SPR - Why Spirit AeroSystems Stock Took Off in March
2024-04-05 11:15:14 ET
Long-troubled Spirit AeroSystems Holdings (NYSE: SPR) is in talks to be reacquired by its onetime parent. Investors are excited about the possibilities, which sent Spirit shares up 26.1% in March, according to data provided by S&P Global Market Intelligence .
Spirit makes aircraft fuselages and other components for Boeing (NYSE: BA) and Airbus , including the frames for Boeing's mainstay 737 line. The company was spun out of Boeing in 2005 at a time when Boeing was focused on streamlining its manufacturing footprint, but little has gone right for either company in the years since.
Boeing's issues with the 737 MAX have derailed growth plans for both it and Spirit. And Spirit's continued reliance on its former parent -- Boeing is responsible for about two-thirds of Spirit revenue -- has made it a poor investment. Some of Boeing's quality problems have also been blamed on Spirit.
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Why Spirit AeroSystems Stock Took Off in March