Walgreens Boots Alliance Inc. (WBA) Downgraded to “Hold” at Zacks Investment Research
According to Zacks, “The proposed buyout of Rite Aid by Walgreens, which is still expected to close in the latter half of 2016, should expand the company’s business realm in the U.S. over the long term. Several recent strategic programs including skin product launch and vaccination program are also expected to boost the company’s growth in near future. Walgreens continues to hold a strong cash position, which is evident from its increased cash flow reserve in the last-reported third quarter. The company was successful in achieving its earlier target of combined net synergies of at least $1 billion in Jun 2016 on account of the legacy Walgreens’ merger with Alliance Boot. On the flip side, the company’s gross margin continued to deliver a bleak performance. The U.S. FTC’s recent update regarding the Walgreens store divestment, needed for the Rite Aid acquisition is another downside for the company’s business.”
WBA has been the topic of several other reports. Robert W. Baird reissued an outperform rating and set a $98.00 price target on shares of Walgreens Boots Alliance in a research report on Monday, June 27th. Evercore ISI reissued a buy rating and set a $93.00 price target on shares of Walgreens Boots Alliance in a research report on Thursday, July 7th. Credit Suisse Group AG reissued a buy rating and set a $95.00 price target on shares of Walgreens Boots Alliance in a research report on Monday. Deutsche Bank AG reissued a buy rating on shares of Walgreens Boots Alliance in a research report on Monday, July 18th. Finally, Keefe, Bruyette & Woods reissued an underperform rating on shares of Walgreens Boots Alliance in a research report on Friday, July 22nd. One analyst has rated the stock with a sell rating, five have assigned a hold rating and fifteen have assigned a buy rating to the company’s stock. The stock presently has an average rating of Buy and an average price target of $93.07.
Shares of Walgreens Boots Alliance (NASDAQ:WBA) traded down 1.23% during trading on Thursday, hitting $79.31. 1,235,220 shares of the stock were exchanged. The stock’s 50 day moving average price is $81.39 and its 200 day moving average price is $81.21. Walgreens Boots Alliance has a one year low of $71.50 and a one year high of $95.74. The stock has a market cap of $85.84 billion, a PE ratio of 27.40 and a beta of 1.01.
The firm also recently declared a quarterly dividend, which was paid on Monday, September 12th. Stockholders of record on Friday, August 19th were paid a $0.375 dividend. This is a boost from Walgreens Boots Alliance’s previous quarterly dividend of $0.36. The ex-dividend date of this dividend was Wednesday, August 17th. This represents a $1.50 annualized dividend and a dividend yield of 1.87%. Walgreens Boots Alliance’s dividend payout ratio is presently 51.90%.
In other news, EVP Kathleen Wilson-Thompson sold 23,996 shares of the company’s stock in a transaction on Thursday, September 8th. The stock was sold at an average price of $85.00, for a total value of $2,039,660.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director William C. Foote sold 2,067 shares of the company’s stock in a transaction on Tuesday, July 26th. The shares were sold at an average price of $81.35, for a total value of $168,150.45. Following the completion of the sale, the director now owns 26,690 shares of the company’s stock, valued at approximately $2,171,231.50. The disclosure for this sale can be found here. 21.10% of the stock is owned by insiders.
Several hedge funds have recently made changes to their positions in the stock. CapWealth Advisors LLC raised its stake in shares of Walgreens Boots Alliance by 30.0% in the first quarter. CapWealth Advisors LLC now owns 1,300 shares of the pharmacy operator’s stock valued at $110,000 after buying an additional 300 shares during the period. Kings Point Capital Management raised its stake in shares of Walgreens Boots Alliance by 12.8% in the first quarter. Kings Point Capital Management now owns 1,323 shares of the pharmacy operator’s stock valued at $111,000 after buying an additional 150 shares during the period. Jolley Asset Management LLC raised its stake in shares of Walgreens Boots Alliance by 104.5% in the second quarter. Jolley Asset Management LLC now owns 1,370 shares of the pharmacy operator’s stock valued at $114,000 after buying an additional 700 shares during the period. MCF Advisors LLC raised its stake in shares of Walgreens Boots Alliance by 0.4% in the first quarter. MCF Advisors LLC now owns 1,371 shares of the pharmacy operator’s stock valued at $116,000 after buying an additional 6 shares during the period. Finally, Westbourne Investment Advisors Inc. purchased a new stake in shares of Walgreens Boots Alliance during the second quarter valued at $121,000. Institutional investors and hedge funds own 59.74% of the company’s stock.
About Walgreens Boots Alliance
Walgreens Boots Alliance, Inc (Walgreens Boots Alliance) is a holding company. The Company is a global pharmacy-led, health and wellbeing enterprise. Walgreens Boots Alliance operates through three divisions, including Retail Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. The Company’s products are marketed under a number of brands, which include No7, the Botanics range, Almus (generic medicines), Boots Pharmaceuticals and Soap & Glory (bathing and beauty brand).
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Walgreens Boots Alliance Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Walgreens Boots Alliance Inc. and related companies with MarketBeat.com's FREE daily email newsletter.