Boeing Co. (NYSE:BA) stock fell Monday following reports that the aircraft maker identified a software glitch affecting its 737 MAX jets. The issue could cause an automated navigation feature to fail and potentially create a safety risk during landing.
The Wall Street Journal reported that Boeing has acknowledged the previously undisclosed glitch.
Boeing 737 MAX Software Glitch
According to the report, the issue stems from a cockpit software update. It can occur when flight crews change their planned flight path after a missed approach.
Boeing did not immediately respond to Benzinga’s request for comment.
Meanwhile, broader markets traded lower Monday. Nasdaq futures fell 0.59%, while S&P 500 futures declined 0.35%.
Technical Analysis
Boeing remains below its major moving averages. The stock is trading 7.8% below its 20-day simple moving average, 12.1% below its 50-day SMA and 14.9% below its 200-day SMA.
The 20-day SMA also remains below the 50-day SMA. In addition, the 50-day SMA crossed below the 200-day SMA in September. That bearish setup is commonly known as a “death cross.”
Momentum also remains weak. The MACD is below its signal line, while the histogram is negative. That suggests buying momentum has yet to recover.
Resistance sits near $215.50, close to the 50-day exponential moving average. Support is near $187.50. A break below that level could add to selling pressure.
Boeing Analyst Outlook
BA carries a Buy consensus rating and an average price forecast of $272.
Jefferies maintained a Buy rating on Sept. 21 but lowered its price forecast to $265. Bank of America maintained a Buy rating and a $270 price forecast on Sept. 18. Argus Research upgraded BA to Buy on Aug. 11 with a $265 price forecast.
Benzinga Edge Rankings
Boeing has a Momentum score of 25.24 and a Value score of 26.62, according to the Benzinga Edge scorecard.
The weak Momentum score reflects the stock’s recent underperformance and position below key moving averages. The Value score also remains weak relative to the broader market.
Boeing ETF Exposure
Boeing is a major holding in several aerospace and defense ETFs. The Corgi Aerospace & Commercial Aviation ETF (NASDAQ:AV) has a 4.17% weighting in Boeing. The iShares U.S. Aerospace & Defense ETF (BATS:ITA) has a 9.58% weighting, while the Invesco Aerospace & Defense ETF (NYSE:PPA) has a 7.20% weighting.
Because Boeing has sizable weightings in these funds, ETF inflows and outflows can contribute to buying or selling pressure in the stock.
BA Price Action
Boeing shares were down 4.33% at $189.50 at the time of publication Monday, according to Benzinga Pro data.
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