What Happened?
Shares of pharmacy chain Walgreens Boots Alliance (NASDAQ:WBA) jumped 19.9% in the afternoon session after The Wall Street Journal reported that the company (WBA) is in talks to sell itself to private equity firm Sycamore Partners. Most acquisitions close at a premium, raising the possibility that existing investors could exit their positions at a higher price if Walgreens strikes a deal with a buyer.
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What The Market Is Telling Us
Walgreens’s shares are quite volatile and have had 15 moves greater than 5% over the last year. But moves this big are rare even for Walgreens and indicate this news significantly impacted the market’s perception of the business.
Walgreens is down 60.8% since the beginning of the year, and at $10.44 per share, it is trading 60.8% below its 52-week high of $26.65 from January 2024. Investors who bought $1,000 worth of Walgreens’s shares 5 years ago would now be looking at an investment worth $178.74.
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