Boeing Testimony Before Congress Comes As Several Members Sold Shares Of Aerospace Giant

Boeing Co BA CEO David Calhoun will testify before Congress today (June 18) about the company's safety measures.

The testimony comes as several members of Congress sold their Boeing shares in 2024.

What Happened: Calhoun will testify in front of the Senate Committee on Homeland Security & Governmental Affairs on Tuesday where he will be questioned on safety measures the company is taking with multiple investigations underway.

This marks the first appearance by Calhoun in front of Congress after several setbacks for the airplane manufacturer.

Benzinga's Government Trades page shows that two members of Congress have sold their Boeing shares in 2024 with the company facing multiple investigations and various safety setbacks.

Rep. William Keating (D-Mass.) sold $1,000 to $15,000 worth of Boeing shares on Feb. 28 and reported the sale on March 12.

Rep. Blake Moore (R-Utah) sold $1,000 to $15,000 worth of Boeing shares on Jan. 9 and reported the sale on Jan. 24.

The last purchase of Boeing shares shown on the page was by Alan Lowenthal in 2022, who was a Democratic U.S. representative from California, 2013-2023

Defense stocks, which includes Boeing, have been a popular sector for several members of Congress who may have loaded up on stocks that could benefit from increased tension in the Middle East.

With Congress hearing testimony from Calhoun, Boeing will be closely watched for trading activity from members of Congress who could have an inside scoop on future investigations and punishments.

Related Link: 10 Best Stock Traders In Congress In 2023 (Spoiler: Nancy Pelosi Has Reentered The Chat)

Why It's Important: The hearing could provide a look at how Congress feels about Boeing's safety issues and what the next steps could be.

Tuesday's hearing comes with Boeing facing fresh allegations from Boeing inspector Sam Mohawk. The whistleblower alleges Boeing has mishandled defective parts related to the 737 Max aircraft.

Investors and analysts will likely be closely listening and watching to hear what level of responsibility and accountability Calhoun takes and what he says the company is doing to move past the setbacks.

"From the beginning, we took responsibility and cooperated transparently with the NTSB and the FAA. Our culture is far from perfect, but we are taking action and making progress. We are taking comprehensive action today to strengthen safety and quality," Calhoun said in prepared remarks ahead of the meeting.

Calhoun is set to resign by the end of 2024, as the company looks to transition into the future. Calhoun's $33 million compensation package for 2023 has been criticized by investors with the ongoing struggles for the company.

BA Price Action: Boeing shares are down 2.15% to $174.55 versus a 52-week trading range of $159.70 to $257.54. Boeing stock is down 32.7% year-to-date in 2024.  

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