Technicals Say Walgreens Boots Alliance Inc. (WBA) Is A Hold

Walgreens Boots Alliance Inc. (NASDAQ:WBA) finished Tuesday with a subtraction of -$0.18 to close at $46.91, a downside of -0.38 percent. An average of 5,108,340 shares of common stock have been traded in the last five days. There was a fall of -$1.80 in the past week. The last 20 days have seen an average of 5,307,685 shares traded, while the 50-day average volume stands at 4,943,730.

WBA stock has decreased by -8.02% in the last month. The company shares reached their 1-month lowest point of $46.06 on 10/01/21. With the stock rallying to its 52-week high on 04/06/21, shares of the company touched a low of $33.36 and a high of $57.05 in 52 weeks. In spite of this, the price is down -17.77% from the 52-week high.

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Insider Transactions

330 days have passed since Walgreens Boots Alliance Inc. (WBA) last reported insider trading activity. Pagni Marco Patrick Anthony, who is EVP, Global CAO and GC, most recently acquired $5,000 shares at $41.55 per share on Nov 11.

Valuation Metrics

Walgreens Boots Alliance Inc. (WBA) has a trailing price-to-earnings (P/E) ratio of 20.25, which compares with the 23.70 for the broader industry and 31.71 for the sector. This means investors are optimistic about the stock’s future prospects. In the last five years, Walgreens Boots Alliance Inc.’s PE ratio has ranged between 88.20 and 9.502. The stock’s beta is 0.50. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.31, the price-to-book (PB) ratio at 1.84, and the price-to-cash flow ratio at 12.42.

Walgreens Boots Alliance Inc. pays a $1.91 dividend per share annually. It offers a dividend yield of 4.07%. The company has a payout ratio of 70.30%. The company’s most recent quarterly dividend payment took place on Sep. 10, and it was $0.4770 a share, representing a up of 1.99 from $0.4675 last year. Its dividend has been increased for the last 46 consecutive years with the latest increase dividend $0.0095 reported on Tuesday July 13 2021. Dividends have grown by 19.35% each year over the last three years.

Walgreens Boots Alliance Inc. will next go ex-dividend on 18-Nov. The next dividend payment Walgreens Boots Alliance Inc. will make is expected to be $0.4775.

The quick ratio of Walgreens Boots Alliance Inc. for the three months ended May 30 was 0.50, and the current ratio was 0.80, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.39 and a total debt to equity ratio of 0.76 for the quarter ending May 30. On the profitability front, the trailing 12-month gross margin is 20.60% against a 5-year average of 23.1%. Walgreens Boots Alliance Inc.’s EBITDA margin for the year ending May 30 is 4.07%, while its operating margin for the same period stands at 1.30%. Its gross profit as reported stood at $28.02 billion compared to revenue of $139.54 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Walgreens Boots Alliance Inc.’s return on assets was 2.50%, compared to 5.1% over the last five years. In the past year, the return on investment has been 2.40%, and the 5-year average is 9.4%. Meanwhile, the return on equity (ROE) for the past 12 months has been 10.90% and the 5-year average holds at 13.0%. For the broader industry, ROE averaged 9.65 over the past year.

Earnings Surprise

The analyst consensus anticipated Walgreens Boots Alliance Inc.’s latest quarter earnings to come in at $1.17 per share, but it turned out to be $1.38, a 17.90% surprise. For the quarter, EBITDA amounted to $1.74 billion. Shareholders own equity worth $864.99 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Walgreens Boots Alliance Inc. (WBA) price momentum. RSI 9-day as of the close on 05 October was 36.86%, suggesting the stock is Neutral, with historical volatility in this time frame at 21.59%.

As of today, WBA’s price is $46.91 -3.70% or -$1.80 from its 5-day moving average. WBA is currently trading -8.18% lower than its 20-day SMA and -14.26% lower than its 100-day SMA. However, the stock’s current price level is +0.19% above the SMA50 and +15.29% above the SMA200.

The stochastic %K and %D were 17.36% and 14.84%, respectively, and the average true range (ATR) was 1.22. With the 14-day stochastic at 17.63% and the average true range at 1.18, the RSI (14) stands at 40.10%. The stock has reached -0.71 on the 9-day MACD Oscillator while the 14-day reading was at -1.03.

Analyst Ratings

Deutsche Bank reiterated its a Hold rating on Walgreens Boots Alliance Inc. (NASDAQ: WBA), but raised their price target to $49, indicating a potential price increase of 4.46% for the stock.The consensus rating for Walgreens Boots Alliance Inc. (WBA) among analysts is Hold. According to current brokerage recommendations, 1 brokerage firm advise that investors sell WBA, while 19 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 0 others rate it as a “buy”.

What is WBA’s price target for the next 12 months?

Analysts predict a range of price targets between $40.00 and $68.00, with a median target of $52.00. Taking a look at these predictions, the average price target given by analysts for Walgreens Boots Alliance Inc. (WBA) stock is $51.86.


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