2. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders as of Q4: 103
Citadel Investment Group’s Equity Stake: $977.31 Million
An American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide, The Boeing Company (NYSE:BA) announced its Q4 2024 revenue on January 28, 2025. Boeing reported $15.2 billion in fourth-quarter revenue, with a per-share loss of ($5.46), largely due to the impact of the IAM work stoppage, defense program charges, and costs from previously announced workforce reductions. The company also recorded an operating cash outflow of ($3.5) billion. Boeing President and CEO Kelly Ortberg emphasized that while progress was made in stabilizing operations and enhancing safety and quality measures, the company remains committed to implementing fundamental changes to improve performance and rebuild trust with stakeholders, including customers, employees, suppliers, investors, and regulators.
The Boeing Company (NYSE:BA)’s shares dropped 6.6% on March 4, 2025, highlighting how trade tensions are affecting not just major importers but also the nation’s largest exporter. In 2024, the U.S. maintained a trade surplus of approximately $100 billion from aircraft exports, with Boeing playing a significant role. While the company manufactures jets, bombers, and satellites exclusively in the U.S., it remains vulnerable to rising costs of raw materials like aluminum due to its extensive global supply chain, which includes a composite parts facility in Winnipeg, Canada. CEO Kelly Ortberg has acknowledged that tariffs in China could impact sales in that market. However, The Boeing Company (NYSE:BA) benefits from its position as one of only two major suppliers of commercial jetliners, alongside Airbus, at a time when demand for aircraft remains high.
By the end of Q4 2024, Citadel Investment Group increased its stake in The Boeing Company (NYSE:BA) by an immense margin, from the 233,785 shares it held in Q3 to over 5.5 million shares in Q4. Accordingly, Citadel’s stake in Boeing increased to $977.31 million from $35.54 million in the previous quarter. This signified an increase of 2262% and effectively made Boeing the second-largest holding in Griffin’s portfolio. The company is now second on the list of top stocks to buy according to Citadel Investment Group.
Sound Shore Management stated the following regarding The Boeing Company (NYSE:BA) in its Q4 2024 investor letter:
“The Boeing Company (NYSE:BA): A detractor for the period was global aerospace leader Boeing. We were able to purchase the stock at a prospective 10% free cash flow yield on a normalized scenario. Over the past couple of years the stock rebounded from operational challenges and had surged on improved free cash generation from increasing order activity, driven by global demand for aircraft. It was one of our best performers in the fourth quarter of 2023 after its November plane deliveries increased. When additional manufacturing issues surfaced in January 2024, we believed it would push restructuring efforts back enough to warrant a review by our team. Reacting quickly, we sold our position at a gain in the first quarter, albeit less than before the news.”