The Stock Performance of AmerisourceBergen Corporation Case Study Example

Paper Type:  Essay
Pages:  7
Wordcount:  1684 Words
Date:  2022-06-06

1. Introduction

AmerisourceBergen Corporation is a Drug industry which provides pharmaceutical distribution and pharmacy management solutions in the United States. AmerisourceBergen Corporation is referred to be one of the largest pharmaceutical services industries which provide services to global markets. The corporation is mainly focused on the pharmaceutical supply chain to healthcare and pharmacy. More so, AmerisourceBergen serve both pharmaceutical producers and the healthcare providers; the corporation provides drug distribution and related services which are designed to reduce the costs and improve the patient's outcomes. AmerisourceBergen has continuously succeeded because of the high scale production of its products, a high value of channeling the products and their positions in the healthcare industry. The corporations have a good record of producing high-quality goods which meet the demand of buyers such a healthcare doctors needs.

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The AmerisourceBergen has it's headquartered in Valley Forge, PA and it has its branches around the world. The corporations sell the pharmaceutical of about 20% in the US and distribute all over the country. The corporation struggles to take high rates out of the healthcare system by using their scale and their efficient operations to drive value to their clients. Despite supplying the pharmaceutical products, the corporations also provides business support and guiding and counseling services to help the customers to focus on their key strength and even caring for patients. The corporations have committed itself to the safety and security of the country`s pharmaceutical supply chain as it serves its customers.

2. The Stock That the Corporation Traded

AmerisourceBergen Corporation invests in the New York stock exchange market (NYSE). The stock exchange market was founded in 1972 under the Buttonwood tree, and it has continued to use human brokers and specialists on the exchange floors to execute traders for investors. NYSE stock market is more efficient to invest since most of its stock operates its business electronically. To invest in NYSE is easier than NASDAQ since it requires at $10 million in the pretax earnings over the prior three years.

3. Current Chief Executive Officer of the Corporations.

Steven H. Collis is the current chief executive officer of AmerisourceBergen corporations. Mr. Collis was elected to be chairman of Board in 2016 March. He has been the Chief Executive Officer and also the president of AmerisourceBergen Corporation since 2011 July. More so, before Mr. Collis was CEO, he served as the chief operating officer and the president of the corporations as from November 2010 to July 2011where he was elected officially. Steven was once the executive vice president and the president of AmerisourceBergen Drug Corporation in the US as from 2009 to 2010. Notably, Collis was the president of AmerisourceBergen Specialty Group from 2007 September. Steven H. Collis has been successful leaders, and therefore he had held a variety of other posts with its predecessors in the AmerisourceBergen Corporation before he was elected. Currently, he is also the directors of International Federation of Pharmaceutical Wholesalers who deals in the pharmaceutical products.

Steven H. Collis is also the chair of AmerisourceBergen Executive Committee and in the board; he introduces extensive business and the experience of operating in the wholesale pharmaceutical supply industry. More so, he brings to the board the knowledge of AmerisourceBergen thus its history and crucial executive leadership was experienced at AmerisourceBergen. Mr. Collis has a deep knowledge and understanding o the healthcare products supply and service market, also h understands the nature of market competitiveness of the pharmaceutical distribution business. So far, Mr. Collis has displayed a strategic vision, entrepreneurial, leadership skills and a strong creativity throughout his tenure at AmerisourceBergen.

4. Reasons for Investment

The corporation decides to invest in NYSE so get more profits and make the corporation to be well known over the world. The reasons that the corporations invest in NYSE stock since their market models result in lower stock price volatility. Due to the combined designate market maker oversight with the use of advanced technology it has led to a significant opportunity of having the best price when buying back shares. Other reasons that have to push the corporation to invest is so as to get support from NYSE. NYSE stock market offers a holistic support for corporations and companies at all stages of development thus the corporation will run smoothly.

5. The Appearance of the corporation in the News

AmerisourceBergen Corporation has been in the news in the last year and recently on May 2018. The Board of Directors of AmerisourceBergen Corporation who appeared in news declared that they will offer a quarterly dividend of $0.38 per Common share. The dividend was to be payable to all stockholders of record at the close of business on May 21, 2018. The performance of AmerisourceBergen has been ranked 11 on the Fortune 500 since it has more than $150 billion in the annual revenue. More so, the offer of dividends to the shareholders will encourage other investors to invest in the company. Dividends will encourage investors since they will receive income at the end of business from the profits that the corporation has made in its business. Also, giving dividends to the stockholders will act the competitive tool to attract more investors in the corporations.

