Rite Aid (NYSE:RAD) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Wednesday. The firm presently has a $0.75 price objective on the stock. Zacks Investment Research‘s price objective suggests a potential upside of 7.22% from the company’s previous close.
According to Zacks, “Rite Aid surpassed the industry in the past three months. The company is leveraging retail pharmacies, EnvisionRxOptions PBM and health and wellness offerings, which is aiding results. Earnings and sales improved year over year in third-quarter fiscal 2019, while earnings beat estimates for the third time in trailing five quarters. The company also delivered the strongest prescription count in more than two years and finest comps in above three years. Rite Aid expects to maintain this momentum by enhancing clinical services in pharmacy business, boosting customer experience and investing in retail and pharmacy services businesses. However, the company narrowed its outlook for fiscal 2019. Soft front-end comps due to softness in tobacco and liquor categories remain headwinds. Moreover, inefficient realignment of stores within its network of distribution centers, after the sale of a distribution center to Walgreens, hurt results.”
Separately, Loop Capital decreased their price objective on Rite Aid from $1.35 to $1.00 and set a “hold” rating on the stock in a report on Thursday, December 20th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating to the stock. The stock has a consensus rating of “Hold” and an average price target of $1.96.
RAD remained flat at $$0.70 during midday trading on Wednesday. The company’s stock had a trading volume of 3,412,825 shares, compared to its average volume of 15,021,107. The firm has a market cap of $746.11 million, a price-to-earnings ratio of -34.98 and a beta of 1.85. The company has a debt-to-equity ratio of 2.35, a current ratio of 1.59 and a quick ratio of 0.90. Rite Aid has a 12-month low of $0.60 and a 12-month high of $2.12.
Rite Aid (NYSE:RAD) last announced its quarterly earnings data on Wednesday, December 19th. The company reported $0.01 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.01) by $0.02. Rite Aid had a negative return on equity of 0.94% and a net margin of 2.85%. The company had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.45 billion. The company’s revenue was up 1.8% compared to the same quarter last year. As a group, equities research analysts expect that Rite Aid will post -0.02 EPS for the current year.
Several large investors have recently made changes to their positions in the company. Norges Bank bought a new position in shares of Rite Aid during the 4th quarter worth approximately $6,491,000. Vanguard Group Inc. lifted its position in shares of Rite Aid by 2.2% during the 3rd quarter. Vanguard Group Inc. now owns 94,321,789 shares of the company’s stock worth $120,732,000 after buying an additional 2,006,919 shares during the period. Vanguard Group Inc lifted its position in shares of Rite Aid by 2.2% during the 3rd quarter. Vanguard Group Inc now owns 94,321,789 shares of the company’s stock worth $120,732,000 after buying an additional 2,006,919 shares during the period. Kepos Capital LP bought a new position in shares of Rite Aid during the 3rd quarter worth approximately $2,560,000. Finally, BlackRock Inc. lifted its position in shares of Rite Aid by 1.9% during the 4th quarter. BlackRock Inc. now owns 75,443,713 shares of the company’s stock worth $53,438,000 after buying an additional 1,432,479 shares during the period. 44.92% of the stock is currently owned by institutional investors.
Rite Aid Company Profile
Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. It operates through two segments, Retail Pharmacy and Pharmacy Services. The Retail Pharmacy segment sells prescription drugs and a range of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and other every day and convenience products.
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