According to Zacks, “Rite Aid has underperformed the industry in the past three months owing to its soft top and bottom line performances in recent quarters. The company’s loss per share in fourth-quarter fiscal 2019, with sales misses in the last two straight quarters reflects a soft trend. Though the loss was narrower-than-expected, a soft guidance for fiscal 2020 further raises concerns. Further, the company continues to witness lower front-end sales due to softness in the tobacco category. Nevertheless, it delivered the third straight quarter of same-store pharmacy sales and prescription growth, despite a mild flu season. Moreover, its focus on leveraging retail pharmacies, EnvisionRxOptions PBM, and health and wellness offerings remains encouraging. The company’s focus on enhancing omni-channel and clinical services in the pharmacy business, boosting customer experience, and investing in retail and pharmacy services businesses also bode well.”
Separately, Loop Capital decreased their target price on Rite Aid from $1.35 to $1.00 and set a hold rating on the stock in a research note on Thursday, December 20th. One analyst has rated the stock with a sell rating and five have given a hold rating to the company’s stock. The company has a consensus rating of Hold and an average price target of $1.92.
Shares of NYSE RAD opened at $0.45 on Friday. The company has a debt-to-equity ratio of 2.93, a current ratio of 1.68 and a quick ratio of 0.91. Rite Aid has a twelve month low of $0.44 and a twelve month high of $2.12.
Shares of Rite Aid are scheduled to reverse split on the morning of Monday, April 22nd. The 1-20 reverse split was announced on Wednesday, April 10th. The number of shares owned by shareholders will be adjusted after the closing bell on Friday, April 19th.
Rite Aid (NYSE:RAD) last announced its earnings results on Thursday, April 11th. The company reported ($0.01) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.03) by $0.02. The business had revenue of $5.38 billion for the quarter, compared to analyst estimates of $5.56 billion. Rite Aid had a negative return on equity of 1.21% and a negative net margin of 1.95%. During the same period in the prior year, the company earned ($0.01) EPS. Equities analysts predict that Rite Aid will post 0.01 earnings per share for the current year.
A number of hedge funds and other institutional investors have recently made changes to their positions in RAD. Nwam LLC bought a new position in shares of Rite Aid during the 4th quarter valued at about $27,000. Wedbush Securities Inc. increased its position in shares of Rite Aid by 111.9% during the 4th quarter. Wedbush Securities Inc. now owns 37,875 shares of the company’s stock valued at $27,000 after purchasing an additional 20,000 shares during the last quarter. Allred Capital Management LLC bought a new position in shares of Rite Aid during the 4th quarter valued at about $31,000. Capstone Financial Advisors Inc. bought a new position in shares of Rite Aid during the 3rd quarter valued at about $32,000. Finally, Lombard Odier Asset Management USA Corp bought a new position in shares of Rite Aid during the 3rd quarter valued at about $32,000. Institutional investors and hedge funds own 45.76% of the company’s stock.
About Rite Aid
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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