Zacks Investment Research Upgrades Rite Aid Corp. (RAD) to Hold
Rite Aid Corp. (NYSE:RAD) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Friday.
According to Zacks, “Rite Aid posted a mixed second-quarter fiscal 2017. While it managed to report earnings in line with our estimates top line missed mainly backed by lower Retail Pharmacy segment revenues. Additionally, the company’s earnings fell year over year mainly attributed to fall in adjusted EBITDA, offset by lower taxes and interest expense. Further, the company stated that challenges relating to the pharmacy reimbursement rate pressured results and the trend is expected to continue through the rest of the fiscal year. However, the company’s stringent focus on cost management and strengthening its portfolio of health and wellness services remains impressive. Its constant endeavors to enhance pharmacy and clinical services also bode well. Moreover, the company remains positioned to gain from its merger with Walgreens Boots Alliance, which is anticipated to close in second-half calendar 2016.”
Other research analysts have also issued research reports about the company. JPMorgan Chase & Co. reaffirmed a “hold” rating on shares of Rite Aid Corp. in a research report on Friday, June 17th. Evercore ISI lowered Rite Aid Corp. from a “buy” rating to a “hold” rating in a report on Wednesday, June 1st. Six analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. Rite Aid Corp. currently has a consensus rating of “Hold” and a consensus price target of $9.11.
Rite Aid Corp. (NYSE:RAD) opened at 8.12 on Friday. The company has a market capitalization of $8.46 billion, a PE ratio of 60.15 and a beta of 1.78. Rite Aid Corp. has a one year low of $5.88 and a one year high of $8.74. The firm’s 50 day moving average price is $7.67 and its 200-day moving average price is $7.71.
Rite Aid Corp. (NYSE:RAD) last posted its quarterly earnings results on Thursday, September 22nd. The company reported $0.03 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.03. The firm had revenue of $8 million for the quarter. Rite Aid Corp. had a return on equity of 36.73% and a net margin of 0.44%. The firm’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same period last year, the firm earned $0.02 EPS. Equities analysts forecast that Rite Aid Corp. will post $0.16 earnings per share for the current fiscal year.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Franklin Resources Inc. raised its position in shares of Rite Aid Corp. by 27,549.8% in the first quarter. Franklin Resources Inc. now owns 30,085,215 shares of the company’s stock worth $245,195,000 after buying an additional 29,976,407 shares in the last quarter. Norges Bank purchased a new position in shares of Rite Aid Corp. during the fourth quarter worth approximately $56,562,000. Capital World Investors raised its position in shares of Rite Aid Corp. by 56.7% in the second quarter. Capital World Investors now owns 16,577,000 shares of the company’s stock worth $124,162,000 after buying an additional 6,000,000 shares in the last quarter. Credit Capital Investments LLC raised its position in shares of Rite Aid Corp. by 898.6% in the second quarter. Credit Capital Investments LLC now owns 5,317,900 shares of the company’s stock worth $5,318,000 after buying an additional 4,785,378 shares in the last quarter. Finally, 1832 Asset Management L.P. raised its position in shares of Rite Aid Corp. by 105.1% in the first quarter. 1832 Asset Management L.P. now owns 7,610,000 shares of the company’s stock worth $103,865,000 after buying an additional 3,900,000 shares in the last quarter. 63.13% of the stock is currently owned by hedge funds and other institutional investors.
About Rite Aid Corp.
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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