AmerisourceBergen Stock Set for Big Surge on WBA Buyout Buzz

Posted February 16, 2018

Walgreens represented 30 percent of AmerisourceBergen's $153.1 billion revenue past year. When we divide the last trade volume by the 3-month average volume, we found out a relative volume of 1.10. A stock with a beta more than 1 means high volatile and less than 1 means low volatile.

Chief Executive Stefano Pessina reached out several weeks ago to Amerisource CEO Steven Collis about possibly buying out a portion of Amerisource that Walgreens doesn't own already, according to sources. As for a performance, the company are declining trend of -18.15% since start of the year and revealed moved down activity of -3.80% for the past three months.

Walgreens Boots Alliance announced that its board has initiated a stock buyback program on Wednesday, October 25th that authorizes the company to repurchase $1.00 billion in outstanding shares.

In other Walgreens Boots Alliance news, Director William C. Foote sold 2,736 shares of the stock in a transaction on Tuesday, July 25th.

AmerisourceBergen's stock was up 9.4% Tuesday afternoon, while Walgreens Boots Alliance was down slightly. Walgreens would be better off consolidating market share in its core pharmacy business, thereby securing a competitive edge over CVS, RBC Capital wrote. Walgreens has a market cap of $68.1 billion.

The company's stock is now moving with a -ve distance from the 200 day SMA of approximately -10.91%, and has a solid year to date (YTD) performance of -5.96% which means that the stock is constantly adding to its value from the previous fiscal year end price.

Walgreens in discussion with AmerisourceBergen over acquisition pact
Amerisource shares jump on Reports of Walgreen Buyout

Walgreens Boots Alliance (NASDAQ:WBA) last issued its earnings results on Thursday, January 4th. The pharmacy operator reported $1.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.27 by $0.01. (NASDAQ:WBA) yearly performance is -17.82% and net profit margin is 3.20%. During the same period in the previous year, the company posted $1.10 earnings per share. equities analysts anticipate that Walgreens Boots Alliance Inc will post 5.71 EPS for the current year.

The company's Average Revenue Estimate for the current quarter is $34.14 Billion, while Low and High Revenue Estimates are $32.78 Billion and $35.94 Billion respectively. This repurchase authorization allows the pharmacy operator to repurchase shares of its stock through open market purchases. Return on Assets (ROA) value of the stock is 5.5 Percent. The shares were bought at an average cost of $76.07 per share, with a total value of $7,520,128.06.

The company also recently declared a quarterly dividend, which will be paid on Monday, March 12th. Investors of record on Thursday, February 15th will be given a $0.40 dividend. The ex-dividend date is Wednesday, February 14th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.34%. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Chubb Limited (CB) analysts on average have given a price target of $86.13 on CB stock. If you are viewing this story on another website, it was copied illegally and republished in violation of United States & worldwide copyright and trademark law.

Walgreens may also be looking to compete with Amazon, which has indicated an interest in the healthcare and pharmaceutical businesses.

In this regard, we remind investors that the drugstore retailer and pharmacy-led, health and wellbeing enterprise already holds a 26% stake in AmerisourceBergen, which is part of their long-term strategic relationship, formed in 2013. According to today's trading volume Walgreens Boots Alliance, ABOVE its 20-Day Avg. volume with the stock showing BELOW Abnormal volume in the past 150 days.

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