SPR - Why Is Spirit AeroSystems (SPR) Stock Down Today?
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Sad news is starting this week. A passenger plane crashed in the mountains of southern China this morning. The plane was operated by China Eastern Airlines (NYSE:CEA) and manufactured by Boeing (NYSE:BA). As the world waits for more details, investors are selling off companies related to the crash. This has dragged down Boeing, and it is also bringing down Spirit AeroSystems (NYSE:SPR), the firm responsible for building several pieces Boeing uses in production. SPR stock is currently down just under 4%.
What’s Happening With SPR Stock
SPR stock is down just under 4% this morning, having recovered from lows reached earlier in the trading session. Boeing, which manufactured the 737 plane involved in the crash, is down slightly more.
Spirit is perhaps best known for its work for Boeing. In recent years, that hasn’t necessarily been a good thing. Boeing’s 737 Max, which was involved in two fatal crashes, led to years of scrutiny over software problems and other issues. This led Wall Street to take an increasingly bearish stance on BA stock, and with it, SPR stock due to its ties to Boeing.
The parts supplier makes fuselages, wings, wing components and other necessary structures for commercial and defense-grade aircraft. It supplies these components to Boeing, alongside other suppliers like Hexcel (NYSE:HXL).
What It Means
What’s clear is that investors recognize Spirit as a partner of Boeing. As a result, it is moving down alongside Boeing and other parts suppliers today.
Looking to the future, Boeing faces a tough road. The company was still working to regain trust after the two fatal 737 Max crashes.
Investors in the aerospace realm should proceed with caution as officials gradually share more information about today’s crash. There are too many dark clouds surrounding Boeing to make SPR stock a safe bet.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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