If there is one aerospace company that has been through a lot over the past few years, it's Boeing (BA). After some crashes and increased scrutiny from the Federal Aviation Administration (FAA), Boeing went into recovery mode under CEO Kelly Ortberg. Now, there is an indication the company may soon start cashing in on its ballooning backlog.
Boeing recently made a strategic move to sell three of its subsidiaries — Wisk Aero, SkyGrid, and Insitu — to Archer Aviation (ACHR). This brings in two supposed benefits for the aerospace giant. A $20 Billion Reason Why Intel Stock Is in Focus Dear Intel Stock Fans, Mark Your Calendars for August 12 Ahead of Nebius Earnings, Here's What Barchart Data Says Comes Next for NBIS Stock Markets move fast.
Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. First, it gives the company a chance to focus on its core operations. The deal also gives Boeing a 19.75% stake in Archer, which focuses on electric vertical take-off and landing (eVTOL) aircraft.
Hence, while creating a leaner organization to achieve profitability, Boeing will be able to capitalize on the eVTOL market through Archer. This news also comes after the FAA recently certified Boeing's 737 MAX 7 aircraft. This approval has been long-awaited, while the company is reportedly close to winning certification for the 737 MAX 10 as well.
With that backdrop in mind, let's take a closer look at Boeing and BA stock. Boeing is a leading global aerospace company that designs, manufactures, and services commercial airplanes, defense products, and space systems. Headquartered in Arlington, Virginia, the company has a market capitalization of $184.3 billion.
BA stock has fallen less than 1% over the past 52 weeks as investors remain cautious about ongoing production bottlenecks, FAA oversight, and quality-control issues that continue to limit how quickly the company can convert its large order backlog into cash flow, even as deliveries and free cash flow improve. Shares are also up 6% year-to-date (YTD). The stock reached a 52-week high of $254.35 on Jan. 27, but shares are currently down 9% from that level.
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