Why the WBA Weekly
Options Trade was Originally Executed!
Dow component Walgreens
Boots Alliance Inc (NASDAQ:WBA) received
comments from analysts that bolstered its share price.
Walgreens Boots Alliance were up 3% on Monday, and this trend is expected to
Analysts at JPMorgan
upgraded their rating on Walgreens stock from neutral to overweight.
Analyst Lisa Gill upgraded shares of Walgreens to Overweight from Neutral and increased her
target for the stock price to $30 from $27. The call comes after the company
reported disappointing financial results and announced the appointment of a new
chief executive officer.
The stock has fallen 41% this year, and was on pace for its worst year on
The WBA Weekly
Options Trade Explained.....
** OPTION TRADE: Buy WBA NOV
17 2023 22.500 CALLS - price at last close was $0.56 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the WBA Weekly Options (CALL) Trade on Tuesday, October 24, 2023, for $0.33.
Sold the WBA weekly options contracts on Thursday, October 26, 2023 for $0.62; a potential profit of88%.
Don’t miss out on further trades – become a
Walgreens Boots Alliance.....
Boots Alliance Inc. is a world-renowned healthcare, pharmacy, and retailing
company. Founded in 1901 by John Boot and Charles R. Walgreen, the company has
grown to become a leader in the industry, operating in nine countries and
providing access to healthcare services to millions of people around the world.
Walgreens Boots Alliance operates through three main segments: U.S. Retail
Pharmacy, International, and U.S. Healthcare.
Retail Pharmacy segment includes the Walgreens business, which operates health
and wellness services, retail drugstores, specialty and home delivery pharmacy
services, and an equity method investment in AmerisourceBergen. Walgreens
stores have locations in all 50 U.S. states, the District of Columbia, Puerto
Rico, and the U.S. Virgin Islands, offering access to consumer goods and
services, pharmacy, photo department, and health and wellness services.
Walgreens also operates online stores like Walgreens.com, Drugstore.com,
VisionDirect.com, and Beauty.com.
International segment consists of pharmacy-led health and beauty retail
businesses outside the United States and a pharmaceutical wholesaling and
distribution company in Germany. This segment includes the Boots brand, which
has a history stretching back over 170 years in the United Kingdom, and stores
in Ireland and Thailand with Boots franchise operations in the Middle East and
Indonesia. The remainder of the division comprises Farmacias Ahumada (FASA)
pharmacies in Chile and Benavides in Mexico. The Pharmaceutical Wholesale
Division, including the Alliance Healthcare brand, supplied medicines and other
healthcare products to more than 115,000 doctors, health centers,
pharmacies, and hospitals annually in eleven countries through 306 distribution
centers. AmerisourceBergen purchased most of the Alliance Healthcare wholesale
division in June 2021 for $6.275bn in cash.
Healthcare segment is a consumer-centric, technology-enabled healthcare
business that engages consumers through a personalized, omnichannel experience
across the care journey. This segment includes the operation of 334 VillageMD
clinics, including 146 co-located clinics, 124 standalone clinics, and 64
Boots Alliance produces many brands, including Soltan and Botanics, Boots
Pharmaceuticals, and Boots Laboratories, No. 7, that Alliance Boots and
Walgreens sought to launch internationally following the first share purchase
in 2012. These brands include the famous No. 7 beauty serums, developed in
Nottingham, the UVA 5-star suncare protection by Soltan, and the Botanics
range, developed in partnership with the Royal Botanic Gardens, Kew. Boots'
brand range includes medicines, healthcare products, skincare, and many more.
Walgreens also has a self-branded line of products called "Well at
fiscal year 2020, Walgreens Boots Alliance reported earnings of US$456 million.
The reported revenue was US$139.5 billion, an increase of 2.5% over the
previous fiscal cycle. As of 2022, Walgreens Boots Alliance is ranked #18 on
the Fortune 500 rankings. The company pays a Quarterly dividend of $0.48,
representing an annual dividend yield of 5.08%. Wall Street analysts consider
Walgreens stock to be Undervalued.
Boots Alliance has 862,503,540 shares outstanding, and its market cap is
currently $31.99B. The company’s EPS estimate is $1.12, and its most recent
earnings report saw it beat expectations with an EPS of $1.16. Following the
earnings report, the stock price went down -6.135%. Among the most significant
hedge funds holding Walgreens Boots Alliance’s shares is Antipodes Partners
Ltd., which owns shares valued at $58M.
Boots Alliance is a global healthcare leader committed to providing
high-quality services and products to its customers. The company’s innovative
strategies have earned it a reputation as a reliable and reputable partner for
healthcare providers and consumers. With its wide array of products and
services, Walgreens Boots Alliance is well-positioned to continue growing and
meeting the needs of its customers for years to come.
Further Catalysts for the Weekly Options Trades…..
acknowledges that Walgreens still faces some serious challenges. The drugstore
retail space remains quite competitive, and macroeconomic pressures could hurt
overall profitability. However, the analysts believe that the recent leadership
changes that put Tim Wentworth into the CEO position give Walgreens the ability
to overcome some of its long-standing problems and improve its overall business
On Oct. 12, Walgreens reported weaker earnings and revenue than Wall
Street had expected and offered less upbeat financial guidance for fiscal 2023
than analysts had expected. But it was the announcement the day before that Tim
Wentworth was stepping in as the new CEO that has raised hope on Wall Street.
“Today commences a new era for shares of WBA as Tim Wentworth assumes the
CEO role,” Gill wrote in a research note Monday. “… While there is clearly work
to be done, with a refreshed healthcare-focused management team and a lowered
but credible bar that WBA has an opportunity to remove several overhangs in the
coming quarters and improve performance.”
The analyst wrote that she is encouraged by the experience Wentworth is
bringing to Walgreens from previous roles, including at Express Scripts and
Cigna Group (CI). She also anticipates Walgreens will cut its quarterly
dividend of 48 cents a share, and will prioritize reducing debt.
is predicated on an upgraded management team executing vs an achievable bar
from trough results and a valuation that appears to more than incorporate the
uncertainty of the current situation,” Gill wrote. Walgreens currently trades
at 6.2 times forward earnings, which is below the five-year average of 8.7
According to the issued ratings of 12 analysts in the last
year, the consensus rating for Walgreens Boots Alliance stock is Hold based on
the current 1 sell rating, 7 hold ratings and 4 buy ratings for WBA. The
average twelve-month price prediction for Walgreens Boots Alliance is $33.15
with a high price target of $54.00 and a low price target of $21.00.
Shares of Walgreens were 4.8% higher
to $22.28. The stock was the best performer Monday in the S&P 500, Dow
Jones Industrial Average and Nasdaq 100.
Walgreens Boots Alliance Stock has a
market cap of $18.97 billion, a PE ratio of -6.15, a P/E/G ratio of 1.27 and a
beta of 0.72. The company has a current ratio of 0.63, a quick ratio of 0.30
and a debt-to-equity ratio of 0.29. Walgreens Boots Alliance has a twelve month
low of $20.48 and a twelve month high of $42.29. The stock has a fifty day
simple moving average of $23.21 and a 200-day simple moving average of $28.59.