Ontario Teachers Pension Plan Board, a Canadian pension fund manager, has reduced its stake in Walgreens Boots Alliance by 73.7% during the fourth quarter of the fiscal year 2022. According to the recent filing with the Securities & Exchange Commission (SEC), Ontario Teachers Pension Plan Board sold 35,378 shares and now owns only 12,599 shares of Walgreens Boots Alliance stock. This move was made despite a recent announcement of a quarterly dividend payment scheduled for June 12th. Shareholders who held stocks until May 19th will receive $0.48 per share in dividends. The current data indicates that Walgreens Boots Alliance is trading at a dividend payout ratio of -52.60%.
Several research analysts have recently commented on Walgreens Boots Alliance’s performance in the stock market; JPMorgan Chase & Co., Mizuho, Deutsche Bank Aktiengesellschaft, UBS Group and StockNews.com have all given their opinion on this matter. These research firms have given varied recommendations ranging from “neutral” to “buy,” with an average rating of “Hold” for Walgreens Boots Alliance as per Bloomberg data analysis.
Despite this mix of opinions from various research firms about the future prospects of Walgreens Boots Alliance, Ontario Teachers Pension Plan Board’s decision to reduce its stake raises some concern among investors and Wall Street analysts alike regarding the company’s future financial health and standing within the pharmaceutical retail industry. However, it is worth noting that it is not uncommon for large institutional investors like pension funds to sell off their positions or adjust holdings to realign their portfolios in accordance with new investment strategies or changing market conditions.
The data from SEC filings indicates that as of June 1st, 2023, Alberta Investment Management Corporation has become one of the most significant shareholders of Walgreens Boots Alliance by acquiring more than seven million shares towards raising its position to around twelve million shares according to reports by Bloomberg. Investors are keeping an eye on how this change in ownership and interest by one of the largest Canadian investment managers will affect the company’s performance and future growth.
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Institutional Investors and CEO Boost Confidence in Walgreens Boots Alliance
Walgreens Boots Alliance Attracts Institutional Investors, CEO Purchases Shares
Walgreens Boots Alliance (WBA), the pharmaceutical giant based in Deerfield, Illinois, has caught the attention of a number of institutional investors in recent months. Vanguard Group Inc., BlackRock Inc., State Street Corp, Bank of New York Mellon Corp and Federated Hermes Inc. have all increased their holdings in WBA over the last quarter by acquiring significant numbers of shares.
Vanguard Group Inc. purchased an additional 818,403 shares during Q3 2022 increasing their stake to 62,574,698 shares worth approximately $1.9 billion while Blackrock Inc.’s holding grew by 540,474 shares valued at $1.8 billion. Similarly, State Street Corp raised their position by over three million shares while Bank of New York Mellon and Federated Hermes raised theirs by nearly225 thousand and half a million respectively.
In addition to this strong show of faith from major investors in Walgreens Boots Alliance’s future growth prospects, CEO Rosalind G. Brewer recently purchased 10,000 shares herself for $339,500 and now directly owns nearly 370 thousand shares.
The company also announced a quarterly dividend that will be paid on June 12th to shareholders recorded on May 19th; they can expect to receive $0.48 per share as dividend payout representing an annualized yield of just over six percent.
Despite the positive financial movements experienced this year for WBA with earnings beating analyst expectations with each succeeding quarter since September last year showing revenue growth compared to last year’s figures- netting benefits from Covid related sales- share prices have seen drops dropping from its high point of &44:27 down to $30:37 witnessed on Thursday.
Sell-side analysts believe that the revenues will continue growing with earnings per share forecasted at &4:51 for FY2023 illustrating further development in all aspects of the business.
