Walgreens Boots Alliance Stock Share Price Drop

WBA Chart

Last December, Walgreen Co. and Alliance Boots GmbH completed the final step of their strategic partnership to form Walgreens Boots Alliance, Inc. (Nasdaq: WBA).

Walgreens is the largest drugstore chain in the USA and is now a wholly owned subsidiary of Walgreens Boots Alliance, Inc.

The merger – launched in 2012 – created the world’s first global pharmacy-led, health and wellbeing enterprise.

According to their website, the global enterprise combines Walgreens, Boots (the market leader in European retail pharmacy), and Alliance Healthcare (the leading international wholesaler and distributor).

Together, Walgreens Boots Alliance spans more than 25 countries, with over 12,800 stores, over 370,000 employees and more than 340 pharmaceutical distribution centers, according to their website.

Unfortunately, their stock fell about 10% during the month of August, according to data from S&P capital IQ.

The company didn’t give investors a whole lot of news to explain its share price decline in August, according to fool.com. They report that it’s likely that the stock got “caught up in the general global worries that caused markets around the world to tumble during the month.”

Fool.com states: “Although many investors might find it worrisome to watch a huge company like Walgreens fall for no apparent reason, these sorts of short-term dips are just par for the course in the world of investing.”

Zacks Investment Research upgraded shares of Walgreens Boots Alliance from a hold rating to a buy rating in a research report sent to investors on Tuesday morning, Market Beat Ratings reports.

According to Zacks, “Walgreens Boots reported a mixed third-quarter fiscal 2015 with earnings comfortably beating the Zacks Consensus Estimate, while the top line missing the mark. Management is particularly impressed with the Retail Pharmacy USA division, which exhibited a solid increase in comparable prescriptions filled in the quarter.

“However, management expects the upcoming fourth quarter to be typically the slowest quarter of the fiscal given seasonality in the business. Moreover, management is concerned as prescription reimbursement pressure continues to impact its pharmacy business, which makes retail margin expansion and cost control all the more important.

“Nevertheless, the synergies from the Walgreen Co. and Alliance Boots merger continue to boost our confidence on the stock.”





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