As if a floundering spaceship and planes that seem to fall apart at the drop of a hat weren’t bad enough for Boeing (NYSE:BA), it just got worse. New reports say that the government is planning criminal charges against Boeing, which only adds to the growing array of troubles therein. Shareholders, naturally, weren’t happy, and shares were down fractionally in Wednesday afternoon’s trading.
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The latest word out of Boeing’s parade of tragedies is that the Justice Department plans criminal charges against Boeing, specifically, over fraud connected to two previous fatal crashes. It even has a plea agreement all set up for Boeing to use, much of which actually seems interconnected with things Boeing was already doing.
Under the terms of the plea agreement, there will be a penalty of $487.2 million, though half of that will be credited from a previous settlement. Further, there will be as much as three years of probation, as well as three years of an independent monitor put in place to cover Boeing’s safety and compliance practices. That’s not exactly much, particularly given that Boeing is already under some degree of regulatory monitoring that keeps its production capped.
Starliner Not Stuck
Meanwhile, Boeing still insists that the Starliner isn’t stranded in space despite now being about three weeks late for dinner. Word from Commercial Crew Program vice president Mark Nappi notes that it’s not “stuck on ISS,” “the crew is not in any danger,” and “there’s no increased risk when we decide to bring Suni and Butch back to Earth.”
However, criticism of Boeing continues. In fact, Fast Company brought out a scathing report that took a look at what Boeing’s next CEO most needed. The two virtues apparently most lacking are “courage and humility.” The report also ticked off a list of Boeing’s recent troubles, including $32 billion in stock losses, a $2.5 billion settlement, and growing regulatory scrutiny.
Is Boeing Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 16 Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 13.57% loss in its share price over the past year, the average BA price target of $213.21 per share implies 15.64% upside potential.
