraft, down slightly from 6,202 at the end of June. So, a tiny dip, but nothing to worry about.
Despite Wednesday's decline, Boeing's stock is still sitting pretty relative to its moving averages. The stock is about 3.7% above its 20-day simple moving average. It also trades roughly 4% to 5% above its 50-day, 100-day, and 200-day averages.
In June, BA formed a "golden cross" when its 50-day moving average moved above its 200-day average. Traders often see that as a bullish longer-term signal. The relative strength index (RSI) is at 54.69, which suggests the stock is neither overbought nor oversold. It's in that comfortable middle ground.
On the technical front, BA faces near-term resistance around $232. A move above that level could support another leg higher. Support sits near $214, an area where buyers might step in during a deeper pullback.
Wall Street is still pretty upbeat about Boeing. The stock carries a Buy consensus rating and an average price target of $273.13. Recent analyst moves include:
That's a lot of optimism, with targets well above the current price.
Boeing is a major holding in several aerospace and defense ETFs. The iShares U.S. Aerospace & Defense ETF (BATS:ITA) has a 9.33% weighting in Boeing. The Invesco Aerospace & Defense ETF (NYSE:PPA) has an 8.27% weighting, while the iShares Defense Industrials Active ETF (NASDAQ:IDEF) has a 5.12% weighting.
That exposure means significant flows into or out of those funds can affect demand for Boeing shares. So, if you see a big move in one of those ETFs, it might spill over into BA.
BA Stock Price Activity: Boeing shares were down 1.26% at $230.31 at the time of publication on Wednesday.
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