We all know that aerospace company Boeing (BA) has been hurting for cash lately. With its production stalled thanks to an ongoing strike and a litany of mechanical problems, it is small wonder that is the case. The latest news may address the cash shortage, but not in a way shareholders like. Still, Boeing stock was up 1.5% in Tuesday afternoon trading.
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Boeing wants to issue some new stock. A lot of new stock. The company has announced plans to raise at least $10 billion through a share sale. Boeing is currently working with advisors and it will likely take at least a month before the new shares can be sold on the open market.
Check Your Rudders
At the same time, there is another unexpected mechanical glitch going on with Boeing’s aircraft, though it Boeing may not be responsible for it. Specifically, the National Transportation Safety Board (NTSB) in the U.S. found that more than 40 different operators of Boeing aircraft might be using rudder parts that “pose safety risks,” according to a report from Reuters.
The NTSB put out an “urgent safety recommendation” focused on the rudder parts. Using these parts could result in a jammed rudder control system, which is what happened to a United Airlines (UAL) flight back in February of this year. Those potentially impacted should check the “rudder rollout guidance actuator.”
Is Boeing a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 15 Buy, four Hold and two Sell recommendations assigned in the past three months, as indicated by the graphic below. The average BA price target of $208.74 per share implies 34.89% upside potential.
