Walgreens Is Going Private. Is It Too Late to Buy WBA Stock?

All eyes are on Walgreens (WBA) this morning after the struggling chain of retail pharmacies agreed to go private in a $23.7 billion deal with Sycamore Partners. 

Its agreement with the private equity firm values its shares at $11.45 each, roughly in line with the price at which they’re trading at the time of writing. 

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Now that WBA has rallied into the price at which it’s being taken over, one may wonder if the ship has sailed already or is there opportunity still to invest and make a profit out of Walgreens stock. 

Is There Any Upside Left in Walgreens Stock?

If the drugstore chain wasn’t going private as a result of a takeover, a case could be made for potential gains in its stock beyond the buyout price over time.  

After all, a potential suitor could have helped put Walgreens back on track for growth, unlocking further upside in its share price in the long run.  

However, the multinational has agreed to go private. In such cases, once the stock climbs into the buyout price, there’s little to no room for any further upside. Walgreens says it expects the deal to close in the fourth quarter of 2025. 

Investors should note that despite today’s rally, Walgreens stock is currently down more than 45% versus its 52-week high. 

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Why Can’t WBA Shares Push Beyond the Buyout Price?

Since the company has agreed to go private at $11.45 a share, savvy investors will not be open to purchasing the stock above that price. 

While there may still be fluctuations in Walgreens stock due to market dynamics and speculation, they are unlikely to be significant enough to warrant new investment in hopes of seeing material further upside beyond the buyout price. 

All in all, the possibility of this health stock rallying past $11.45 is rather slim unless there are unexpected developments, including a competing bid or changes to the terms of its agreement with Sycamore Partners. 

Walgreens to Report its Q2 Earnings on April 8

On Friday, the company based out of Chicago, Illinois, also confirmed that it will report its financial results for the second quarter on April 8. 

Consensus is for Walgreens Boots Alliance to earn $0.53 cents a share in its current quarter, which would mean a 56% decline on a year-over-year basis. 

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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.