Walgreens Drops After CEO Steps Down

Walgreens Boots Alliance (WBA) shares fell 1.7% on Monday after its CEO Stefano Pessina announced his resignation. Pessina has agreed to take up the role of executive chairman of the board, until the company finds a new CEO. As a result, James Skinner will step down as executive chairman but will remain on the board for a smooth transition, the company said.

Pessina took up the CEO role in July 2015 and has served as the executive vice-chairman since Jan. 2015. Skinner has served as executive chairman since Jan. 2015.

On July 9, Walgreens reported a $1.71 billion quarterly loss. It also announced 4,000 jobs cuts and suspended its share repurchase program. However, the company did not cut its dividend amid the coronavirus pandemic.

Currently, the Street has a cautious outlook on WBA. The Hold analyst consensus is based on 10 Holds and 1 Sell. The average price target of $43.27 implies an upside potential of 8.6%. (See WBA stock analysis on TipRanks).

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