American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Walgreens (WBA) stock drops 15%: what’s behind today’s crash?

by admin February 1, 2025
February 1, 2025
Walgreens (WBA) stock drops 15%: what’s behind today’s crash?

Investors in Walgreens Boots Alliance, Inc. (Nasdaq: WBA) have experienced a rollercoaster ride in 2025.

After a 25% surge earlier this month, driven by strong Q1 2025 earnings and revenue that beat expectations, the company’s stock is now down over 15% in early trading today.

While this sharp decline has nothing to do with sales performance, it is largely tied to Walgreens’ recent decision to suspend its dividend payouts.

Here’s a breakdown of what you need to know.

Why is Walgreens stock down?

As of the latest market update, Walgreens shares have dropped by more than 15%.

The primary reason behind the sharp fall is the company’s announcement to suspend its dividend payments to shareholders, a move aimed at improving its financial flexibility.

Walgreens stated that halting the dividend is a key part of its strategy to reduce debt and improve free cash flow, which is crucial as the company works on its retail pharmacy turnaround.

The decision also takes into account the company’s cash needs for the coming years, including debt refinancing and legal matters.

This marks a historic move, as Walgreens has been paying quarterly dividends for nearly 100 years, according to the Associated Press.

A dividend is a cash payment made to shareholders, typically every quarter.

What does Walgreens’ dividend suspension mean?

The suspension indicates that Walgreens needs to prioritize cash flow to fund its turnaround efforts.

Instead of rewarding investors with dividends, the company plans to use the funds for debt reduction and improving operational efficiency.

However, many investors who are attracted to dividend-paying stocks may view this as a negative sign.

The drop in stock price could suggest that some shareholders are selling their holdings due to the absence of dividend payouts.

Additionally, the suspension may signal that Walgreens’ efforts to turn its business around will take longer and be more complex than initially anticipated, contributing to investor uncertainty.

WBA stock still up for 2025

While today’s drop is significant, it’s important to note that Walgreens stock is still up about 3.8% year-to-date, largely due to the 25% jump earlier in the month.

However, the stock’s long-term trend remains concerning.

Over the past 12 months, Walgreens shares have fallen more than 57%, and the stock has plummeted around 81% over the past five years.

The company is grappling with multiple challenges, including shrinking profits, rising online competition, and declining reimbursement rates for prescription drugs.

In response, Walgreens recently announced plans to close up to 1,200 stores.

Despite the short-term volatility, investors will be watching closely to see if Walgreens’ new strategy can successfully address its financial struggles and ultimately lead to a recovery.

The post Walgreens (WBA) stock drops 15%: what’s behind today’s crash? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
What made Cipher Mining (CIFR) stock rally 30% on Friday?
next post
Portugal’s Novo Banco to launch IPO amid bank consolidation speculation

Related Posts

European stocks rally 8% as US tariff delay...

April 10, 2025

Boeing and Alaska Airlines point fingers at each...

March 16, 2024

TikTok ban update: Supreme Court deliberates potential US...

January 11, 2025

Alibaba stock price to double from here, veteran...

February 10, 2025

1 REIT stock to buy, 1 to sell:...

September 12, 2024

Biden administration may release short-term guidance on clean...

January 10, 2025

Sensex and Nifty rise, tracking Asian market cues;...

December 3, 2024

US markets slide as Trump’s tariffs rattle investors;...

February 2, 2025

GM’s EV market share doubles to 12%: will...

March 1, 2025

Why are Kering shares tumbling, and what does...

March 15, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • FBI raid on John Bolton’s home in Washington linked to classified documents

      August 25, 2025
    • Argentine senate deals blow to Milei’s austerity agenda with university budget boost

      August 25, 2025
    • Jackson Hole Symposium: what Powell said about economic effects of Trump’s tariffs

      August 25, 2025
    • At Jackson Hole, Fed Chair Powell signals possible cuts while warning of uncertainty

      August 25, 2025
    • Trump threatens to fire Fed Governor Lisa Cook amid mortgage fraud allegations

      August 25, 2025

    Categories

    • Business (3,753)
    • Investing (2,776)
    • Latest News (2,048)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved