Rite Aid Corporation (RAD) Stock Rating Upgraded by Zacks Investment Research
Rite Aid Corporation (NYSE:RAD) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Friday.
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 research firms also recently weighed in on RAD. Royal Bank Of Canada initiated coverage on shares of Rite Aid Corporation in a research note on Tuesday, September 19th. They set a “sector perform” rating and a $2.50 price target on the stock. Mizuho downgraded 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 note on Thursday, July 20th. Loop Capital started coverage on shares of Rite Aid Corporation in a research note on Monday, September 11th. They issued a “hold” rating and a $2.50 target price on the stock. Finally, Guggenheim restated a “neutral” rating and issued a $2.00 target price on shares of Rite Aid Corporation in a research note on Monday, October 2nd. Two research analysts have rated the stock with a sell rating, six have given a hold rating, two have given a buy rating and one has issued a strong buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average target price of $3.68.
Rite Aid Corporation (NYSE:RAD) last posted its quarterly earnings results on Thursday, September 28th. The company reported ($0.01) earnings per share for the quarter, hitting the Zacks’ consensus estimate of ($0.01). Rite Aid Corporation had a net margin of 0.28% and a negative return on equity of 7.51%. The firm had revenue of $7.68 billion for the quarter, compared to the consensus estimate of $7.83 billion. During the same quarter in the previous year, the company earned $0.03 earnings per share. The business’s revenue was down 4.4% compared to the same quarter last year. sell-side analysts anticipate that Rite Aid Corporation will post -0.1 EPS for the current fiscal year.
In related news, Director Myrtle S. Potter sold 28,189 shares of Rite Aid Corporation stock in a transaction dated Tuesday, October 3rd. The stock was sold at an average price of $2.09, for a total value of $58,915.01. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 2.29% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in the stock. Advisor Group Inc. raised its holdings in Rite Aid Corporation by 49.8% during the 2nd quarter. Advisor Group Inc. now owns 36,518 shares of the company’s stock worth $101,000 after purchasing an additional 12,140 shares during the last quarter. Smithfield Trust Co. raised its holdings in Rite Aid Corporation by 37.8% during the 2nd quarter. Smithfield Trust Co. now owns 37,650 shares of the company’s stock worth $111,000 after purchasing an additional 10,330 shares during the last quarter. Comerica Bank raised its holdings in Rite Aid Corporation by 9.2% during the 2nd quarter. Comerica Bank now owns 44,460 shares of the company’s stock worth $111,000 after purchasing an additional 3,753 shares during the last quarter. Pinnacle Associates Ltd. raised its holdings in Rite Aid Corporation by 8.1% during the 2nd quarter. Pinnacle Associates Ltd. now owns 38,900 shares of the company’s stock worth $115,000 after purchasing an additional 2,900 shares during the last quarter. Finally, Investors Asset Management of Georgia Inc. GA ADV raised its holdings in Rite Aid Corporation by 31.1% during the 2nd quarter. Investors Asset Management of Georgia Inc. GA ADV now owns 40,000 shares of the company’s stock worth $118,000 after purchasing an additional 9,500 shares during the last quarter. 53.01% of the stock is owned by institutional investors and hedge funds.
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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