Is Buying Stock In Walgreens Boots Alliance Inc. (WBA) A Good Move Today?

Walgreens Boots Alliance Inc. (NASDAQ:WBA) saw a downside of -0.02% to $47.41 after subtracting -$0.01 on Tuesday. The 5-day average trading volume is 3,740,794 shares of the company’s common stock. It has gained $48.27 in the past week. An average of 4,855,809 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 4,824,894.

WBA’s 1-month performance is -4.11% or -$1.89 on its low of $46.06 reached on 10/01/21. The company’s shares have touched a 52-week low of $33.36 and high of $57.05, with the stock’s rally to the 52-week high happening on 04/06/21. YTD, WBA has achieved 18.91% or $7.68. However, the current price is down -16.90%% from the 52-week high price.


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Insider Transactions

On Nov 11, 335 days have gone by since the last insider trading activity for Walgreens Boots Alliance Inc. (WBA). Pagni Marco Patrick Anthony (EVP, Global CAO and GC) most recently sold 5,000 shares at $41.55 per share on Nov 11. This transaction cost the insider $207,725.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 88.20 and a low of 9.502. WBA stock has a beta of 0.52. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.31 while the price-to-book (PB) in the most recent quarter is 1.86, with the price to cash flow ratio at 12.61.

Walgreens Boots Alliance Inc. pays an annual dividend of $1.91 per share. Its dividend yield is 4.03% and the payout ratio is 70.30%. WBA’s most recent quarterly dividend payment was made on Sep. 10, when it paid $0.4770 a share compared with prior rate of $0.4675, up 1.99% from last year’s. The company has boosted its dividend for the last 46 consecutive years with the latest dividend increase of $0.0095 reported on Tuesday July 13 2021. Measured over the last 3 years, the Dividend has been growing by 19.35% yearly.

It is projected that Walgreens Boots Alliance Inc.’s next ex-dividend date will be on 18-Nov. WBA is expected to distribute $0.4775 as its next dividend.

Walgreens Boots Alliance Inc.’s quick ratio for the period ended May 30 was 0.50, with the current ratio over the same period at 0.80 meaning that WBA stock is not able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending May 30 was 0.39, while the total debt to equity was 0.76. In terms of profitability, the gross margin trailing 12 months is 20.60%. The trailing 12-month EBITDA margin is 4.07% while for the period ending May 30; Walgreens Boots Alliance Inc.’s operating margin was 1.30%. The firm’s gross profit as reported stood at $28.02 billion against revenue of $139.54 billion.

Earnings Surprise

For the quarterly period ending May 30 this year, Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected WBA to announce $1.17 per share in earnings in its latest quarter, but it posted $1.38, representing a 17.90% surprise. EBITDA for the quarter stood at more than $1.74 billion. WBA stock balance sheet for the quarter ending May 30 shows that total liabilities totaled 69.32 billion, with total debt at $41.21 billion. Shareholders hold equity totaling $864.99 million

Technical Picture

Let’s look briefly at Walgreens Boots Alliance Inc. (WBA) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 11 October was 46.42% to suggest the stock is trending Neutral, with historical volatility in this time period at 22.11%.

The stock’s 5-day moving average is $47.42, reflecting a +1.01% or $0.47 change from its current price. WBA is currently trading -1.36% above its 20-day SMA, -12.88% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by +1.57% and +20.05% respectively.

Stochastic %K and %D was 28.94% and 29.08% and the average true range (ATR) pointed at 1.08. The RSI (14) points at 45.75%, while the 14-day stochastic is at 31.22% with the period’s ATR at 1.10. The stock’s 9-day MACD Oscillator is pointing at 0.26 and -0.20 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Walgreens Boots Alliance Inc. (NASDAQ: WBA), Deutsche Bank reiterated its a Hold rating for the company but lifted their price target by $49 to $55. Analysts offering their rating for WBA stock have a consensus rating for the stock as Hold. Currently, 1 brokerage advisors rate WBA as a “sell,”, while 19 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 1 rates the stock as overweight while 0 have offered a “buy” rating.

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

Analysts have a consensus price target ranging from a low of $40.00 and a high of $68.00, with their median price target at $52.00. Looking at these predictions, the average price target given by analysts is for Walgreens Boots Alliance Inc. (WBA) stock is $51.86.

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