Invest in Boeing stock today with Interactive Brokers as your trusted online brokerage.
Whenever you see a man-made object flying, odds are that Boeing is behind it. From commercial aircraft to cargo planes and military projects, Boeing is one of the largest companies in the world and a leading voice in the aerospace industry. Plus, the Everett plant is the largest factory in the world. Boeing, from all appearances, is a massive, thriving operation that seemingly will never stop.
A true giant of the industry, Boeing has been in aerospace for over a century. A recent crisis significantly weakened this sector, yet, vigilant investors will find an opportunity there.
How to Buy BA Stock Summary
Are you looking to invest in the recovery of aerospace? This guide will show you how to buy stocks, including BA.
Step 1: Pick a Brokerage
Investing in stocks is most convenient through a brokerage — a regulated financial company that buys and sells shares on your behalf. Although this used to be a slow, phone-operated process in the past, now it is much faster. You can do it from anywhere — by phone, app or through a web platform.
If you are a first-time investor buying Boeing, you need an account at a brokerage with access to the New York Stock Exchange (NYSE). You can pick one from our list of best brokers.
Step 2: Decide How Many Shares You Want
The number of shares you want to buy will depend on the amount of capital you are planning to invest and the current price of BA. The stock currently trades at $173. Since that is a rather high dollar amount, you might consider using a broker that allows fraction share ownership. That will allow you to invest smaller sums without worrying about a single share price.
Step 3: Choose Your Order Type
Before investing you need to be familiar with the basic terminology. Try them out on your broker’s demo platform.
- Bid: The highest price that a buyer is willing to pay for a share
- Ask: The lowest price that a seller is willing to sell a share for
- Spread: The difference between the bid and the ask. For example, if the bid for BA is $244.90 and the ask is $245.30, then the spread is $0.4.
- Market order: A simple order that instructs your broker to buy the next available shares as soon as possible
- Limit order: An order to buy (or sell) a stock at a specific order or better. For example, if you want to buy shares of BA for no more than $240, your limit order will only execute if BA stock is at $240 or lower.
Step 4: Execute Your Trade
Once you are familiar with the broker’s platform and have decided how many BA stocks you want to buy, you are ready to place an order. The broker will deduct the funds from your account and buy the shares on your behalf. You should keep track of the broker’s statements for all the details.
Best Online Stock Brokers
Here’s a selection of our top recommended online brokers for trading and investing in Boeing stock.
Boeing Stock History
The Boeing Company started as Aero Products Company in Seattle, Washington, in 1916. Its founder, William E. Boeing, built the 1st plane, Boeing Model 1 in June 1916.
Over the decades, it rose to one of the largest global aerospace manufacturers and the 2nd-largest defense contractor in the world. It is also the largest exporter in the U.S.
Currently, the company consists of 3 business units:
- Commercial Airplanes
- Defense, Space & Security
- Boeing Global Services
Finances are handled through a subsidiary, Boeing Capital Corporation.
Currently headquartered in Arlington County, Virginia, the company has 170,688 employees and a market cap of $106.89 billion.
Screenshot from TradingView on 8/26/2024
BA Restrictions for Retail Investors
Publicly-listed companies can issue up to 5% of their share capital while bypassing retail investors. During the COVID-19 crisis, in some instances, this was up to 20%.
Although Boeing took on a lot of debt, CEO Dave Calhoun is refusing to do an equity raise. For retail investors, this means there is no short-term dilution risk or restriction in the share offering participation.
Pros of Buying BA
Investing in Boeing stock presents several advantages that can appeal to both seasoned investors and those looking to enter the aerospace and defense sector for the first time.
- Strong market position: Boeing is one of the largest aerospace manufacturers in the world and holds a significant market share in both commercial and defense sectors. As of 2023, Boeing is ranked as the second largest aerospace company by revenue, which can indicate stability and growth potential for shareholders.
- Potential for recovery post-pandemic: After experiencing challenges during the COVID-19 pandemic, Boeing has shown signs of recovery. The commercial aviation sector is projected to grow significantly, with the International Air Transport Association (IATA) forecasting that global passenger demand will return to pre-pandemic levels by 2024. This trend could enhance Boeing’s stock performance as air travel resumes.
- Dividends and long-term growth potential: Boeing has a history of paying dividends, and although it suspended payments during the pandemic, analysts predict that dividends will resume as the company stabilizes. Historically, dividends combined with stock price appreciation can contribute to substantial returns, making Boeing a potentially attractive long-term investment.
Cons of Buying BA
While investing in Boeing stock may seem attractive due to its potential for growth and the recovery of the aviation industry, there are several cons to consider that could affect the overall profitability of such a decision.
- Volatility and market sentiment: Boeing’s stock has experienced significant volatility in recent years, particularly due to incidents like the 737 MAX crisis, which resulted in two fatal crashes and a subsequent grounding of the aircraft. This has led to negative market sentiment, with the stock price fluctuating considerably. For instance, Boeing’s stock dropped from over $400 in early 2019 to around $180 in late 2020.
- Complex supply chain issues: Boeing’s operations are heavily dependent on a complex global supply chain, which can be vulnerable to disruptions. Issues like semiconductor shortages, labor strikes or geopolitical tensions can negatively impact production timelines and costs. Recent reports indicated that supply chain challenges could lead to delays in aircraft deliveries, which may affect revenue projections and investor confidence.
- Regulatory scrutiny: Boeing faces ongoing scrutiny from regulators, particularly in the wake of the 737 MAX incidents. Increased regulatory oversight can lead to additional costs, delays in production and potential fines. For example, the company agreed to a settlement of $2.5 billion with the U.S. Department of Justice in early 2021 related to the 737 MAX mishaps, highlighting the financial implications of regulatory challenges.
Still Not Out of the Turbulence
Despite all the problems in the last few years, Boeing remains a resilient company. It is so entrenched in the public sector operations that it is proving to be too big to fail.
The key for Boeing is in solving the cultural issues and returning to the old path of excellence. In that case, it could be one of the most promising turnaround stories.
Frequently Asked Questions
A
Boeing’s ownership structure consists of approximately 63.20% of its shares held by institutional investors, 0.85% held by insiders and 35.95% held by public companies and individual investors.
A
During the 1940s, Boeing used 300s and 400s for military aircraft, 500s for turbine engines, 600s for rockets and missiles and 700s were set aside for jet transport aircraft. Eventually, it was decided to use all model numbers beginning or ending with a 7 for commercial jets.
A
This depends on individual financial goals and risk tolerance. Investors should conduct thorough research and consider factors like Boeing’s financial health, market trends and project pipelines before investing.
Related content: How to Buy United Airlines (UAL) Stock
