Commodity Channel Index
|Bid||94.76 x 1000|
|Ask||94.76 x 1400|
|Day's Range||94.19 - 95.25|
|52 Week Range||72.06 - 97.50|
|Beta (5Y Monthly)||0.61|
|PE Ratio (TTM)||12.47|
|Forward Dividend & Yield||1.68 (1.78%)|
|Ex-Dividend Date||May 15, 2020|
|1y Target Est||N/A|
(Bloomberg) -- Wall Street bankers are a lot less busy these days, what with the pandemic-induced drop-off in mergers and acquisitions and initial public offerings.But there’s a gritty, less glamorous dealmaking realm that has held up, and it’s helping banks offset some of that lost M&A and IPO revenue. A variety of companies, looking for liquidity in the weak economy, are selling off big stakes they’ve long held in public corporations.The latest came Monday when French pharmaceutical giant Sanofi launched a $13 billion sale of its 16-year-old, 21% stake in Regeneron Pharmaceuticals Inc. Regeneron, a New York-based biopharmaceutical firm, agreed to buy back about $5 billion of stock while the remaining $7 billion was sold to public investors in the largest public equity offering in the heath-care industry on record, according to data compiled by Bloomberg.Sanofi’s move came a few weeks after the pandemic’s first big deal of this kind, PNC Financial Services Group Inc.’s sale of its quarter-century-old stake of more than $13 billion in BlackRock Inc. The sale was the second-largest equity offering in the U.S. since Alibaba Group Holding Ltd.’s $25 billion IPO in 2014, according to data compiled by Bloomberg.PNC’s BlackRock stake was picked up by existing investors including Wellington Management, Capital Group Cos. and Fidelity Investments, according to people familiar with the matter. At least four state investment vehicles from the Middle East also took part in the offering, the people said.More such sales are coming. SoftBank Group Corp. raised $11.5 billion from transactions related to its stake in Alibaba Group Holding Ltd. which it bought in 2000, and another $2.9 billion capitalizing a 5% stake in its wireless arm. It is also closing in on a deal to sell its roughly 25% T-Mobile US Inc. stake, worth about $20 billion, with a portion being sold to Deutsche Telekom AG, people familiar with the matter have said.These transactions so far account for some of the biggest-ever announced of their kind. All told, there’s been $80.6 billion over 21 secondary offerings announced this year, which beats $53.1 billion over 36 such deals during the same period last year, according to data compiled by Bloomberg.That compares with a 33% drop to $22 billion in volume this year for IPOs in the U.S., the data shows. M&A activity involving U.S.-based targets plummeted 62% during the same period, sinking to $241 billion, according to the data.For Wall Street, the secondary offerings aren’t as lucrative as other dealmaking but they require less work. Banks usually receive about 1% to 2% of the deal size for advisers fees, compared with 5% to 7% for handling an IPO. But IPOs often involve intensive road shows lasting weeks.Jim Cooney, head of equity capital markets for the Americas at Bank of America Corp., said selling stakes can make sense in the current economy. “The market prefers that companies stick to their core mission and monetize non-strategic assets before selling their own equity,” he said.The offerings mark another way that companies, distressed or not, have been hunting for liquidity since the beginning of the pandemic. Some have drawn down revolving credit lines, sold bonds or new shares and sold stakes to private equity firms. Investors have been willing buyers of shares, attracted by the discounts since shares are marketed at prices below where the stock is trading.These stake sales have investors speculating on what holdings could be unwound next. Here are some sizable ones to watch based on Bloomberg’s data. Bloomberg News isn’t aware of talks about potential sales of these stakes.SoftBank, UberSoftBank is Uber Technologies Inc.’s largest shareholder with a 13% stake worth $7.7 billion. The Japanese conglomerate, led by founder Masayoshi Son, forecasts an operating loss of 1.4 trillion yen ($13 billion) for the fiscal year ended in March after writing down values of the Vision Fund’s investments including WeWork and OneWeb, a satellite operator that filed for bankruptcy.While it isn’t SoftBank’s oldest or most sizable investment, it could help to recoup some losses.Walgreens