Boeing (BA) filed to raise up to $25 billion through a combination of stock and debt offerings and entered into a $10 billion supplemental credit agreement with lenders. The move comes as the company attempts to shore up its balance sheet amidst ongoing strikes at its West Coast factories.
While Boeing filed to raise up to $25 billion, analysts estimate that it needs to bring in at least $10 billion and $15 billion, according to Reuters. This would allow the company to maintain its credit ratings, which are just one notch above junk, it added.
"These are two prudent steps to support the company's access to liquidity," Boeing said in a statement to Reuters. "This universal shelf registration provides flexibility for the company to seek a variety of capital options as needed to support the company's balance sheet over a three-year period."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Previously, Boeing was reportedly working with its advisers to raise at least $10 billion.
Boeing reports preliminary results and layoffs
On Friday, Boeing released its preliminary third-quarter results, which included a net loss of $9.97 per share, a cash burn of $1.3 billion and an ending balance of cash and marketable securities of $10.5 billion.
In a separate release, Boeing announced that it would reduce the size of its total workforce by roughly 10%, or about 17,000 people.
"Our business is in a difficult position, and it is hard to overstate the challenges we face together," said new Boeing CEO Kelly Ortberg in a statement. "Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term."
Is BA stock a buy, sell or hold?
Boeing has been one of the worst Dow Jones stocks in 2024, down nearly 42% for the year to date. Yet, Wall Street remains bullish on the the large-cap stock.
According to S&P Global Market Intelligence, the average analyst target price for BA stock is $199.88, representing implied upside of nearly 32% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm UBS Global Research lowered its price target on BA stock to $215 from $220 but maintained its Buy rating after the preliminary results were released.
"Boeing announced preliminary Q3 results and a number of business and operational updates," wrote UBS analyst Gavin Parsons on October 14. "In short: we believe cost rightsizing and a narrower focus are necessary steps, but highlight the long road to recovery. Less cash burn in Q3 gives Boeing slightly more flexibility on liquidity than expected, but cost-out steps also suggest labor contract negotiations could extend."
Related content
-
The Original Property Tax Hack: Avoiding The ‘Window Tax’Property Taxes Here’s how homeowners can challenge their home assessment and potentially reduce their property taxes — with a little lesson from history.
-
Is Mint Mobile's Home Internet a Game-Changer or Just Another Option?Mint Mobile recently unveiled its new home internet service. We break down how it works so you can determine if it's a great value for your needs.
-
Five Downsides of Dividend Investing for Retirees, From a Financial PlannerCan you rely on dividend-paying stocks for retirement income? You'd have to be extremely wealthy — and even then, the downsides could be considerable.
-
Dow, S&P 500 Slip on December Rate Cut Worries, Nvidia Boosts Nasdaq: Stock Market TodayNvidia became the first company ever to boast a $5 trillion market cap, but it wasn't enough to lift the Dow and the S&P 500.
-
I'm a CPA: Control These Three Levers to Keep Your Retirement on TrackThink of investing in terms of time, savings and risk. By carefully monitoring all three, you'll keep your retirement plans heading in the right direction.
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market TodaySHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
-
Targa Resources, Take-Two Interactive, Boston Scientific: Why Experts Rate These Stocks at Strong BuyWall Street is highly bullish on these three high-quality stocks.
-
Debunking Three Myths About Defined Outcome ETFs (aka Buffered ETFs)Defined outcome ETFs offer a middle ground between traditional equity and fixed-income investments, helping provide downside protection and upside participation.
-
This Is Why Judge Judy Says Details Are Important in Contracts: This Contract Had HolesA couple's disastrous experience with reclaimed wood flooring led to safety hazards and a lesson in the critical importance of detailed contracts.
-
US-China Trade Hopes Send Stocks to New Highs: Stock Market TodayApple and Microsoft are on track to join Nvidia in the $4 trillion market cap club.
