Ed Lin
Dollar Tree and Walgreens Boots Alliance just saw large stock purchases by the officers who have oversight of the retailers' finances.
Shares of both companies have been trailing behind the market. In 2023, when the S&P 500 surged 24%, Dollar Tree stock ended the year flat while Walgreens stock dropped 30%. So far this year, the index has risen 9.1%, while shares of Dollar Tree and Walgreens have slipped 8.0% and 27%, respectively.
Dollar Tree's latest earnings and guidance disappointed investors and the company said it would close 600 of its Family Dollar stores, sending shares down another leg in March.
Walgreens' latest quarterly results exceeded expectations, but pharmacy chains are facing a tough macroeconomic environment. Walgreens was removed from the Dow Jones Industrial Average in late February, lowering its public profile and eliminating the need for funds that track the index to own the shares. Walgreens was succeeded as a Dow component by Amazon.com.
Dollar Tree Chief Financial Officer Jeff Davis paid $245,000 on April 1 for 1,800 shares, an average price of $136 each. According to a form he filed with the Securities and Exchange Commission, Davis now owns 19,047 shares.
Dollar Tree didn't respond to a request to make him available for comment on the stock purchases. Davis joined Dollar Tree in October 2022. He last bought Dollar Tree stock on the open market in March 2023, when he paid $250,000 for 1,790 shares, an average price of $139.06 each.
Walgreens CFO Manmohan Mahajan had been named to the post on a permanent basis for a little more than a month before making his first open-market stock purchase. Mahajan paid $116,300 on April 2 for 6,000 shares, an average price of $19.38 each. He now owns 166,969 shares in a personal account, including restricted stock units.
"This underscores my confidence in WBA's future," Mahajan said in an emailed statement. "I'm highly encouraged by the progress being made, and how we are well-positioned to deliver care for communities while delivering long-term growth and value for our stakeholders."
Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.
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(END) Dow Jones Newswires
April 12, 2024 21:30 ET (01:30 GMT)
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