The stock of Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is now priced at $36.76 and the shares are -1.26 points down or -3.31% lower compared to its previous closing price of $38.02. The stock had 10.736 million contracts set over the past session. WBA shares’ daily volume is compared to its average trading volume at 6.351 million shares. However, it has a float of 718 million and although its performance was -6.94% over the week, it’s one to watch. Analysts have given the WBA stock a yearly average price target of $42.72 per share. It means the stock’s upside potential is 16.21% with the WBA share price recently placing at $36.5 to $37.96. However, some brokerage firms have priced the stock below the average, including one that has called $37.
The shorts are running away from the Walgreens Boots Alliance, Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the WBA shares have declined. Short interest in the stock represents just 2.44% of its float, but the volume has dropped by -1376993. The volume of shorted shares dropped to 17.539 million from 18.916 million shares over the last two weeks. The average intraday trading volume has been 4.865 million shares, which means that days to cover moved to roughly 3.60538.
In the last trading session, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) dropped by -$2.74 over the week and lost -$4.17 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $64.5. The stock recorded its established 52-week high on 11/05/19.
Since 09/01/20, the stock has traded to a low of $36.5 at 0.3%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 0.45. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Walgreens Boots Alliance, Inc.’s two-week RSI is 28.51. This suggests that the stock is overbought at the moment and that WBA shares’ price movement remains not stable. The stochastic readings are equally revealing at 4.07% meaning the WBA share price is currently in overbought territory.
The technical chart shows that the WBA stock will likely settle at between $37.65 and $38.53 per share. However, if the stock dips below $36.19, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $35.61.
Currently, the stock is trading in the red of MACD, with a reading of -1.04. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at UBS raised their recommendation for WBA from Sell to Neutral in April 06 review while maintain their target price of $49 to $44. Deutsche Bank analysts upgraded their recommendation of the stock from Sell to Hold while keeping its target price at $51 to $43 in a flash note released to investors on April 03. Wells Fargo seeing the stock struggling downgraded it from Outperform to Market Perform on December 11 placing it at $65 to $61.
The average rating for the WBA equity is 3.09 and is currently gathering a bearish momentum. Of 22 analysts tracking Walgreens Boots Alliance, Inc. polled by Reuters, 20 rated WBA as a hold. The remaining 2 analysts were split evenly. However, the split wasn’t equal as a majority (0) rated it as a buy or strong buy. 2 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the WBA stock price is 7.06X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 43.2 below the group’s average of 115.6. Walgreens Boots Alliance, Inc. has its P/E ratio at 1.5, which means that the stock is currently trading at a discount relative to the 1.5 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Walgreens Boots Alliance, Inc. (NASDAQ:WBA) will decrease by about -0.26%, which will see them reach $34500 million. The company’s full-year revenues are, however, expected to increase by about 1.7%, up from $137000 million to $139000 million. WBA’s expected adjusted earnings should drop almost -32.17% to end up at $0.97 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -21.7% to record $4.69/share.