Rite Aid Corporation (RAD) Upgraded by Zacks Investment Research to “Hold”
Rite Aid Corporation (NYSE:RAD) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “Rite Aid is yet to recover from the setback suffered due to the termination of its merger deal with Walgreens. This along with the company’s negative surprise trend in recent quarters has led the stock to underperform the industry in the last three months. Also, Rite Aid continues to battle lower pharmacy reimbursement rates that hurt margins in first-quarter fiscal 2018. Moreover, sales remained soft in the quarter. However, Rite Aid's all cash deal with Walgreens to sell certain Rite Aid stores and related assets to the latter, looks good. This will help in lowering Rite Aid’s debt and improving financial flexibility, making it a smaller, yet stronger independent firm with solid control in key markets. Further, the company's stringent focus on cost management and strengthening its portfolio of health and wellness services also remain impressive. Estimates have been stable ahead of the company's second quarter earnings release.”
Other analysts also recently issued reports about the stock. Mizuho downgraded shares of Rite Aid Corporation from a “buy” rating to a “neutral” rating and set a $2.95 price objective on the stock. in a research report on Thursday, July 20th. Guggenheim restated a “neutral” rating on shares of Rite Aid Corporation in a research report on Monday, July 3rd. Cowen and Company restated an “outperform” rating and set a $4.70 price objective on shares of Rite Aid Corporation in a research report on Monday, June 12th. Bank of America Corporation restated an “underperform” rating and set a $2.00 price objective on shares of Rite Aid Corporation in a research report on Friday, June 30th. Finally, Evercore ISI initiated coverage on shares of Rite Aid Corporation in a research report on Friday, June 30th. They set an “underperform” rating and a $2.50 price objective on the stock. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average target price of $4.53.
Shares of Rite Aid Corporation (NYSE RAD) traded up 0.44% during midday trading on Tuesday, reaching $2.27. The company had a trading volume of 6,563,911 shares. The firm’s market capitalization is $2.38 billion. The company has a 50 day moving average price of $2.34 and a 200-day moving average price of $3.77. Rite Aid Corporation has a one year low of $2.21 and a one year high of $8.77.
Rite Aid Corporation (NYSE:RAD) last released its quarterly earnings results on Thursday, June 29th. The company reported ($0.05) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.01) by $0.04. The business had revenue of $7.78 billion during the quarter, compared to the consensus estimate of $8.29 billion. Rite Aid Corporation had a positive return on equity of 0.52% and a negative net margin of 0.21%. The firm’s revenue was down 4.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.02 earnings per share. On average, analysts anticipate that Rite Aid Corporation will post ($0.09) EPS for the current fiscal year.
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Several institutional investors have recently modified their holdings of the company. Macquarie Group Ltd. boosted its position in shares of Rite Aid Corporation by 125.3% in the fourth quarter. Macquarie Group Ltd. now owns 22,300 shares of the company’s stock worth $184,000 after buying an additional 12,400 shares during the last quarter. Capstone Asset Management Co. boosted its position in Rite Aid Corporation by 7.9% in the first quarter. Capstone Asset Management Co. now owns 25,870 shares of the company’s stock worth $110,000 after buying an additional 1,890 shares in the last quarter. DnB Asset Management AS boosted its position in Rite Aid Corporation by 27.3% in the first quarter. DnB Asset Management AS now owns 94,191 shares of the company’s stock worth $400,000 after buying an additional 20,200 shares in the last quarter. Candriam Luxembourg S.C.A. boosted its position in Rite Aid Corporation by 27.2% in the first quarter. Candriam Luxembourg S.C.A. now owns 78,184 shares of the company’s stock worth $332,000 after buying an additional 16,711 shares in the last quarter. Finally, Janney Montgomery Scott LLC boosted its position in Rite Aid Corporation by 65.9% in the first quarter. Janney Montgomery Scott LLC now owns 69,211 shares of the company’s stock worth $294,000 after buying an additional 27,500 shares in the last quarter. 52.63% of the stock is owned by institutional investors and hedge funds.
About Rite Aid Corporation
Rite Aid Corporation is a retail drugstore chain. The Company’s segments include Retail Pharmacy and Pharmacy Services. The Company operates under The Rite Aid name. It operates approximately 4,560 stores in over 30 states across the country and in the District of Columbia. The Company’s Retail Pharmacy segment consists of Rite Aid stores, RediClinic and Health Dialog.
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