Boots, AmerisourceBergenWalgreens Boots Alliance Inc. is the largest shareholder in AmerisourceBergen Corp. with a 28% stake, worth about $5.3 billion. AmerisourceBergen recently made an offer to buy the Walgreens pharmaceutical wholesale division, Reuters reported earlier this month.The news had analysts speculating it could be part of a transaction related to Walgreens exiting part of its stake in AmerisourceBergen. The two companies first saw their paths intertwine in 2013 through a $400 million distribution deal that was supposed to last a decade.Nestle, L’OrealSanofi’s deal to sell Regeneron stock also had analysts speculating it could buy back L’Oreal SA’s 9.4% stake in the drug company.That, in turn, raises the possibility that L’Oreal would buy back a 23% stake worth $35.5 billion that Nestle SA holds in the French cosmetics maker. Since this is a 40-year plus relationship, the deal idea has been long pitched by bankers. Over the years, both sides have said that the investment is long-term.HKEx, Kweichow MoutaiHong Kong Exchanges & Clearing Ltd., owner of the Hong Kong Stock Exchange, has a 8.5% stake worth $20 billion in distiller Kweichow Moutai Co.Kweichow Moutai has become a favorite stock in mainland China, and is up 15% this year, while the Shanghai Shenzhen CSI 300 Index fell 6.7%. Cashing out could help fuel HKEx’s ambitions as a dealmaker. It made a surprise bid for the London Stock Exchange last year.Mondelez, Dr PepperMondelez International Inc., the maker of Oreo cookies and Triscuit crackers, holds about about 13% of Keurig Dr Pepper, following a deal in 2018 when Keurig took control of the soda maker. In early March, right as the pandemic led to lockdowns in North America, Mondelez, and another investor connected to JAB Holdings BV called Maple Holdings BV,sold a $1.1 billion stake in Dr Pepper.The broader question for investors is whether Mondelez could sell more of its shares, Bank of America analyst Bryan Spillane said at the time. Mondelez could tap its equity stakes as a source of liquidity to fund acquisitions, he said.Coke, MonsterThe Coca-Cola Co. owns more than 18% of Monster Beverage Corp.’s stock, making it the Corona, California-based company’s largest shareholder, and Monster also uses Coke’s distribution network. While Coke took the minority stake back in 2014 in a push to capitalize on promising new brands, the beverage giant is getting more aggressive with its own offerings, which has sparked tensions with Monster. Analysts have been trying to figure out what Coke’s energy products mean for the future of the partnership.Liberty Broadband, CharterA 26% stake in Charter Communications Inc. has become a crown jewel for John Malone’s Liberty Broadband Corp. which has guided the company on acquisitions since it invested in 2013. But Malone, a savvy dealmaker, has not stopped reshaping his portfolio even in a pandemic and helped pull off a merger of Liberty Global’s U.K. business with Telefonica SA’s earlier this month.(Updates with BlackRock investors in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Health care, one of the largest and most complex sectors, is comprised of a broad range of companies that sell medical products and services. The health care sector includes companies that sell drugs, medical devices, and insurance, as well as hospitals and health care providers. Health care stocks, as represented by the Health Care Select Sector SPDR ETF (XLV), have outperformed the broader market, providing investors with a total return of 16.3% compared to the S&P 500's total return of 5.9% over the past 12 months. In 2020, health care stocks have recouped nearly all of their losses since their March plunge while the broader market continues to suffer from the global coronavirus pandemic. The market performance numbers and the statistics in the tables in this story are as of May 20.
The Covid-19 downturn may be an opportunity for the three big U.S. drug distributors, UBS analyst Kevin Caliende says.
Moody's Investors Service ("Moody's") assigned a Baa2 rating to AmerisourceBergen Corporation's ("AmerisourceBergen") new senior unsecured bonds. Moody's expects that proceeds from the company's new $500 million bond issuance will be used for general corporate purposes, including refinancing activities.
It looks like AmerisourceBergen Corporation (NYSE:ABC) is about to go ex-dividend in the next 2 days. You can purchase...
