Walgreens Boots Alliance Inc. (WBA) Stock Moves Down and Here’s Why

Walgreens Boots Alliance Inc. (NASDAQ: WBA) shares fell yesterday on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Shares of Walgreens Boots Alliance Inc. (NASDAQ: WBA) were downgraded by analysts at Zacks Investment Research in a note to their investors today. Zacks Investment Research currently has a rating of Hold on the stock. The one-year price target of $92.64 is above the opening price of $80.70, that has caused a fair amount of other analysts to report on the stock recently. Looking back over the last year, Walgreens Boots Alliance Inc. stock has a high of $95.74. Important and integral changes in the company’s procedures, future direction or industry can cause downgrades as the analysts feel that the future prospects for the security have diminished from the initial recommendation.

Meanwhile, U.S. stocks closed flat Thursday as trading stayed lukewarm in the wait for the nonfarm-payrolls report. U.S. employment growth likely picked up in September, putting pressure on the Federal Reserve to raise interest rates

For the week so far, the Dow industrials DJIA, -0.07% are down 0.2%, the S&P 500 SPX, +0.05% is off 0.4%, and the Nasdaq Composite COMP, -0.17% has lost 0.1%.

Walgreens Boots Alliance Inc. (NASDAQ: WBA) shares last traded at $80.30, a drop of $0.21 per share or -0.00 from the previous closing price. Opening at $80.70, they ranged from $79.74 and $80.70 throughout the day.

Walgreens Boots Alliance Inc. (NASDAQ: WBA) now has a market cap of 86.91B.

Walgreens Boots Alliance Inc.Trading Volume

The stock’s average daily volume is 4,278,040 shares out of a total float 937,319,000 and some 3,662,227 shares crossed the trading desk yesterday, lower than the norm. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or dissemination by institutional investors.

While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these retain substantial teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.

Walgreens Boots Alliance Inc. Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.

Trades for Walgreens Boots Alliance Inc. (NASDAQ: WBA) have ranged from $71.50 – 95.74, and the stock now has a 50-day MA of $81.39 and 200-day MA of $81.21. Today’s last price is 0.16% below the 52 week high of $95.74.

Earnings growth is a critical factor to look at when buying stocks and investors seek companies that have been successful at growing their earnings at least 25% or more over 3 consecutive years.

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