Walgreens $WBA Stock Testing Downtrend Channel Breakout On Transforming Into Healthcare

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Walgreens $WBA stock is testing a downtrend channel breakout on November 7, 2022, as the company makes a major push to transform itself into a healthcare company.

Walgreens Push Into Healthcare

Walgreens push into more comprehensive health care continued with its VillageMD unit acquiring another urgent and primary care chain, Summit Health-CityMD, in a deal worth close to $9 billion.

VillageMD and Summit Health-CityMD will create a multi-payor platform to deliver quality, affordable care. VillageMD has deep expertise in value-based care and Summit Health-CityMD has experience in delivering multispecialty, connected care. It also makes Walgreen’s wide range of leading, integrated healthcare services even better.

Summit Health-CityMD has a firm presence in the northeast United States and in Oregon. VillageMD and Summit Health will have over 650 provider locations.

Walgreens has invested billions of dollars in VillageMD, and is opening primary care practices next to its drugstores so that it can more easily work together with physicians.

Walgreens raised its health care sales goal to between $14 billion and $16 billion in 2025, up from the previous forecast of $11 billion to $12 billion. The increase was due to the combination of VillageMD and CityMD.

Walgreens Boots Alliance agrees to pay $5B to settle opioid claims

On November 2, 2022, Walgreens said that it had agreed to a financial settlement and payment terms to settle lawsuits related to opioids. The company expects to settle all opioid claims against it by paying $5 billion over 15 years. The settlement frameworks exclude an admission of wrongdoing or liability by the company.

Walgreens invests $5.2B in VillageMD, raises stake to 63%

Dark Pool Trading In Walgreens $WBA Stock

Dark pool trades occurred in Walgreens $WBA stock on November 2, and 3, 2022. We think the dark pool trades were buy orders because of how $WBA stock rose following the prints hitting the tape.

Walgreens stock chart on November 7, 2022, with dark pool trades shown in orange bar, with a table to the right with the text TIME SYMBOL MESSAGE PRICE 11/03/22 WBA 177,100 DARK BLOCK $63M 2.13% AvgVol $35.74 11/02/22 WBA 205,144 DARK BLOCK $73M 2.5% AvgVol $35.81 11/02/22 WBA 137,769 DARK BLOCK $4.9M 1.68% AvgVol $35.81 11/02/22 WBA 175,605 DARK BLOCK S6.2M 2.14% AvgVol $35.81

Walgreens $WBA Stock Technical Analysis

Walgreens $WBA stock is in a technical weak downtrend. The stock has done a downtrend channel breakout and run back to $40.56 resistance seems likely.

Walgreens stock chart on November 7, 2022, on a downtrend channel breakout with a positive MACD and neutral money flow.

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