Walgreens CFO Steps Down, Shares Decline

by Warren Seah

Shares of Walgreens Boots Alliance Inc. (WBA) fell 2.7% in afternoon trading on Friday, making it the leading decliner among the Dow Jones Industrial Average. This drop comes after the drugstore chain announced that its chief financial officer, James Kehoe, would be leaving the company after five years in the role.

Walgreens revealed that Kehoe’s departure was due to a “new opportunity,” and in the interim, Chief Accounting Officer Manmohan Mahajan will assume the role of CFO until a successor is found.

The surprise announcement of Kehoe’s departure comes at a crucial time for Walgreens, as the company is currently undergoing a transformation in the realm of healthcare delivery. Kehoe has played a significant role in this transition, making his leaving all the more unexpected.

UBS analyst Kevin Caliendo expressed his surprise at Kehoe’s departure and reiterated his neutral rating on Walgreens. The stock has already experienced a 15.4% drop over the past three months, while the Dow has gained 3.9%.

Walgreens’ stock decline is indicative of investor concern regarding the company’s leadership amidst its transformation efforts. The search for a new CFO and future developments in healthcare delivery will likely be key areas of focus for investors in the coming months.

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