- Walgreens Boots (WBA) stock experienced a significant increase on Monday following a Bloomberg report that the company is considering selling its U.K. Boots drugstores.
- The multinational retail pharmacy chain is reportedly in the early stages of discussions with potential buyers for its Boots business, which is valued at $8.8 billion.
- Despite this positive news, Walgreens stock remains down nearly 30% in 2024, continuing a long-term decline that began in 2015.
Walgreens Boots Alliance is reportedly exploring the sale of its U.K. Boots drugstores, causing a surge in its stock price. However, the company’s shares continue to struggle, maintaining a downward trend that started in 2015.
Walgreens Boots Considers Selling U.K. Boots Drugstores
According to a Bloomberg report, Walgreens Boots Alliance is looking into selling its U.K. Boots drugstores. The multinational retail pharmacy chain has begun contacting potential buyers and is in the early stages of discussions. The U.K. Boots pharmacy chain is valued at $8.8 billion, making it a significant part of the company’s portfolio.
Walgreens Stock Surges Amid Sale News
Following the news of the potential sale, Walgreens Boots (WBA) stock experienced a notable surge. On Monday, WBA stock jumped around 7% to 18.37 in above-average volume. Despite this increase, Walgreens stock is only up 3.7% in May and remains down nearly 30% in 2024. This continues a long-term decline that began in 2015, when the company was removed from the Dow Jones industrials stock index and replaced by Amazon.com (AMZN).
Walgreens’ Financial Performance
In 2023, Walgreens Boots revenue from its U.S. Walgreens chain made up 80% of its total sales. Despite the significant contribution of the U.S. chain to the company’s revenue, the potential sale of the U.K. Boots drugstores could have a substantial impact on the company’s financial performance. The outcome of the sale and its effects on the company’s stock price will be closely watched by investors and market analysts.
Conclusion
The potential sale of Walgreens Boots’ U.K. Boots drugstores has caused a surge in the company’s stock price. However, despite this positive news, the company’s shares continue to struggle, maintaining a downward trend that started in 2015. The outcome of the sale and its impact on the company’s financial performance will be a key point of interest for investors and market analysts.
