Walgreens Boots Alliance (NASDAQ:WBA) Shares Gap Up Following Earnings Beat

Shares of Walgreens Boots Alliance, Inc. (NASDAQ:WBA) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $9.22, but opened at $10.60. Walgreens Boots Alliance shares last traded at $11.56, with a volume of 26,878,129 shares traded.

The pharmacy operator reported $0.51 earnings per share for the quarter, beating analysts’ consensus estimates of $0.38 by $0.13. Walgreens Boots Alliance had a positive return on equity of 14.23% and a negative net margin of 5.85%. The firm had revenue of $39.50 billion during the quarter, compared to the consensus estimate of $37.40 billion. During the same period in the prior year, the company posted $0.66 EPS. The company’s revenue was up 7.6% compared to the same quarter last year.

Walgreens Boots Alliance Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, December 12th. Shareholders of record on Monday, November 18th were issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 8.50%. The ex-dividend date of this dividend was Monday, November 18th. Walgreens Boots Alliance’s dividend payout ratio is currently -9.99%.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on WBA. Jefferies Financial Group cut their price target on shares of Walgreens Boots Alliance from $19.00 to $9.00 and set a “hold” rating for the company in a report on Wednesday, October 23rd. Truist Financial cut their target price on Walgreens Boots Alliance from $13.00 to $10.00 and set a “hold” rating for the company in a research note on Monday, October 7th. Barclays lifted their price target on Walgreens Boots Alliance from $7.00 to $8.00 and gave the company an “underweight” rating in a research note on Wednesday, October 16th. UBS Group upped their price objective on Walgreens Boots Alliance from $9.00 to $10.00 and gave the stock a “neutral” rating in a research report on Thursday, October 17th. Finally, Royal Bank of Canada decreased their target price on Walgreens Boots Alliance from $13.00 to $9.00 and set a “sector perform” rating on the stock in a research report on Wednesday, December 4th. Four equities research analysts have rated the stock with a sell rating, nine have given a hold rating and two have issued a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $12.58.

Institutional Investors Weigh In On Walgreens Boots Alliance

Several hedge funds have recently added to or reduced their stakes in the business. Strategic Investment Solutions Inc. IL bought a new stake in shares of Walgreens Boots Alliance in the 2nd quarter valued at about $34,000. TD Private Client Wealth LLC boosted its holdings in Walgreens Boots Alliance by 8,670.3% in the third quarter. TD Private Client Wealth LLC now owns 3,245 shares of the pharmacy operator’s stock valued at $29,000 after acquiring an additional 3,208 shares during the last quarter. Sentry Investment Management LLC acquired a new stake in Walgreens Boots Alliance during the 3rd quarter valued at approximately $30,000. Elkhorn Partners Limited Partnership increased its position in Walgreens Boots Alliance by 250.0% during the 2nd quarter. Elkhorn Partners Limited Partnership now owns 3,500 shares of the pharmacy operator’s stock valued at $42,000 after purchasing an additional 2,500 shares during the period. Finally, Eastern Bank bought a new position in Walgreens Boots Alliance during the 3rd quarter worth approximately $33,000. 58.59% of the stock is currently owned by institutional investors and hedge funds.

Walgreens Boots Alliance Stock Up 27.5 %

The company has a current ratio of 0.68, a quick ratio of 0.37 and a debt-to-equity ratio of 0.67. The stock’s 50-day moving average price is $9.26 and its 200-day moving average price is $9.89. The stock has a market cap of $10.15 billion, a price-to-earnings ratio of -1.17, a P/E/G ratio of 1.36 and a beta of 0.64.

About Walgreens Boots Alliance

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.