Varma Invests Heavily in Boeing Amid Defense Backlog and Labor Uncertainty

Varma Mutual Pension Insurance Co has invested $25.26 million in The Boeing Company, acquiring 116,700 shares according to its recent Form 13F filing with the Securities & Exchange Commission.

This is not an isolated instance, as several other hedge funds have also made changes to their positions in the company. Measured Wealth Private Client Group LLC acquired a new position in shares of Boeing during the third quarter worth $25,000. Similarly, Strive Financial Group LLC and Ares Financial Consulting LLC each acquired a new stake in Boeing valued at about $25,000 and $26,000 respectively.

Boeing's defense backlog has received a boost with the U.S. State Department approving a potential $4.5 billion sale of KC-46A tanker aircraft to Qatar. Additionally, the company's agreement to sell or transfer businesses including Wisk Aero, Insitu, and SkyGrid to Archer Aviation could generate cash and provide exposure to autonomous and electric aviation markets.

However, labor uncertainty surrounding a proposed four-year contract with the Society of Professional Engineering Employees in Aerospace (SPEEA) is weighing on investors. A rejection of the contract could lead to a strike after the current contracts expire on October 6, potentially disrupting Boeing's production, certification, and delivery schedules.