Rite Aid Corporation (NYSE:RAD) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a research report issued 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.”

A number of other research analysts have also recently weighed in on the stock. Mizuho cut shares of Rite Aid Corporation from a “buy” rating to a “neutral” rating and set a $2.95 target price on the stock. in a research report on Thursday, July 20th. Guggenheim reissued a “neutral” rating on shares of Rite Aid Corporation in a research report on Monday, July 3rd. Cowen and Company reissued an “outperform” rating and set a $4.70 target price on shares of Rite Aid Corporation in a research report on Monday, July 3rd. Bank of America Corporation reissued an “underperform” rating and set a $2.00 target price on shares of Rite Aid Corporation in a research report on Friday, June 30th. Finally, Evercore ISI assumed coverage on shares of Rite Aid Corporation in a research report on Friday, June 30th. They set an “underperform” rating and a $2.50 target price on the stock. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating, two have issued a buy rating and one has given a strong buy rating to the stock. Rite Aid Corporation presently has an average rating of “Hold” and a consensus price target of $4.53.

Rite Aid Corporation (NYSE RAD) traded up 3.54% during mid-day trading on Tuesday, reaching $2.34. 15,712,542 shares of the company’s stock traded hands. The stock’s market capitalization is $2.45 billion. The firm’s 50-day moving average price is $2.34 and its 200 day moving average price is $3.77. Rite Aid Corporation has a 12 month low of $2.21 and a 12 month high of $8.77.

Rite Aid Corporation (NYSE:RAD) last released its earnings results on Thursday, June 29th. The company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.01) by $0.04. Rite Aid Corporation had a negative net margin of 0.21% and a positive return on equity of 0.52%. The company had revenue of $7.78 billion during the quarter, compared to analysts’ expectations of $8.29 billion. During the same quarter in the previous year, the firm posted $0.02 earnings per share. Rite Aid Corporation’s revenue for the quarter was down 4.9% compared to the same quarter last year. Equities research analysts predict that Rite Aid Corporation will post ($0.09) EPS for the current year.

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A number of hedge funds have recently added to or reduced their stakes in RAD. NEXT Financial Group Inc raised its position in Rite Aid Corporation by 2.4% in the first quarter. NEXT Financial Group Inc now owns 37,800 shares of the company’s stock valued at $151,000 after buying an additional 900 shares in the last quarter. Cambridge Investment Research Advisors Inc. raised its position in Rite Aid Corporation by 0.7% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 141,287 shares of the company’s stock valued at $600,000 after buying an additional 968 shares in the last quarter. Geneva Advisors LLC raised its position in Rite Aid Corporation by 3.1% in the first quarter. Geneva Advisors LLC now owns 40,384 shares of the company’s stock valued at $172,000 after buying an additional 1,211 shares in the last quarter. Levin Capital Strategies L.P. raised its position in Rite Aid Corporation by 0.5% in the first quarter. Levin Capital Strategies L.P. now owns 253,445 shares of the company’s stock valued at $1,077,000 after buying an additional 1,239 shares in the last quarter. Finally, Capstone Asset Management Co. raised 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 valued at $110,000 after buying an additional 1,890 shares in the last quarter. Hedge funds and other institutional investors own 52.63% of the company’s stock.

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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Analyst Recommendations for Rite Aid Corporation (NYSE:RAD)

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