Zacks Investment Research upgraded shares of Rite Aid Corp. (NYSE:RAD) from a sell rating to a hold rating in a research note issued to investors on Wednesday.
According to Zacks, “Rite Aid’s stringent focus on cost management, alongside strengthening its portfolio of health and wellness services has been impressive. However, the company faced challenges related to pharmacy reimbursement rate that also pressured its top-line in the second quarter of fiscal 2017. Further, these hurdles are anticipated to linger throughout fiscal 2017, thus raising concerns over the company’s near-term performance. Moreover, risks related to increased industry consolidation and intense competition from other drug-store chains cannot be ignored. Nonetheless, Rite Aid’s constant endeavors to enhance pharmacy and clinical services bode well. Further, the company remains positioned to gain from its merger with Walgreens Boots Alliance, which is now expected to close by the end of January 2017, reflecting an extension from its previous deadline. Estimates have also been stable ahead of the company's third-quarter earnings.”
Separately, Vetr raised Rite Aid Corp. from a buy rating to a strong-buy rating in a research report on Friday, September 30th. Five analysts have rated the stock with a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the company. The stock currently has a consensus rating of Hold and an average price target of $9.01.
Rite Aid Corp. (NYSE:RAD) opened at 7.85 on Wednesday. The firm has a 50-day moving average of $7.10 and a 200-day moving average of $7.45. The company has a market capitalization of $8.20 billion, a P/E ratio of 60.85 and a beta of 1.89. Rite Aid Corp. has a one year low of $6.33 and a one year high of $8.30.
Rite Aid Corp. (NYSE:RAD) last issued its earnings results on Thursday, September 22nd. The company reported $0.03 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.03. Rite Aid Corp. had a return on equity of 32.41% and a net margin of 0.41%. The business earned $8 million during the quarter. During the same period last year, the business earned $0.02 earnings per share. The firm’s revenue was up 4.8% compared to the same quarter last year. On average, analysts anticipate that Rite Aid Corp. will post $0.12 earnings per share for the current year.
A number of institutional investors have recently made changes to their positions in the stock. Tdam USA Inc. boosted its position in shares of Rite Aid Corp. by 0.4% in the third quarter. Tdam USA Inc. now owns 45,254 shares of the company’s stock worth $348,000 after buying an additional 179 shares during the period. Capstone Asset Management Co. boosted its position in shares of Rite Aid Corp. by 1.4% in the second quarter. Capstone Asset Management Co. now owns 21,650 shares of the company’s stock worth $162,000 after buying an additional 290 shares during the period. Prudential Financial Inc. boosted its position in shares of Rite Aid Corp. by 0.4% in the first quarter. Prudential Financial Inc. now owns 75,894 shares of the company’s stock worth $618,000 after buying an additional 300 shares during the period. Hartford Investment Management Co. boosted its position in shares of Rite Aid Corp. by 1.6% in the second quarter. Hartford Investment Management Co. now owns 22,090 shares of the company’s stock worth $165,000 after buying an additional 347 shares during the period. Finally, Nomura Asset Management Co. Ltd. boosted its position in shares of Rite Aid Corp. by 0.3% in the third quarter. Nomura Asset Management Co. Ltd. now owns 135,800 shares of the company’s stock worth $1,044,000 after buying an additional 400 shares during the period. Institutional investors own 60.74% of the company’s stock.
Rite Aid Corp. 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.