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Walgreens Boots Alliance (WBA) Reports Lower Stake in AmerisourceBergen (ABC) after Stock Sale & Share Repurchase

Fintel reports that Walgreens Boots Alliance, Inc. (US:WBAGB:0LSZ) has filed a 13D/A form with the SEC disclosing ownership of 39,620,714 shares of AmerisourceBergen Corp. (ABC). This represents 19.6% of the company.

In their previous filing dated August 4, 2022 they reported 52,854,867 shares and 25.50% of the company, a decrease in shares of 25.04% and a decrease in total ownership of 5.90% (calculated as current – previous percent ownership).

In this most recent filing, the company reported details on a recent underwriting agreement and share repurchase:

On November 7, 2022, the Issuer and WBA Holdings entered into an underwriting agreement Morgan Stanley & Co. Pursuant to the Underwriting Agreement, WBA Holdings sold 10,000,000 shares of common stock to the Underwriter at a price of $154.60 per share, representing approximately 4.9% of the outstanding Common Stock as of November 7, 2022. The closing of the November 2022 Offering is expected to occur on November 10, 2022.

In addition, subject to the closing of the November 2022 Offering, the Issuer and WBA Holdings concurrently entered into a share repurchase agreement whereby the Issuer repurchased directly from WBA Holdings 3,234,153 shares of the Common Stock at a price per share equal to the price to the Underwriter for the November 2022 Offering.

The closing of the concurrent share repurchase is conditioned upon the closing of the November 2022 Offering. However, the November 2022 Offering is not conditioned upon the completion of the concurrent share repurchase.

The November 2022 Offering and the concurrent share repurchase is part of WBA’s efforts to continue to optimize its capital allocation to continue to support strategic initiatives and reduce indebtedness.

What are other large shareholders doing?

Vanguard Group Inc holds 18,927,971 shares representing 9.13% ownership of the company. In it’s prior filing, the firm reported owning 18,411,527 shares, representing an increase of 2.73%. The firm increased its portfolio allocation in ABC by 11.73% over the last quarter.

BlackRock Inc. holds 17,194,508 shares representing 8.30% ownership of the company. In it’s prior filing, the firm reported owning 16,455,417 shares, representing an increase of 4.30%. The firm increased its portfolio allocation in ABC by 13.78% over the last quarter.

Jpmorgan Chase & Co holds 7,521,705 shares representing 3.63% ownership of the company. In it’s prior filing, the firm reported owning 7,405,711 shares, representing an increase of 1.54%. The firm decreased its portfolio allocation in ABC by 84.73% over the last quarter.

State Street Corp holds 6,824,784 shares representing 3.29% ownership of the company. In it’s prior filing, the firm reported owning 6,931,262 shares, representing a decrease of 1.56%. The firm increased its portfolio allocation in ABC by 9.11% over the last quarter.

Fmr Llc holds 5,664,668 shares representing 2.73% ownership of the company. In it’s prior filing, the firm reported owning 5,141,665 shares, representing an increase of 9.23%. The firm increased its portfolio allocation in ABC by 25.65% over the last quarter.

What is the overall institutional sentiment?

There are 1763 funds or institutions reporting positions in AmerisourceBergen Corp.. This is an increase of 89 owner(s) or 5.32%.

Average portfolio weight of all funds dedicated to AmerisourceBergen Corp. is 0.3620%, an increase of 3.6428%. Total shares owned by institutions increased in the last three months by 3.78% to 167,283,653 shares.

Based on this information, institutional sentiment is bullish.

This article originally appeared on Fintel

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