Zacks Investment Research downgraded shares of Rite Aid (NYSE:RAD) from a buy rating to a hold rating in a report issued on Saturday morning, Zacks.com reports.

According to Zacks, “Rite Aid has underperformed the industry in the past three months owing to its soft top and bottom line performances in recent quarters. The company’s loss per share in fourth-quarter fiscal 2019, with sales misses in the last two straight quarters reflects a soft trend. Though the loss was narrower-than-expected, a soft guidance for fiscal 2020 further raises concerns. Further, the company continues to witness lower front-end sales due to softness in the tobacco category. Nevertheless, it delivered the third straight quarter of same-store pharmacy sales and prescription growth, despite a mild flu season. Moreover, its focus on leveraging retail pharmacies, EnvisionRxOptions PBM, and health and wellness offerings remains encouraging. The company’s focus on enhancing omni-channel and clinical services in the pharmacy business, boosting customer experience, and investing in retail and pharmacy services businesses also bode well.”

Separately, Loop Capital decreased their price target on shares of Rite Aid from $1.35 to $1.00 and set a hold rating on the stock in a research note on Thursday, December 20th. One analyst has rated the stock with a sell rating and five have assigned a hold rating to the stock. Rite Aid currently has an average rating of Hold and a consensus target price of $1.92.

RAD stock opened at $0.44 on Friday. Rite Aid has a one year low of $0.44 and a one year high of $2.12. The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.90 and a current ratio of 1.68.

Rite Aid shares are scheduled to reverse split before the market opens on Monday, April 22nd. The 1-20 reverse split was announced on Wednesday, April 10th. The number of shares owned by shareholders will be adjusted after the closing bell on Friday, April 19th.

Rite Aid (NYSE:RAD) last posted its quarterly earnings results on Thursday, April 11th. The company reported ($0.01) EPS for the quarter, topping the consensus estimate of ($0.03) by $0.02. The firm had revenue of $5.38 billion for the quarter, compared to the consensus estimate of $5.56 billion. Rite Aid had a negative net margin of 1.95% and a negative return on equity of 1.21%. During the same period last year, the firm posted ($0.01) earnings per share. Research analysts forecast that Rite Aid will post 0.03 earnings per share for the current fiscal year.

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Paloma Partners Management Co increased its stake in shares of Rite Aid by 21.5% in the fourth quarter. Paloma Partners Management Co now owns 82,600 shares of the company’s stock worth $59,000 after buying an additional 14,600 shares during the period. Wedbush Securities Inc. increased its stake in shares of Rite Aid by 111.9% in the fourth quarter. Wedbush Securities Inc. now owns 37,875 shares of the company’s stock worth $27,000 after buying an additional 20,000 shares during the period. Lombard Odier Asset Management USA Corp purchased a new position in shares of Rite Aid in the third quarter worth $32,000. Capstone Financial Advisors Inc. purchased a new position in shares of Rite Aid in the third quarter worth $32,000. Finally, Raymond James & Associates increased its stake in shares of Rite Aid by 12.9% in the fourth quarter. Raymond James & Associates now owns 233,670 shares of the company’s stock worth $166,000 after buying an additional 26,710 shares during the period. 45.76% of the stock is currently owned by institutional investors.

About Rite Aid

Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. It operates through two segments, Retail Pharmacy and Pharmacy Services. The Retail Pharmacy segment sells prescription drugs and a range of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and other every day and convenience products.

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