Boeing Company (BA) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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The Boeing Company faces a potential dilution risk for its existing shareholders due to the issuance of common stock related to its acquisition of Spirit and the conversion of its Mandatory convertible preferred stock. The exchange ratio for Spirit’s shares ranges between 0.18 and 0.25, based on Boeing’s share price performance, while each preferred share could convert into up to 6.9940 common shares by October 2027. Additionally, Boeing has a significant number of shares reserved for equity awards, all of which could lead to substantial shareholder dilution if executed. Such actions may impact shareholder value and influence investor confidence in Boeing’s equity structure.
Overall, Wall Street has a Moderate Buy consensus rating on BA stock based on 14 Buys, 1 Sell and 5 Holds.
To learn more about Boeing Company’s risk factors, click here.
