Zacks Investment Research Downgrades Rite Aid Corporation (RAD) to Sell
Zacks Investment Research downgraded shares of Rite Aid Corporation (NYSE:RAD) from a hold rating to a sell rating in a research note issued to investors on Wednesday morning.
According to Zacks, “Rite Aid, which has lagged the broader industry year to date, has had quite an eventful ride of late. The company suffered a huge setback in June, when its merger with Walgreens was terminated. Thereafter, both the entities entered into a new deal, per which Walgreens will buy certain Rite Aid stores and related assets. However, this contract was also amended recently and finally won the FTC’s clearance. Rite Aid posted dismal second quarter-fiscal 2017 results nearly a week after receiving FTC’s nod. The company reported a loss that compared unfavorably with the year-ago earnings figure. Also, sales remained soft, and lower pharmacy reimbursement rates continued to hurt EBITDA margins. Nonetheless, management intends to use funds from the aforementioned deal to reduce debt and improve financial leverage. Further, the pact should make Rite Aid a smaller, yet stronger independent firm with solid control in key markets.”
Other research analysts have also recently issued research reports about the stock. Loop Capital initiated coverage on shares of Rite Aid Corporation in a report on Monday, September 11th. They set a hold rating and a $2.50 target price for the company. Guggenheim restated a neutral rating and set a $2.00 target price on shares of Rite Aid Corporation in a report on Monday, October 2nd. Mizuho cut shares of Rite Aid Corporation from a buy rating to a neutral rating and set a $2.95 target price for the company. in a report on Thursday, July 20th. Cowen and Company restated an outperform rating and set a $4.70 target price on shares of Rite Aid Corporation in a report on Monday, July 3rd. Finally, Royal Bank Of Canada initiated coverage on shares of Rite Aid Corporation in a report on Tuesday, September 19th. They set a sector perform rating and a $2.50 target price for the company. Three analysts have rated the stock with a sell rating, five have issued a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the stock. Rite Aid Corporation presently has a consensus rating of Hold and an average target price of $3.73.
Shares of Rite Aid Corporation (NYSE:RAD) opened at 1.96 on Wednesday. The firm has a 50-day moving average of $2.32 and a 200-day moving average of $3.13. The stock has a market cap of $2.06 billion, a P/E ratio of 23.33 and a beta of 1.79. Rite Aid Corporation has a 52-week low of $1.90 and a 52-week high of $8.77.
Rite Aid Corporation (NYSE:RAD) last released its quarterly earnings results on Thursday, September 28th. The company reported ($0.01) earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of ($0.01). The company had revenue of $7.68 billion during the quarter, compared to analysts’ expectations of $7.83 billion. Rite Aid Corporation had a net margin of 0.28% and a negative return on equity of 7.51%. The business’s quarterly revenue was down 4.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.03 earnings per share. On average, equities analysts expect that Rite Aid Corporation will post ($0.08) EPS for the current fiscal year.
In other Rite Aid Corporation news, Director Myrtle S. Potter sold 28,189 shares of the company’s stock in a transaction on Tuesday, October 3rd. The shares were sold at an average price of $2.09, for a total transaction of $58,915.01. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 2.29% of the company’s stock.
A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Fort Pitt Capital Group LLC raised its position in Rite Aid Corporation by 37.8% during the second quarter. Fort Pitt Capital Group LLC now owns 49,210 shares of the company’s stock worth $145,000 after acquiring an additional 13,500 shares in the last quarter. Verition Fund Management LLC bought a new stake in Rite Aid Corporation during the second quarter worth $120,000. PointState Capital LP bought a new stake in Rite Aid Corporation during the second quarter worth $221,000. Institute for Wealth Management LLC. bought a new stake in Rite Aid Corporation during the second quarter worth $199,000. Finally, GMT Capital Corp bought a new stake in Rite Aid Corporation during the second quarter worth $3,600,000. 52.62% of the stock is currently owned by hedge funds and other institutional investors.
Rite Aid Corporation Company Profile
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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