Rite Aid (RAD) Upgraded to Hold by Zacks Investment Research

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

According to Zacks, “Rite Aid outperformed the industry in the last three months as it remains on track with the transferring of stores and related assets to Walgreens in a phased manner. So far, the company has transferred 625 stores and related assets to Walgreens, generating net cash proceeds of $1,309.8 million. This will be used to pay down debt and strengthen liquidity position. Moreover, the company’s efforts to boost market share through wellness remodels and other strategic initiatives bode well. Though the company’s break-even bottom line results surpassed estimates in third-quarter fiscal 2018, its dismal top-line trends due to unfavorable reimbursement rates and soft same store sales remains an impediment. Notably, Rite Aid has delivered negative sales surprise in four of the trailing six quarters due to soft comps as well as decline in revenues at key business segments. Estimates have been stable lately.”

RAD has been the topic of a number of other reports. Vetr downgraded shares of Rite Aid from a “strong-buy” rating to a “buy” rating and set a $2.47 price target on the stock. in a research report on Thursday, January 11th. Royal Bank of Canada set a $2.00 price target on shares of Rite Aid and gave the company a “hold” rating in a research report on Wednesday, October 25th. Evercore ISI assumed coverage on shares of Rite Aid in a research report on Thursday, January 4th. They issued an “underperform” rating and a $1.50 price target on the stock. Finally, Deutsche Bank assumed coverage on shares of Rite Aid in a research report on Monday, December 4th. They issued a “hold” rating and a $2.25 price target on the stock. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. The company currently has a consensus rating of “Hold” and an average target price of $2.75.

Shares of Rite Aid (NYSE RAD) remained flat at $$2.06 during trading hours on Monday. 8,345,527 shares of the company traded hands, compared to its average volume of 26,647,654. The firm has a market capitalization of $2,200.00, a price-to-earnings ratio of 18.68 and a beta of 1.76. The company has a debt-to-equity ratio of 3.66, a quick ratio of 0.59 and a current ratio of 0.86. Rite Aid has a 52-week low of $1.38 and a 52-week high of $6.15.

Hedge funds have recently made changes to their positions in the business. Aperio Group LLC raised its holdings in shares of Rite Aid by 124.5% in the fourth quarter. Aperio Group LLC now owns 430,916 shares of the company’s stock valued at $849,000 after purchasing an additional 238,942 shares during the last quarter. Parametrica Management Ltd acquired a new stake in shares of Rite Aid in the fourth quarter valued at approximately $182,000. SG Americas Securities LLC raised its holdings in shares of Rite Aid by 173.1% in the fourth quarter. SG Americas Securities LLC now owns 758,070 shares of the company’s stock valued at $1,493,000 after purchasing an additional 1,794,516 shares during the last quarter. State of Alaska Department of Revenue acquired a new stake in shares of Rite Aid in the fourth quarter valued at approximately $195,000. Finally, Schwab Charles Investment Management Inc. grew its stake in shares of Rite Aid by 1.0% in the fourth quarter. Schwab Charles Investment Management Inc. now owns 3,936,136 shares of the company’s stock valued at $7,755,000 after buying an additional 39,348 shares in the last quarter. Hedge funds and other institutional investors own 49.55% of the company’s stock.

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Rite Aid 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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