6. The performance of the AmerisourceBergen stock over the past one year.

The corporation is best to invest because of some factors such as the variation in the prices of the stock of competing firms. Also, the state of the economy, the stock prices at that moment, change in stock Price to Earnings ratio, and the shift in supply and demand of stocks in the stock market as well as stock value and market capitalizations of companies.

From April to August 2017, the performance of AmerisourceBergen Company stock in its New York Stock Exchange market was relatively rising, denoted by a gently sloping positive slope in the graph. It is because of some favorable factors such as an increase in the demand and the reduction in the supply of the stocks in the market at that time. In this case, the number of subscribers from the public who were aiming to start purchasing the company shares had remarkably increased. More so, due to the favorable report released to the society that it was going to increase its profits from the high trading season, correspondingly raising its dividends payable to the public. As a result, since the investors in the company stock are attracted by increased profits from the company, they bought more stock progressively, leading to a progressive increase in the company daily stock volume. There was also an increase in the unit prices of the stock due to an increased stock market demand and coupled with the increased daily stock volumes, resulted in the excellent performance of the stock since more capital was reaped by the company. Additionally, there was a reduction in the supply of inventory in the New York Stock exchange, leading to increased prices which in turn lead increased company share earnings.

From the beginning of September to the start of November 2017, there was a decline in the stock earnings to AmerisourceBergen Corporations due to a decrease in the amount of the same types of shares in the NYSE market. Reducing its supply and raising its unit prices and the subsequent discouragement of the subscribers from purchasing them, lowering the company earnings. From 1st November to 30th February 2018, there was a constant appreciation in the value of stock earnings to AmerisourceBergen Company, contributed by the increase in there demand and the subsequent increase in their unit pricing. The daily stock volume also rose, increasing the net capital earnings from their sales. It is a period that was followed by a notable decline in the performance of the AmerisourceBergen Company, from 1st March to 30th April 2018, due to the weak economic conditions that result from political interference and the unscrupulous increase in the unit stock pricing, discouraging the investors.

7. The stock performance of AmerisourceBergen Corporation for the past two weeks.

The AmerisourceBergen Corporation's stock performance for the last two weeks is seen to be appreciated in return for most of the span. From 30th April to 2nd may 2018, there was an upward trend due to the increase in the demand of the shares by the public subscribers, which led to a rise in the unit stock pricing. There was also an increase in the daily stock volume for the stated period. It thus led to an increase in the accumulated capital from the sale of shares in that period leading to a definite upward trend.

On 3rd may 2018, there was a slight reduction in the net profit from the sale of stock. It is because of high expense of purchase of stock where the prospective shareholders were not willing to pay for the fleecing unit share pricing. They were subsequently sold at prices lower than unit cost, leading to losses. The period 7th to 18ht may 2018 saw a constant increase in the stock returns because of the forecasted favorable trading period with raised dividends, encouraging the investors to buy more stock securities.8. Dividends in the AmerisourceBergen Corporation

The AmerisourceBergen Corporation offers dividends to shareholders of 0.38% per common share quarterly. It is a crucial factor to consider choosing to invest in the Corporation since it determines the amount of returns to be received, in quarterly basis, of the invested capital.

9. Real life investment in the corporation

I would invest in the Real life investment in AmerisourceBergen Corporation because it offers a higher dividend in terms of capital rate of the amount invested. In this way, more benefits will accrue to shareholders hence worth i-

Other potential investors should invest in AmerisourceBergen Corporation due to the benefits such as high percentage of dividends reaped and the stability of the corporation in the market. It assures some greater degree of guarantee of perpetuity and safety of the investments made. The current shareholders should hold on to the stocks invested due to the promising stability of perpetuity and guarantee of returns, coupled with the highest percentage of returns offered by the corporation in the industry

Bibliography

Furgang, Kathy. 2011. How the stock market works. New York: Rosen Pub.

Labitan, Bud. 2010. Valuations: 30 intrinsic value estimations in the style of Warren Buffett and Charlie Munge...

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The Stock Performance of AmerisourceBergen Corporation Case Study Example. (2022, Jun 06). Retrieved from https://proessays.net/essays/the-stock-performance-of-amerisourcebergen-corporation-case-study-example

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