The multinational retail pharmacy chain, Walgreens Boots (WBA), experienced a significant increase in stock value on Monday after Bloomberg reported that it was considering selling its U.K. Boots drugstores. According to Bloomberg, the company is currently reaching out to potential buyers and engaging in initial discussions with interested parties regarding the sale of its Boots business, which is estimated to be worth $8.8 billion.
In 2023, Walgreens Boots generated a majority of its revenue from its U.S. Walgreens chain, accounting for 80% of its total sales. Prior to February, when it was removed from the Dow Jones industrials due to long-term decline that began in 2015, Walgreens was a constituent of the Dow Jones index and was replaced by Amazon.com on the Dow Jones industrials. Currently, Walgreens stock is included in the S&P 500 index.
During Monday’s market activity, WBA stock saw a 7% increase to $18.37 in above-average trading volume. Despite a 3.7% increase in May, Walgreens stock has declined by nearly 30% so far in 2024. For more coverage on this topic and other investing-related news and insights, you can follow Kit Norton on X (formerly known as Twitter) @KitNorton.
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In summary, Walgreens Boots is considering selling its U.K. Boots drugstores and reached out to potential buyers for its Boots business while experiencing a significant increase in WBA stock value on Monday during above-average trading volume despite declining by nearly 30% so far this year due to various factors such as long-term decline that began in 2015 and being removed from Dow Jones Industrials index due to performance issues among others.
