Walgreens Boots Alliance (NASDAQ:WBA) Stock Price Down 25.1% After Earnings Miss

Walgreens Boots Alliance, Inc. (NASDAQ:WBA)’s share price fell 25.1% on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $11.72 and last traded at $11.73. 69,237,828 shares traded hands during mid-day trading, an increase of 413% from the average session volume of 13,499,453 shares. The stock had previously closed at $15.66.

The pharmacy operator reported $0.63 EPS for the quarter, missing the consensus estimate of $0.67 by ($0.04). The company had revenue of $36.40 billion for the quarter, compared to analyst estimates of $35.94 billion. Walgreens Boots Alliance had a negative net margin of 3.99% and a positive return on equity of 12.63%. The firm’s quarterly revenue was up 2.8% on a year-over-year basis. During the same period in the previous year, the business posted $1.00 EPS.

Walgreens Boots Alliance Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 12th. Stockholders of record on Tuesday, May 21st were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Monday, May 20th. This represents a $1.00 annualized dividend and a dividend yield of 8.27%. Walgreens Boots Alliance’s dividend payout ratio (DPR) is -14.84%.

Wall Street Analyst Weigh In

WBA has been the subject of a number of analyst reports. Evercore ISI reduced their price objective on shares of Walgreens Boots Alliance from $17.00 to $10.00 and set an “in-line” rating for the company in a research note on Friday. Morgan Stanley reduced their price target on shares of Walgreens Boots Alliance from $13.00 to $9.00 and set an “underweight” rating for the company in a research report on Friday. Bank of America reiterated an “underperform” rating and set a $11.00 price objective (down from $22.00) on shares of Walgreens Boots Alliance in a research report on Friday. Barclays dropped their target price on Walgreens Boots Alliance from $21.00 to $19.00 and set an “underweight” rating on the stock in a report on Monday, June 24th. Finally, Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Walgreens Boots Alliance from $23.00 to $22.00 and set a “hold” rating on the stock in a research report on Wednesday, April 3rd. Four equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating and two have issued a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $20.64.

Insider Transactions at Walgreens Boots Alliance

In related news, Director Inderpal S. Bhandari acquired 3,000 shares of the stock in a transaction dated Thursday, April 11th. The shares were bought at an average cost of $18.05 per share, for a total transaction of $54,150.00. Following the purchase, the director now owns 3,000 shares in the company, valued at approximately $54,150. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. In other Walgreens Boots Alliance news, CFO Manmohan Mahajan acquired 6,000 shares of the business’s stock in a transaction on Tuesday, April 2nd. The stock was purchased at an average price of $19.38 per share, for a total transaction of $116,280.00. Following the transaction, the chief financial officer now owns 166,969 shares in the company, valued at approximately $3,235,859.22. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Inderpal S. Bhandari bought 3,000 shares of Walgreens Boots Alliance stock in a transaction dated Thursday, April 11th. The shares were bought at an average price of $18.05 per share, for a total transaction of $54,150.00. Following the completion of the transaction, the director now directly owns 3,000 shares of the company’s stock, valued at approximately $54,150. The disclosure for this purchase can be found here. 17.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Walgreens Boots Alliance

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Fulton Bank N.A. increased its stake in Walgreens Boots Alliance by 0.5% in the 4th quarter. Fulton Bank N.A. now owns 107,071 shares of the pharmacy operator’s stock valued at $2,796,000 after buying an additional 523 shares during the last quarter. Insight Folios Inc lifted its position in shares of Walgreens Boots Alliance by 5.8% during the 4th quarter. Insight Folios Inc now owns 9,640 shares of the pharmacy operator’s stock valued at $252,000 after acquiring an additional 525 shares during the period. Atlas Brown Inc. increased its holdings in Walgreens Boots Alliance by 1.8% in the 1st quarter. Atlas Brown Inc. now owns 31,593 shares of the pharmacy operator’s stock valued at $685,000 after buying an additional 550 shares during the period. Pinnacle Financial Partners Inc lifted its position in shares of Walgreens Boots Alliance by 4.9% during the 4th quarter. Pinnacle Financial Partners Inc now owns 11,866 shares of the pharmacy operator’s stock worth $310,000 after buying an additional 555 shares during the last quarter. Finally, Westpac Banking Corp lifted its holdings in shares of Walgreens Boots Alliance by 10.1% in the fourth quarter. Westpac Banking Corp now owns 6,100 shares of the pharmacy operator’s stock worth $159,000 after acquiring an additional 560 shares during the last quarter. Institutional investors own 58.59% of the company’s stock.

Walgreens Boots Alliance Stock Performance

The company has a current ratio of 0.65, a quick ratio of 0.32 and a debt-to-equity ratio of 0.49. The firm’s fifty day moving average is $16.49 and its 200-day moving average is $20.19.

Walgreens Boots Alliance Company Profile

Walgreens Boots Alliance, Inc operates as a healthcare, pharmacy, and retail company in the United States, the United Kingdom, Germany, and internationally. It operates through three segments: U.S. Retail Pharmacy, International, and U.S. Healthcare. The U.S. Retail Pharmacy segment engages in operation of the retail drugstores, health and wellness services, specialty, and home delivery pharmacy services, which offers health and wellness, beauty, personal care and consumables, and general merchandise.