Equitable Holdings takes new $23.5M stake in Boeing
What's the deal? Equitable Holdings Inc.Dealroom has a profile for this one. Try Dealroom → bought a new position in The Boeing CompanyDealroom has a profile for this one. Try Dealroom → during the second quarter, acquiring 108,401 shares valued at roughly $23,465,000, according to HoldingsChannelDealroom has a profile for this one. Try Dealroom →. The move adds a fresh institutional backer to the aircraft maker as it works through a prolonged turnaround.
Where the shares stand: Boeing stock opened at $209.78 on Friday, giving the company a market capitalisation of $165.81 billion and a price-to-earnings ratio of 90.82. The shares have traded between a one-year low of $176.77 and a high of $254.35.
How's the business? Boeing reported a loss of $0.76 per share for the quarter ended July 28, wider than the consensus estimate of a $0.34 loss. Revenue came in at $24.56 billion, edging past the $24.26 billion analysts expected.
Why now? The stake comes amid signs of momentum in Boeing's defence arm. It recently secured a sole-source F-15 sustainment contract with a potential ceiling of about $131.23 billion through 2037, and won a combined $766 million in B-52 modernisation contracts alongside RTXDealroom has a profile for this one. Try Dealroom →.
What could go wrong? Boeing still carries a debt-to-equity ratio of 6.77 and faces commercial-aircraft headwinds. A labour dispute with the SPEEA white-collar union has stoked strike concerns, and a quality manager has publicly raised fresh worries about the 787 and 737 MAX.
The signal: Equitable's purchase is one of several recent institutional bets on Boeing, which count for 64.82% of the company's stock. The interest reflects a market weighing Boeing's strengthening defence backlog against persistent debt and production risks.
Read more: tickerreport.com
Image credit: Jetstar Airways
