Is This a Sign Walgreens Boots Alliance Is Getting Desperate?
Walgreens Boots Alliance (NASDAQ: WBA) is a top pharmacy retailer that millions of Americans trust and rely on for groceries and prescriptions. It got a boost from COVID-19 vaccinations and the traffic that brought into its stores. Although that demand has largely evaporated now, the company has been pivoting to primary care in an effort to bring in more customers.
The problem is that its business doesn't generate nearly enough cash to support that venture, plus pay dividends, plus pay down its debt. The company has been turning to the sale of its investment in to help improve its cash position. And that's not something investors should be excited about.
On Aug. 3, Walgreens announced that it would reduce its position in drug wholesale company AmerisourceBergen with the sale of $1.85 billion worth of shares. With the sale, its stake in the business is now approximately 16%. In August 2022, Walgreens reported that it owned 52.9 million shares in AmerisourceBergen for a 25.4% ownership in the business.
Source Fool.com
AmerisourceBergen Corp. Stock
With 0 Sell predictions and 1 Buy predictions the community sentiment towards the AmerisourceBergen Corp. stock is not clear.
However, we have a potential of -0.87% for AmerisourceBergen Corp. as the target price of 255 € is below the current price of 257.25 €.
