Friday, August 3, 2018

KAZ Mineral shares fall on Russian copper deal

Shares in KAZ Minerals PLC (KAZ.LN) fell Thursday after the company said it will buy the Baimskaya copper project in Russia for $900 million from Aristus Holdings Ltd., a company partly owned by Russian billionaires Roman Abramovich and Alexander Abramov.

KAZ said it will pay an initial $675 million for a 75% stake in Baimskaya, located in the Chukotka region in the far east of Russia. The first payment will consist of $436 million in cash, and 22.3 million new KAZ shares, valued at $239 million.

Deferred consideration of $225 million in cash or shares for the remaining 25% interest will be paid either on the achievement of commercial production, or March 31, 2029, according to KAZ.

KAZ said Baimskaya is one of the world's most significant undeveloped copper assets, with resources of 9.5 million tons of copper, and 16.5 million ounces of gold. The company forecasts average annual production of 250,000 copper tons and 400,000 gold ounces over the first ten years of operations.

The capital expenditure required to develop the mine is estimated at $5.5 billion said KAZ, which said it will finalize the development strategy and financing during a feasibility study. KAZ said Aristus won't contribute to the development spending, but has a "strong incentive" to assist the delivery of the project due to the deferred consideration. Mr. Abramov, one of Aristus's owners, is chairman of London-listed steel producer Evraz PLC (EVR.LN).

Shares at 0805 GMT were down 111.20 pence, or 14%, at 708.60 pence.

Thursday, August 2, 2018

Walgreens Boots Alliance Inc (WBA) Receives Consensus Recommendation of “Hold” from Anal

Walgreens Boots Alliance Inc (NASDAQ:WBA) has received a consensus rating of “Hold” from the twenty-three analysts that are currently covering the stock, Marketbeat reports. Two analysts have rated the stock with a sell recommendation, twelve have given a hold recommendation, seven have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $76.38.

WBA has been the topic of a number of research reports. Loop Capital raised their price target on shares of Walgreens Boots Alliance to $80.00 and gave the company a “buy” rating in a research note on Friday, June 29th. Leerink Swann cut their price objective on shares of Walgreens Boots Alliance from $75.00 to $70.00 and set a “market perform” rating for the company in a report on Wednesday, May 23rd. Jefferies Financial Group set a $85.00 price objective on shares of Walgreens Boots Alliance and gave the company a “buy” rating in a report on Tuesday, April 3rd. BidaskClub downgraded shares of Walgreens Boots Alliance from a “hold” rating to a “sell” rating in a report on Tuesday, May 8th. Finally, Pivotal Research cut their price objective on shares of Walgreens Boots Alliance from $70.00 to $60.00 and set a “hold” rating for the company in a report on Monday, July 2nd.

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Shares of WBA stock traded up $0.05 during mid-day trading on Friday, hitting $64.98. 7,553,656 shares of the stock were exchanged, compared to its average volume of 10,995,822. The company has a quick ratio of 0.47, a current ratio of 0.93 and a debt-to-equity ratio of 0.44. Walgreens Boots Alliance has a 52-week low of $59.07 and a 52-week high of $83.89. The firm has a market cap of $64.49 billion, a P/E ratio of 11.11, a PEG ratio of 1.07 and a beta of 1.12.

Walgreens Boots Alliance (NASDAQ:WBA) last issued its quarterly earnings results on Thursday, June 28th. The pharmacy operator reported $1.53 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.47 by $0.06. The firm had revenue of $34.33 billion for the quarter, compared to analyst estimates of $34.15 billion. Walgreens Boots Alliance had a net margin of 3.36% and a return on equity of 21.22%. Walgreens Boots Alliance’s quarterly revenue was up 14.0% compared to the same quarter last year. During the same period last year, the company posted $1.33 EPS. analysts anticipate that Walgreens Boots Alliance will post 5.97 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 12th. Investors of record on Monday, August 20th will be given a dividend of $0.44 per share. The ex-dividend date of this dividend is Friday, August 17th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 2.71%. This is a boost from Walgreens Boots Alliance’s previous quarterly dividend of $0.40. Walgreens Boots Alliance’s dividend payout ratio (DPR) is presently 31.37%.

In other Walgreens Boots Alliance news, COO Ornella Barra purchased 1,700,000 shares of the firm’s stock in a transaction on Monday, July 16th. The stock was bought at an average price of $65.15 per share, with a total value of $110,755,000.00. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Stefano Pessina purchased 1,697,438 shares of the firm’s stock in a transaction on Monday, July 16th. The stock was acquired at an average cost of $63.92 per share, with a total value of $108,500,236.96. The disclosure for this purchase can be found here. Company insiders own 14.80% of the company’s stock.

A number of hedge funds have recently modified their holdings of the business. LSV Asset Management lifted its position in shares of Walgreens Boots Alliance by 101.9% during the 1st quarter. LSV Asset Management now owns 7,426,687 shares of the pharmacy operator’s stock worth $486,225,000 after purchasing an additional 3,747,907 shares during the last quarter. FIL Ltd lifted its position in shares of Walgreens Boots Alliance by 1,062.9% during the 1st quarter. FIL Ltd now owns 2,711,135 shares of the pharmacy operator’s stock worth $177,499,000 after purchasing an additional 2,478,006 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec lifted its position in shares of Walgreens Boots Alliance by 32.1% during the 1st quarter. Caisse DE Depot ET Placement DU Quebec now owns 9,966,798 shares of the pharmacy operator’s stock worth $652,526,000 after purchasing an additional 2,419,053 shares during the last quarter. American Century Companies Inc. lifted its position in shares of Walgreens Boots Alliance by 1,196.1% during the 1st quarter. American Century Companies Inc. now owns 1,660,860 shares of the pharmacy operator’s stock worth $108,737,000 after purchasing an additional 1,532,720 shares during the last quarter. Finally, Thornburg Investment Management Inc. lifted its position in shares of Walgreens Boots Alliance by 37.5% during the 1st quarter. Thornburg Investment Management Inc. now owns 5,258,014 shares of the pharmacy operator’s stock worth $344,242,000 after purchasing an additional 1,433,645 shares during the last quarter. 60.27% of the stock is owned by institutional investors.

About Walgreens Boots Alliance

Walgreens Boots Alliance, Inc operates as a pharmacy-led health and wellbeing company. It operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA segment sells prescription drugs and an assortment of general merchandise, including non-prescription drugs, beauty products, photo finishing, seasonal merchandise, greeting cards, and convenience foods through its retail drugstores and convenient care clinics.

Further Reading: Understanding Price to Earnings Ratio (PE)

Analyst Recommendations for Walgreens Boots Alliance (NASDAQ:WBA)