Boeing shares close lower on Monday, cash position from deal with Embraer not decided yet

According to a securities filing by Embraer S.A. on Monday, the plane makers cash position from the potential sale of 80% of its commercial aircraft and services operations to Boeing Co (BA) is yet to be decided.

Boeing shares closed lower for the third time in the past thirteen trading sessions in New York on Monday. The stock went down 0.72% ($2.54) to $350.36, after touching an intraday low at $347.24, or a price level not seen since January 10th ($343.00).

Shares of Boeing Company have surged 8.64% so far in 2019 compared with a 3.02% gain for the benchmark index, S&P 500 (SPX).

In 2018, Boeing’s stock rose 9.36%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.

The Brazilian plane manufacturer had already said that the expected cash boost from the deal with Boeing would be approximately $1 billion.

Last year the two companies announced that the joint venture, which is to include Embraer’s commercial jet business only and not its defense and business jet operations, would lead to the establishment of a new entity, where Boeing would own a stake of 80.01%, while the Brazilian plane maker – a stake of 19.99%.

Boeing has agreed to pay as much as $4.2 billion for Embraer’s commercial aviation business.

Brazils government has already approved the deal. However, the latter still requires approval from Embraer shareholders.

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $428.32, with a high estimate of $515.00 and a low estimate of $330.00. The median estimate represents a 22.25% upside compared to the closing price of $350.36 on January 14th.

The same media also reported that 14 out of 22 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 5 – as “Hold”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Boeing Co (BA) are presented as follows:

Central Pivot Point – $343.54
R1 – $363.72
R2 – $374.55
R3 – $394.73
R4 – $414.92

S1 – $332.71
S2 – $312.53
S3 – $301.70
S4 – $290.88