Rite Aid (NYSE:RAD) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday, January 9th.
According to Zacks, “Rite Aid has lagged the industry in the past year due to its dismal past performances, particularly top line. Though the company’s break-even bottom line results surpassed estimates in third-quarter fiscal 2018, sales lagged for the second straight quarter. Further, both earnings and sales dropped year over year. Earnings were hurt by decline in adjusted EBITDA, while sales dipped on account of soft comps as well as decline in revenues at Retail Pharmacy and Pharmacy Services segments. Comps fell due to lower pharmacy and front-end sales, while lower pharmacy reimbursement rates continued to hurt EBITDA margins. However, Rite Aid remains on track with the process of transferring stores and related assets to Walgreens in a phased manner, which is raising investors’ optimism. Moreover, the company’s efforts to boost market share through wellness remodels and other strategic initiatives bode well.”
A number of other equities research analysts have also recently issued reports on the stock. Deutsche Bank began coverage on shares of Rite Aid in a report on Monday, December 4th. They set a “hold” rating and a $2.25 price target for the company. Royal Bank of Canada set a $2.00 target price on shares of Rite Aid and gave the company a “hold” rating in a research note on Wednesday, October 25th. Loop Capital initiated coverage on shares of Rite Aid in a research note on Monday, September 11th. They issued a “hold” rating and a $2.50 target price for the company. Mizuho set a $2.00 price target on shares of Rite Aid and gave the stock a “hold” rating in a research report on Saturday, October 7th. Finally, Evercore ISI initiated 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 for the company. Three analysts have rated the stock with a sell rating, five have assigned a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of $2.75.
Shares of Rite Aid (NYSE:RAD) opened at $2.06 on Tuesday. The company has a quick ratio of 0.59, a current ratio of 0.86 and a debt-to-equity ratio of 3.66. Rite Aid has a fifty-two week low of $1.38 and a fifty-two week high of $6.15. The stock has a market cap of $2,200.00, a price-to-earnings ratio of 18.73 and a beta of 1.76.
Institutional investors have recently modified their holdings of the stock. State of New Jersey Common Pension Fund D increased its holdings in shares of Rite Aid by 1.7% in the third quarter. State of New Jersey Common Pension Fund D now owns 6,100,000 shares of the company’s stock valued at $11,956,000 after purchasing an additional 100,000 shares in the last quarter. Cowen Inc. boosted its stake in Rite Aid by 173.9% in the third quarter. Cowen Inc. now owns 858,400 shares of the company’s stock valued at $1,682,000 after acquiring an additional 545,000 shares during the last quarter. Schwab Charles Investment Management Inc. boosted its stake in Rite Aid by 34.2% in the third quarter. Schwab Charles Investment Management Inc. now owns 3,896,788 shares of the company’s stock valued at $7,638,000 after acquiring an additional 992,918 shares during the last quarter. ING Groep NV boosted its stake in Rite Aid by 176.6% in the third quarter. ING Groep NV now owns 478,600 shares of the company’s stock valued at $938,000 after acquiring an additional 305,600 shares during the last quarter. Finally, Stifel Financial Corp boosted its stake in Rite Aid by 71.5% in the second quarter. Stifel Financial Corp now owns 457,561 shares of the company’s stock valued at $1,343,000 after acquiring an additional 190,731 shares during the last quarter. 49.87% of the stock is owned by institutional investors and hedge funds.
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About Rite Aid
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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