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Why Walgreens Boots Alliance Shares Are Tumbling

Why Walgreens Boots Alliance Shares Are Tumbling

Walgreens Boots Alliance ( (WBA) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.

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Walgreens Boots Alliance Inc. saw a notable drop in its stock price following its decision to suspend its dividend. This move was made to conserve cash for litigation costs and debt refinancing, crucial components of its turnaround strategy. While some analysts view the decision as a necessary step to reset financial priorities, it has led to technical selling pressure, particularly among dividend-focused investors. The stock’s decline was further compounded by ongoing legal issues, including a lawsuit from the U.S. Department of Justice over opioid prescriptions. Despite these challenges, Walgreens reported better-than-expected adjusted earnings per share and revenue growth, driven by its focus on retail pharmacy and healthcare expansion. However, analysts remain cautiously optimistic due to the company’s ongoing uncertainties and potential stock volatility.

More about Walgreens Boots Alliance

YTD Price Performance: 24.70%

Average Trading Volume: 24,360,247

Technical Sentiment Consensus Rating: Buy

Current Market Cap: $9.9B

For further insights into WBA stock on TipRanks’ Stock Analysis page.

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