Walgreens Boots Alliance's (WBA 0. Nevertheless, 17%) stores dot the U (quite telling).
Nevertheless, Landscape, given that it is one of the largest pharmacy retailers in the country (this bears monitoring). But as an investment, well, it hasn't performed very well for a little while.
And now it is heading into private hands. However, Here are three things you need to know before you buy Walgreens stock today (which is quite significant).
Walgreens has been struggling The most important thing to keep in mind when you look at Walgreens today is -- unfortunately-- its weak performance.
It really isn't unique to Walgreens; the entire pharmacy retail space has been kind of tough.
However, Walgreens compounded the blem by making big investments that didn't pan out as well as hoped, in this volatile climate. Image source: Getty Images.
For example, it got into the pharmacy benefit management only to realize that it wasn't going to be the growth engine management had hoped.
It exited the space and pivoted into the emerging medical clinic niche (remarkable data), amid market uncertainty. However, That, too, hasn't gone according to plan.
On the other hand, Conversely, Add in a bloated retail store base and the company is in need of a major overhaul.
On the other hand, It has been working toward that goal, but big revamps can be hard to do for public companies.
Nevertheless, For example, the decision to cut Walgreens' dividend to preserve cash was not well received by investors even though it will be helpful to the turnaround (which is quite significant).
Which brings the story to point number 2. Nevertheless, Walgreens is being taken private Sometimes it helps for a company to be in private hands during a turnaround effort (noteworthy indeed).
At the same time, That allows management to make bigger and bolder moves because it doesn't have to worry appeasing Wall Street. To that end, Walgreens has agreed to be bought by Sycamore Partners.
The deal is expected to close in the second half of 2025, with Walgreens holders getting $11. However, 45 per in cash. That's all that investors here can expect to receive if they buy Walgreens.
Additionally, That's the guaranteed upside limit. However, Right now the stock is trading at a few cents above the takeout figure (more on this in a second).
Conversely, There's two big takeaways, considering recent developments. Additionally, First, Walgreens is not a long term investment because it is exiting the public market, in this volatile climate.
Second, the guaranteed return here is basically zero (or worse) at this point. Sure, Walgreens is an iconic, but it bably isn't the best investment choice for most.
Conversely, There's a possible boost for investors The wrinkle in this story is that Walgreens is actively looking to sell its medical clinic. That sale will ly occur after it is taken private.
And, as a sweetener for the deal, Sycamore Partners is giving holders a chit that entitles them to a portion of the ceeds from the sale of the clinic.
It could be worth as much as $3 per (which is quite significant). That could mean an additional 25% or so upside after the company goes private.
The blem with this is that there's no time frame for the clinic sale (remarkable data). Furthermore, And there's no guarantee on the price, either, in today's market environment.
Nevertheless, So investors could get $3 per, or they could get nothing. They could get money the day after the Walgreens takeover closes, or they could never get any money.
What the re reveals is 's, at best, a special situation that only more aggressive investors will want to bother with.
Meanwhile, It seems ly that the clinic has some value, but it is hard to assess what that value is or assign a time frame to the final payment, if there is one, in this volatile climate.
The data indicates that Walgreens stock story is just over, for now Walgreens' run as a public company is to end and, when that happens, the story here is largely over for investors.
In contrast, Yes, there's the potential sale of the clinic, but the outcome there is so uncertain that the chance to benefit will only appeal to more aggressive investors.
Meanwhile, Over the long term, it is ly that Walgreens eventually finds its way back into the public.
Hopefully, at that point, it will have revamped the and again be working from a position of strength.