Within a week of the Food and Drug Administration authorization of remdesivir as a COVID-19 treatment, clinicians are pushing the Trump administration to clarify how it is selecting which hospitals get access to the drug.
Good morning, and thank you all for joining us for this conference call to discuss AmerisourceBergen's Fiscal 2020 Second Quarter results. On today's call, we will be discussing non-GAAP financial measures.
The Infectious Disease Society of America (IDSA) is asking for more information on the federal government's plan for deciding how and where to supply the only drug so far shown to help patients infected with the novel coronavirus. The U.S. Food and Drug Administration on Friday gave emergency use authorization to Gilead Sciences Inc's remdesivir for patients with severe COVID-19 - the disease caused by the coronavirus - clearing the way for broader use in more hospitals around the United States. The federal government began distributing the drug this week.
Is AmerisourceBergen Corporation (NYSE:ABC) a good dividend stock? How can we tell? Dividend paying companies with...
AmerisourceBergen (ABC) delivered earnings and revenue surprises of 5.26% and 3.23%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
AmerisourceBergen Corp. reported Thursday fiscal second-quarter profit and revenue that rose above expectations, as the pharmaceutical distribution business got a boost from the COVID-19 pandemic, but the company lowered its full-year outlook. The drug products company also announced a new $500 million stock repurchase program and declared a regular quarterly dividend of 42 cents a share. Net income rose to $960.3 million, or $4.64 a share, from $27.1 million, or 13 cents a share, in the year-ago period, due primarily to tax benefits. Excluding non-recurring items, adjusted earnings per share rose 13.7% to $2.40, above the FactSet consensus of $2.27. Revenue grew 9.5% to $47.42 billion, above the FactSet consensus of $45.94 billion, as pharmaceutical distribution services revenue rose 9.3% to $45.6 billion to beat expectations of $44.44 billion. For 2020, the company cut its guidance ranges for adjusted EPS to $7.35 to 7.65 from $7.55 to $7.80 and for revenue growth to the low- to mid-single digit percentage range from the mid-to high-single digit range. The FactSet consensus for 2020 revenue of $188.8 billion implies 5.1% growth. The stock, which was still inactive in premarket trading, has gained 0.6% year to date while the S&P 500 has lost 11.8%.
Medical Product companies have partially mitigated the impact of the pandemic with the massive adoption of COVID-19 related healthcare-support products and services.
Walgreens owns about 27% of AmerisourceBergen and is its biggest customer. The two companies have explored various possibilities for combining operations in recent years, including a sale of AmerisourceBergen to Walgreens, on the theory that their drug distribution businesses would be better positioned to withstand competitive price pressures through even bigger scale. The coronavirus pandemic has weighed on Walgreens' retail business since then, however.
AmerisourceBergen (ABC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
AmerisourceBergen CEO Steven Collis joins Yahoo Finance’s Alexis Christoforous and Brian Sozzi to discuss how coronavirus has impacted the drug supply in the United States.
Zacks.com featured highlights include: Cardinal Health, AmerisourceBergen, Atlas Air Worldwide, Allegheny Technologies and CVS Health
Despite a significant economic downturn and a stock market pullback, a few large-cap companies in the healthcare sector managed to hold onto their positive total returns over the trailing 12-month period, observes Ned Piplovic, income expert and editor of DividendInvestor.
Moody's Investors Service, ("Moody's") today assigned a Baa2 rating to Walgreens Boots Alliance Inc.'s (Walgreens) new proposed senior unsecured notes offering. The net proceeds of the proposed senior unsecured notes will be used for general corporate purposes which may include repayment of indebtedness. Walgreens Baa2 senior unsecured rating reflects its large scale and the strong market positions of its three divisions; retail pharmacy USA, retail pharmacy international, and pharmaceutical wholesale.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of AmerisourceBergen Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
A total of 11 of the 50 largest Philadelphia-area public companies lost more than 50% of their stock value.
As stock prices hit record lows, executives are taking advantage of the opportunity to scoop up shares on the cheap and show confidence in the future of their companies.