3 Things About Walgreens That Smart Investors Know
If you think Walgreens Boots Alliance (NASDAQ: WBA) is just a pharmacy chain, you're not working with the same information that knowledgeable investors have about the stock. Despite its popular reputation as a mainstream prescription-filler, it's actually branching out into a couple of new avenues, like providing healthcare directly, which might help it make a turnaround. And that could ultimately catalyze its stock to move higher.
Let's take a look at three things that smart investors appreciate about this stock so that you'll get a better picture of where it is, where it's going, and whether it'll be a good pickup for your portfolio.
Walgreens owns a significant number of shares in AmerisourceBergen, a major medical supply business, and on May 11 it announced that it had sold 6 million of those shares for $150 each, netting a cool payoff of $900 million. Management says that the proceeds from the sale will go to reducing the company's debt load of more than $38.2 billion, and also that the transaction had a favorable return on investment. It still owns around 25% of AmerisourceBergen's outstanding shares, so the door is still open for future sales of a similar size.
Source Fool.com