Rite Aid Corporation (RAD) Downgraded to Sell at Zacks Investment Research
Rite Aid Corporation (NYSE:RAD) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday.
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.”
A number of other analysts have also weighed in on the stock. Loop Capital assumed coverage on shares of Rite Aid Corporation in a research report on Monday, September 11th. They issued a “hold” rating and a $2.50 target price on the stock. Guggenheim reiterated a “neutral” rating and set a $2.00 price target on shares of Rite Aid Corporation in a report on Monday. Mizuho downgraded shares of Rite Aid Corporation from a “buy” rating to a “neutral” rating and set a $2.95 price target for the company. in a report on Thursday, July 20th. Cowen and Company reiterated an “outperform” rating and issued a $4.70 price target on shares of Rite Aid Corporation in a research note on Monday, July 3rd. Finally, Royal Bank Of Canada began coverage on Rite Aid Corporation in a research note on Tuesday, September 19th. They issued a “sector perform” rating and a $2.50 price target for the company. Three investment analysts have rated the stock with a sell rating, five have given a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company. Rite Aid Corporation presently has an average rating of “Hold” and an average price target of $3.82.
Rite Aid Corporation (RAD) traded down 0.714% during midday trading on Wednesday, hitting $2.085. The stock had a trading volume of 12,345,001 shares. The company’s 50-day moving average price is $2.34 and its 200 day moving average price is $3.16. The company’s market capitalization is $2.18 billion. 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 announced its quarterly earnings results on Thursday, September 28th. The company reported ($0.01) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.01). The company had revenue of $7.68 billion for the quarter, compared to analyst estimates of $7.83 billion. Rite Aid Corporation had a net margin of 0.28% and a negative return on equity of 7.51%. The firm’s revenue was down 4.4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.03 EPS. On average, analysts expect that Rite Aid Corporation will post ($0.08) EPS for the current year.
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Several institutional investors have recently modified their holdings of the stock. World Asset Management Inc increased its holdings in Rite Aid Corporation by 27.1% in the first quarter. World Asset Management Inc now owns 46,781 shares of the company’s stock valued at $199,000 after purchasing an additional 9,989 shares during the period. UBS Asset Management Americas Inc. raised its position in Rite Aid Corporation by 11.2% during the 1st quarter. UBS Asset Management Americas Inc. now owns 2,679,205 shares of the company’s stock worth $11,387,000 after purchasing an additional 269,545 shares during the last quarter. Karp Capital Management Corp bought a new position in Rite Aid Corporation during the 1st quarter worth $497,000. TD Asset Management Inc. raised its position in Rite Aid Corporation by 4.4% during the 1st quarter. TD Asset Management Inc. now owns 63,943 shares of the company’s stock worth $272,000 after purchasing an additional 2,700 shares during the last quarter. Finally, Parametric Portfolio Associates LLC lifted its holdings in Rite Aid Corporation by 9.6% during the 1st quarter. Parametric Portfolio Associates LLC now owns 1,758,003 shares of the company’s stock worth $7,472,000 after buying an additional 154,317 shares during the period. 52.62% of the stock is currently owned by institutional investors.
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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