Boeing Trouble Continues As Stock Fell Below 52 Weeks Low

• Boeing stock selling below 52 weeks low
• Boeing may have to cut production
• 5 Covid-19 cases confirmed at Boeing Everett plant

The current state of stock in Dow Jone's component, "Boeing" is putting the company under serious pressure. Shareholders in the company are fast losing hope that the company's shares would bounce back again. And as the 737 Max continues to remain grounded, the performance of a lot of Boeing (BA) other commercial and space programs are below expectations.

The company's 737 MAX has remained grounded since March 2019 because of the crashes of two of the planes that lead to the death of all on board. Also, Boeing is faced with endless issues ranging from dirty fuel tanks to other unpleasant challenges. As a result of this, the company has been facing great decline in its stock performance. According to the CNBC report on Tuesday, Boeing would not get any regulatory approval of its 737 Max until June or July. This delay has lead to the company missing out of this year's peak in the traveling season. The delay on the regulatory approval of the 737 Max further increases the pressure on the company as it continues to deals with millions of dollars worst of lost. 

The current situation of Boeing finance is such that the management is actively seeking loans of more than $10 billion from banks. In the report, CNBC reveals that the company has gotten financial from some banks including Bank of America Merrill Lynch, Citigroup, and J.P Morgan bank.

Effect on Boeing Stock

The company's stock is one of the assets on the receiving end of the whole saga going on in the company. CNBC reported that Boeing share price plunged as much as 5.6% resulting in a price fall of about $306.00. Before this decline, in January, the company stock rallied all the way to $342.25. Presently, the stock is trading at its lowest value.

Since Boeing is the largest branch of the Dow Jone's component, the current collapse in the company's finance has a gravitational pull on the overall index of the whole component. This is evidence in the blue-chip decline by as much as 202 before picking up again on Tuesday afternoon.

Boeing stock is currently in a critical state trading at $136 per share, a significant drop from the $398 it was selling sometimes ago. The market capitalization is down to $94.8 billion.

However, during a conference call, the CEO, Dennis Muilenburg revealed that the company is looking for an alternative way to remedy its current financial situation if the ban continues. He said  “Those alternatives could include different production rates” or “temporary shutdown of the line.” However, he added that shutting down production is “not something we want to do, but an alternative that we have to prepare for.”

Today, Boeing stock reaches a new low, it's now selling close to $103.00. Boeing is losing businesses and earning. Also, the company is looking forward to the federal government for about $50 billion bailout package.   According to Reuters " The ratings agency lowered its credit rating on the planemaker to ‘BBB’ from ‘A-‘ and now expects 2020 free cash flow in a range of negative $11 billion to $12 billion, down from a prior estimate of positive $2 billion"