In a recent transaction, Walgreens Boots Alliance (NASDAQ:WBA), Inc. has sold a significant portion of its holdings in Cencora, Inc. The sale, which took place on May 22, 2024, involved 1,859,390 shares of Cencora's common stock at a price of $215.1244 per share, resulting in a total transaction value of approximately $400 million.
This sale by Walgreens Boots Alliance Holdings LLC, a wholly owned subsidiary of Walgreens Boots Alliance, Inc., was conducted in a private transaction directly with Cencora. Following the sale, Walgreens Boots Alliance Holdings LLC still retains a substantial number of shares in Cencora, with their ownership standing at 24,418,171 shares.
The shares were initially acquired in accordance with the Framework Agreement established between Walgreens, Alliance Boots GmbH, and Cencora back in March 2013. The ownership and sale of these shares have been disclosed in various filings, including Schedule 13D amendments and Form 8-Ks by both Walgreens and Cencora over the years.
The transaction was signed off by Manmohan Mahajan, who holds the positions of Executive Vice President and Global Chief Financial Officer at Walgreens Boots Alliance, Inc., as well as President of Walgreens Boots Alliance Holdings LLC.
Cencora, Inc., traded under the ticker NYSE:COR, is known for its role in the wholesale distribution of drugs, proprietary products, and druggist's sundries. Walgreens Boots Alliance, Inc. has a diverse portfolio of retail and wholesale pharmaceutical, health, and wellness services, and has been a significant investor in Cencora for several years.
Investors and market watchers often keep a close eye on such transactions as they can indicate strategic shifts or financial maneuvers by major stakeholders like Walgreens Boots Alliance. The sale represents a notable change in the investment landscape for both companies, although the full implications of this move will unfold over time.
InvestingPro Insights
In light of Walgreens Boots Alliance's recent divestment from Cencora, Inc., investors may find it useful to consider the current financial metrics and market behavior of Cencora. According to real-time data from InvestingPro, Cencora has a market capitalization of $43.67 billion. This valuation reflects the company's significant presence in the healthcare sector, particularly in wholesale distribution. Cencora's P/E ratio stands at 23.7, which might be considered high relative to near-term earnings growth, suggesting that investors are expecting higher earnings in the future.
The company's revenue for the last twelve months as of Q2 2024 was reported at $276.54 billion, with a growth rate of 11.71%, indicating a robust upward trajectory in sales. Despite this strong revenue growth, Cencora's gross profit margin is on the lower side at 3.4%, which is an area that potential investors may want to examine further.
From the perspective of InvestingPro Tips, it's noteworthy that Cencora's management has been actively buying back shares, signaling confidence in the company's value. Additionally, Cencora has a commendable history of raising its dividend for 19 consecutive years, which could be appealing to income-focused investors. However, it's also important to be aware that 11 analysts have revised their earnings estimates downwards for the upcoming period, which could impact future stock performance.
For investors looking for more comprehensive analysis and additional insights, InvestingPro offers a broader range of tips. In fact, there are 17 more InvestingPro Tips available for Cencora, which can be accessed by visiting https://www.investing.com/pro/COR. To get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, readers can use the coupon code PRONEWS24.
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