Walgreens pact to buy fewer Rite Aid stores wins United States nod

Andrew Cummings
September 19, 2017

Walgreens Boots Alliance, Inc. has 1.06 billion shares outstanding, and in the last trade has seen ATR around 1.24. The business's quarterly revenue was up 2.1% compared to the same quarter a year ago.

Rite Aid has also been offered the option of joining Walgreens' group purchasing agreement to negotiate discounts on generic drug prices. Ngam Advisors L.P. boosted its position in Walgreens Boots Alliance by 46.2% in the second quarter. The overall volume in the last trading session was 1.11 million shares. TIAA CREF Investment Management LLC increased its holdings in shares of Walgreens Boots Alliance by 22.4% in the 1st quarter. The last stock price is up 0.86% from the 200-day moving average, compared to the Standard & Poor's 500 Index which has increased 0.04% over the same time period. UBS Asset Management Americas Inc. now owns 4,912,489 shares of the pharmacy operator's stock worth $407,982,000 after acquiring an additional 914,888 shares during the period. Hedge funds and other institutional investors own 60.16% of the company's stock.

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A number of research firms recently weighed in on WBA. Loop Capital began coverage on shares of Walgreens Boots Alliance in a report on Thursday, August 24th. The stock has an average rating of "Buy" and an average target price of $91.81. The consensus analyst target price is $93.05. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating and fifteen have issued a buy rating to the company's stock. Deutsche Bank AG set a $92.00 target price on Walgreens Boots Alliance and gave the company a "buy" rating in a research note on Saturday, January 21st.


The Federal Trade Commission approved the amended merger agreement between Deerfield, Ill. -based Walgreens Boots Alliance and Camp Hill, Pa. -based Rite Aid Sept. 19 after almost two years of negotiations. The stock was bought at an average price of $80.68 per share, with a total value of $48,408.00. WealthTrust Arizona LLC now owns 5,264 shares of the pharmacy operator's stock valued at $412,000 after purchasing an additional 21 shares during the last quarter.

Walgreens Boot Alliance has 52 week low of $75.18 and a 52 week high of $89.69 with a PE ratio of 20.86 and has a market capitalization of $0.

In October 2016 Walgreens Boots Alliance received the United Nations Foundation Global Leadership Award for its commitment to the UN's Sustainable Development Goals. Its opening price on the last trading day was $82.01.

Walgreens Boots Alliance (NASDAQ:WBA) last announced its quarterly earnings results on Thursday, June 29th. The pharmacy operator reported $1.33 earnings per share for the quarter, topping the Thomson Reuters' consensus estimate of $1.30 by $0.03.


Quarterly Revenue Growth on year-over-year basis stands at 2.1 percent. Walgreens Boots Alliance had a return on equity of 17.34% and a net margin of 3.69%. Analysts monitor insider data to understand the sentiment of a company's largest and most important shareholders.

On a similar note, analysts expect EPS of $1.22 in August 2017 quarter and $1.28 in November 2017 quarter, representing 14.02% and 16.36% growth, respectively. Walgreens said it doesn't expect the deal to have much effect on adjusted earnings per share during the fiscal year ending August 31, 2018.

The business also recently declared a quarterly dividend, which will be paid on Friday, March 10th. Burgundy Asset Management Ltd. lifted its holdings in Walgreens Boots Alliance by 5.0% during the 2nd quarter. The ex-dividend date of this dividend is Monday, February 13th. Walgreens Boots Alliance's dividend payout ratio (DPR) is 40.30%. This deal updates the terms of the June 2017 agreement, which was a $5.175 billion deal for 2,186 stores. This buyback authorization permits the pharmacy operator to repurchase up to 5.9% of its shares through open market purchases. Finally, M Holdings Securities Inc. bought a new position in Walgreens Boots Alliance during the 2nd quarter worth approximately $219,000.


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