Walgreens Boots Alliance Inc. (WBA:NSD) took center stage as its stock prices plummeted by a staggering 7.4%. This unexpected downturn sent ripples through the investment landscape, leaving investors and market enthusiasts eager to decipher the reasons behind this dramatic decline and, more importantly, what the future holds for WBA stock. In this article, we explore the events that transpired on that pivotal Friday, offering insights into the factors that led to this sharp decline. We’ll also explore the WBA stock forecast that may shed light on what lies ahead for Walgreens stock.
The first sign of trouble emerged with the unexpected departure of Rosalind Brewer, the CEO and Board member of Walgreens Boots Alliance. On August 31, Brewer stepped down from her role on amicable terms, leaving investors and stakeholders surprised. The company assured everyone that Brewer would be actively involved in the search for a suitable replacement, someone with a “deep healthcare experience,” who could ensure a smooth transition.
In the interim, Ginger Graham, the lead independent Director, has taken on the role of interim CEO. This sudden change in leadership cast a cloud of uncertainty over the company and marked the beginning of WBA stock’s downward spiral.
Reflection on Performance and Store Closures:
Walgreens lowered its full-year earnings guidance earlier in June, anticipating earnings per share to fall between $4.00 and $4.05. The reasons cited for this downgrade were “challenging consumer and macroeconomic conditions” and lower volumes of COVID-19 vaccine and testing. Walgreens Boots made the announcement that it would be closing 150 stores in the US and 300 in the UK in the upcoming year. The impact of these factors on the company’s performance was significant, and investors started to worry.
As a result, the stock market witnessed a sharp decline in WBA stock prices, with a staggering 7.4% drop to close at $23.43 on September 1, hitting a 52-week low. This decline hasn’t been seen since 1999, raising concerns about the company’s ability to weather the storm.
From S&P 100 to NYE: Walgreens vs. Deere:
It’s essential to consider what lies in store for Walgreens stock. The company is currently transitioning to focus on healthcare, which has presented challenges. Year-to-date, WBA stock has lost 34% of its value, removing it from the prestigious S&P 100 index. Replacing it in the index is industrial goods manufacturer Deere (DE:NYE), effective September 18.
WBA Stock Forecast:
But what do the experts have to say about the future of WBA stock? According to the consensus among 11 analysts, the average target price for Walgreens Boots Alliance Inc. stands at USD 35.50 over the next 12 months. While the stock’s current rating is ‘Hold,’ Stock Target Advisor’s own analysis leans ‘Slightly Bullish,’ based on 10 positive signals and 5 negative signals.
At the last closing, WBA stock was priced at USD 23.43, marking a -7.24% change over the past week, -22.70 % over the past month, and a significant -33.57% dip over the last year.
The journey of Walgreens stock in 2023 has been tumultuous, marred by CEO departures, reduced earnings guidance, and store closures. It’s worth noting that Wall Street analysts still see potential in the company’s recovery. Investors and stakeholders will be keeping a close eye on the developments at Walgreens Boots Alliance Inc. as they wait for signs of a turnaround.