Burgundy Asset Management Ltd. has increased its holdings in AmerisourceBergen Co. (NYSE:ABC) by 1.4%, according to a recent disclosure with the Securities & Exchange Commission. Burgundy now owns roughly 905,203 shares of ABC’s stock, making it the firm’s 17th largest holding and representing approximately 1.9% of their investment portfolio. The value of Burgundy’s investment in ABC stands at $150,001,000 as of the end of the most recent quarter.
However, some notable figures have sold off their stake in AmerisourceBergen recently. CEO Steven H. Collis sold 10,499 shares on March 14th for a total value of $1,574,850 at an average price of $150 per share and now holds 257,967 shares valued at $38,695,050. Major shareholder Walgreens Boots Alliance Inc., meanwhile, disposed of over a quarter million shares at an average price of $170.77 on May 11th – netting some $50m – leaving them with a remaining ownership interest worth just under $5.7bn.
Shares in AmerisourceBergen traded down slightly on Friday ($0.59) to reach $174.23 amidst total trading volume of just shy of half a million shares versus an average daily volume nearer one and a quarter million shares per day over the last year (i.e., prior to May 2023). The company currently boasts a market capitalization value of about $35bn while its price-to-earnings ratio sits at around 22 times earnings; the firm’s debt-to-equity ratio comes in relatively high by current market standards at near 9:1 but is counterbalanced somewhat by robust liquidity measures with quick and current ratios above .5 and .837 respectively.
We cannot say for certain why insiders are divesting some of their shares in ABC, but it’s worth noting that company insiders have reportedly sold over 326 thousand shares of company stock in the last three months alone, amounting to sale proceeds north of $55m altogether. In any event, with a current 52-week low of $135.14 and high of $176.62 in the rearview mirror, it remains to be seen where ABC’s price will go from here for those who are watching and waiting.
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Institutional Investors and Hedge Funds Show Growing Interest in AmerisourceBergen Amidst Strong Q2 Results and Insider Trading Activity
AmerisourceBergen (NYSE:ABC) is a pharmaceutical services company that has garnered significant attention from institutional investors and hedge funds in recent quarters. According to regulatory filings, Principal Financial Group Inc. increased its stake in AmerisourceBergen by 5.0% during the fourth quarter of the financial year 2022-23. As of May 20, 2023, Principal Financial Group Inc. owns over 281,056 shares of the company’s stock worth $46,574,000.
Canada Pension Plan Investment Board also strengthened its investment portfolio by increasing its holdings in shares of AmerisourceBergen by 2.2% during the third quarter of the same fiscal year. Canada Pension Plan Investment Board now owns more than 143,276 shares of AmerisourceBergen valued at $19,390,000 after purchasing an additional 3,100 shares in the last quarter.
Several other institutional investors have shown interest too with Signaturefd LLC boosting its holding by 7.8% and Peterson Financial Group Inc. acquiring a new stake during the fourth quarter.
Meanwhile, reputable brokerages have given a ‘moderate buy’ rating to AmerisourceBergen with an average price target of $181.62 per share as per data from Bloomberg on May 20th.
The Chief Executive Officer (CEO) Steven H.Collis sold about ten thousand shares recently estimated at more than $1.5 million while major shareholder Walgreens Boots Alliance Inc.transacted close to three hundred thousand shares at an estimated value exceeding $50 million on May11th.The transactions drew particular attention since insiders have sold over three hundred thousand shares worth over fifty-five million dollars in just ninety days.
Despite these developments among insiders and key stakeholders, testing results were robust for Q2 ending March31st. AmerisourceBergen Co. beat estimates and recorded $3.50 earnings per share (EPS) during the quarter, beating analysts’ consensus estimates of $3.29 by $0.21.
As per projections by equities research analysts, the company is set to post 11.88 EPS for the current fiscal year, indicating sustained growth over time.But AmerisourceBergen is not just growing, it is also a valuable investment with the company paying a quarterly dividend of $0.485 per share to stockholders of record on May 30th.UNQUOTE 
