Walgreens Boots Alliance, Inc. (WBA) Stock: Why It’s Climbing


Walgreens Boots Alliance, Inc. (WBA) is making a move up in the market in today’s trading session. The stock, one that is focused in the service space, is currently priced at $62.41 after gaining -1.87% so far today. In terms of service companies, there are a number of aspects that have the ability to generate gains in the market. One of the most common is news. Here are the most recent stories surrounding WBA:

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Mar-21-19 03:34PM Why Lululemon (LULU) Stock Looks Like a Buy Heading into Q4 Earnings
10:43AM Rite Aid shareholders approve reverse stock split
08:30AM CVS or Walgreens: Which Is the Better Dividend Stock?
Mar-20-19 05:45PM Walgreens Boots Alliance (WBA) Dips More Than Broader Markets: What You Should Know
03:17PM Invest in Americas Rising Healthcare Costs With These Stocks

However, when making an investing decision, prospective investors should focus on far more than just news, this is especially the case in the ever highly complex service space. Here’s what’s going on with Walgreens Boots Alliance, Inc..

Trends That We’ve Seen From WBA

Although a move toward the top in a single session, like the gain that we’re seeing from Walgreens Boots Alliance, Inc. may make some investors upset, a single session move alone shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It’s always important to take a look at trends experienced by the stock further out than a single trading session. When it comes to WBA, below are the trends that investors have experienced:

  • Past 5 Sessions – Throughout the last 5 trading sessions, WBA has generated a change in value amounting to -0.35%.
  • Monthly – The return on investment from Walgreens Boots Alliance, Inc. throughout the last month comes to -11.44%.
  • Past 3 Months – Throughout the past quarter, the company has produced a return on investment that comes to -14.85%
  • Past Six Months – Throughout the previous 6 months, we’ve seen a performance that amounts to -12.44% from the stock.
  • YTD – Since the close of last year WBA has generated a return on investment of -8.66%.
  • Annually – Lastly, throughout the past full year, we have seen a change of -5.82% from WBA. In this period of time, the stock has traded at a high price of -27.69% and a low of 5.65%.

Ratios To Watch

Looking at a few ratios associated with a stock can give prospective investors a look of how risky and/or potentially profitable a stock pick might be. Here are a few of the key ratios to think about when looking at WBA.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors are expecting that the price of the stock is going to gain. Across the sector, strong service sector stocks can have a lower short ratio. However, we also tend to see quite a few short squeezes in the sector. Nonetheless, as it relates to Walgreens Boots Alliance, Inc., it’s short ratio clocks in at 4.03.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Essentially, they measure the company’s abilities to pay for its debts as they mature based on current assets or quick assets. come with positive current and quick ratios. As it relates to WBA, the quick and current ratios total up to 0.40 and 0.80 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets owned by the company to the price of shares. In this case, that ratio comes in at 27.01.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the price of the company’s stock. In terms of WBA, the cash to share value is 1.05.

Investors Tend To Follow The Big Money

An interesting fact that I have learned in my brief time on Earth has been that good investors tend to follow the moves made by big money players. So, investors that are looking to play it relatively safe will watch moves made by institutional investors and those on the inside. So, how does the big money flow in regard to WBA? Here’s what’s going on:

Institutions own 64.40% of the company. Institutional interest has moved by -1.33% over the past three months. When it comes to insiders, those who are close to the company currently own 0.20% percent of WBA shares. Institutions have seen ownership changes of an accumulative -3.81% over the last three months.

Analyst Opinions Of Walgreens Boots Alliance, Inc.

While it’s rarely a good idea to unknowingly follow the thoughts of analysts, it is a smart idea to use their thoughts in order to validate your own when it comes to making investment decisions in the service sector. Here are the recent moves that we have seen from analysts as it relates to WBA.

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Mar-08-19 Reiterated BofA/Merrill Underperform $69 → $62
Jan-17-19 Initiated UBS Sell $70
Dec-19-18 Resumed Wolfe Research Peer Perform
Dec-14-18 Downgrade Goldman Neutral → Sell
Oct-15-18 Reiterated Pivotal Research Group Hold $60 → $72

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $6.96. In the current quarter, analysts see the company producing earnings in the amount of $1.74. Over the last 5 years, WBA has generated revenue in the amount of $12.70% with earnings coming in at 13.00%. On a quarter over quarter basis, earnings have seen movement of 45.40% and revenue has seen movement of 9.90%.

How Many Shares Of WBA Are Available?

Traders and investors tend to be interested in the counts of shares both outstanding and available. In regard to Walgreens Boots Alliance, Inc., there are currently 931.24M and there is a float of 795.71M. This means that of the total of 931.24M shares of WBA in existence today, 795.71M are able to be traded by the public.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to WBA, the short percent of the float is 2.99%.

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