Walgreens Surges as Market is Positive on New CEO Target

Walgreens Boots Alliance Inc. (WBA:US) is reportedly considering Tim Wentworth, a former executive of Cigna Group (CI:US), to become its next chief executive officer, Bloomberg News reported.

Walgreens Boots is in search of a new CEO following the abrupt departure of Rosalind Brewer in August, after just two-and-a-half years in the role. During her tenure, the company's stock value declined significantly, and last quarter, management had to reduce full-year profit forecasts. 

Brewer aimed to expand Walgreens' presence in healthcare by increasing the company's stake in VillageMD and integrating primary care centers into hundreds of its stores, but the results were not immediate.

If Tim Wentworth is appointed as CEO, he would bring extensive healthcare experience to the position, making him a strong choice. Wentworth's familiarity with investors and his knowledge of payers and the pharmacy business are seen as valuable assets.

This is likely the key reason why WBA shares surged on Friday, ending the day by more than 6% higher. 

The stock is still down around 40% year-to-date. Last month, Walgreens Boots shares hit its 52-week low.

Congress members were mostly selling WBA shares this year. Rep. Ro Khanna reported the sale of $15,000 - $50,000 worth of shares of WBA back in July.