Quick Overview:
- Acquired 80,195 Walgreens Boots Alliance (WBA) shares worth $2,094,000 in Q4, showing strategic interest.
- Vanguard, Capital World Investors, Invesco, and Morgan Stanley significantly boosted their stakes, reflecting strong confidence in WBA.
- Analysts provide varied target prices and ratings, with a consensus target price of $23.57 and a “hold” consensus.
HighPoint Advisor Group LLC made a significant move in the fourth quarter. The company acquired a new stake in Walgreens Boots Alliance, Inc. (NASDAQ: WBA). The firm purchased 80,195 shares, valued at approximately $2,094,000, marking a notable addition to its investment portfolio. This acquisition highlights HighPoint’s strategic interest in WBA and reflects confidence in the company’s future performance and market position.
Vanguard Raises Walgreens Stake by 14.5%, Now Worth $1.93B
Vanguard Group Inc. significantly increased its stake in Walgreens Boots Alliance by 14.5% during the third quarter. Therefore bringing its total holdings to 86,675,198 shares valued at $1,927,656,000. This substantial purchase, amounting to an additional 10,962,030 shares, underscores Vanguard’s strong confidence in the potential of WBA. Capital World Investors also made a notable increase in its investment by 29.1% in the fourth quarter. The firm now holds 18,448,648 shares valued at $481,694,000, with 4,163,317 shares. This considerstake expansion signifies a robust belief in the company’s growth trajectory.
Invesco Ltd. followed suit by expanding its stake by 21.5% during the third quarter. Thereby bringing its total to 17,026,420 shares valued at $378,668,000. The acquisition of 3,013,807 shares reflects Invesco’s strategic positioning within the healthcare sector. Morgan Stanley also increased its holdings by 15.8% in the third quarter, now owning 12,584,371 shares valued at $279,876,000 after acquiring 1,720,228 additional shares. This increase indicates Morgan Stanley’s positive outlook on computer prospects.
Charles Schwab Raises Stake by 10.4%, Totaling $170.2M
Charles Schwab Investment Management Inc. saw a 10.4% rise in its stake during the fourth quarter, now holding 6,519,845 shares valued at $170,233,000. This followed the purchase of an additional 613,847 shares, showcasing Charles Schwab’s growing interest in Walgreens Boots Alliance. In total, hedge funds and institutional investors now control 58.59% of Walgreens Boots Alliance’s stock, reflecting widespread institutional confidence in the company’s performance.
Wall Street analysts have issued mixed forecasts for Walgreens Boots Alliance. UBS Group lowered its target price from $25.00 to $22.00, maintaining a neutral rating. TD Cowen reduced its price objective from $37.00 to $35.00 but upheld a buy rating, indicating optimism despite the price adjustment. Bank of America decreased its target price from $23.00 to $22.00, rating the stock as underperforming. Evercore ISI revised its price target from $18.00 to $17.00, giving an in-line rating. SVB Leerink reduced its price objective from $23.00 to $22.00, with a market performance rating. The consensus rating remains on hold, with a consensus target price of $23.57, reflecting a balanced outlook among analysts.
Insiders Show Confidence, Bhandari Buys 3,000 Shares
In recent insider activity, Director Inderpal S. Bhandari purchased 3,000 shares on April 11 at an average price of $18.05 per share, totalling $54,150.00. This acquisition brought his total ownership to 3,000 shares. Additionally, CFO Manmohan Mahajan bought 6,000 shares on April 2 at an average price of $19.38 per share, with the transaction valued at $116,280.00, raising his total ownership to 166,969 shares. Insiders now own 17.40% of the company’s stock, indicating substantial internal confidence in the company’s future.
On June 19, Walgreens Boots Alliance’s stock price closed at $16.11, a $0.96 increase with a trading volume of 19,148,786 shares, significantly higher than the average 12,492,978 shares. The stock’s 12-month range has seen a low of $14.62 and a high of $32.89, reflecting considerable volatility. The company has a market capitalisation of $13.90 billion, with a price-to-earnings ratio of -2.30 and a PEG ratio of 0.94, indicating negative earnings but potential growth. The beta of 0.78 suggests lower volatility compared to the market. The 50-day moving average is $16.92, while the 200-day moving average is $20.53. Walgreens Boots Alliance maintains a debt-to-equity ratio of 0.50, a current ratio of 0.66, and a quick ratio of 0.32, demonstrating a relatively stable financial position.
Walgreens Reports Q1 Earnings of $1.20 Per Share
In its quarterly earnings report on March 28, Walgreens Boots Alliance reported earnings per share (EPS) of $1.20, surpassing the consensus estimate of $0.82 and reflecting an improvement from the previous year’s same quarter EPS of $1.16. The company’s revenue for the quarter was $37.05 billion, exceeding analyst estimates of $35.86 billion and representing a 6.3% year-over-year increase. The return on equity was 12.11%, while the net margin was -4.18%. The projected EPS for the current year is 3.21, suggesting continued profitability.
Walgreens Boots Alliance paid a quarterly dividend of $0.25 per share on June 12, with an ex-dividend date of May 20. This results in an annualised dividend of $1.00 per share and a dividend yield of 6.21%. The company’s payout ratio is -14.29%, indicating the dividend is funded through means other than current profits. It reflects a commitment to returning value to shareholders. On the S&P 500, Walgreens Boots Alliance Inc. was among the top performers, with a 6.34% increase to close at $16.11. Other notable performers included Teradyne Inc., which saw a 4.84% rise to $151.75, and United Rentals Inc., which increased by 4.13% to $644.89. This performance underscores the resilience and potential of Walgreens Boots Alliance within the broader market context.
