Zacks Investment Research upgraded shares of Rite Aid (NYSE:RAD) from a sell rating to a hold rating in a research note published on Tuesday, September 18th.
According to Zacks, “Rite Aid is well positioned to execute its strategic plan as a standalone company after the termination of the merger deal with Albertsons. Further, its focus on leveraging retail pharmacies, EnvisionRxOptions PBM and wellness offerings remain encouraging. Additionally, the shift of e-commerce fulfillment to its own distribution network is boosting customer experience. This has reduced delivery lead time, lowered cost and helped increase online offering by 25%. However, it lagged the industry in the last three months due to negative earnings surprise in first-quarter fiscal 2019. Further, the company’s recently slashed outlook, in response to the unfavorable trends in the generic drug market, has hit investor sentiments. Notably, generic drug purchasing efficiencies are estimated to be $80 million lower than the initial guidance. Higher interest, transaction costs, lease termination and impairment charges are also hurting the company.”
Several other analysts have also recently issued reports on RAD. Cowen reissued a buy rating and issued a $2.35 target price on shares of Rite Aid in a research note on Thursday, June 28th. Mizuho reissued a hold rating and issued a $2.00 target price on shares of Rite Aid in a research note on Thursday, August 9th. TheStreet cut Rite Aid from a c- rating to a d rating in a research note on Wednesday, August 8th. Finally, Goldman Sachs Group started coverage on Rite Aid in a research note on Thursday, September 6th. They issued a sell rating and a $1.00 target price on the stock. Two research analysts have rated the stock with a sell rating, six have given a hold rating and one has given a strong buy rating to the company. The stock has an average rating of Hold and a consensus target price of $2.16.
Rite Aid (NYSE:RAD) last posted its earnings results on Thursday, September 27th. The company reported ($0.01) earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of ($0.01). The company had revenue of $5.42 billion for the quarter, compared to analysts’ expectations of $5.36 billion. Rite Aid had a negative return on equity of 1.97% and a net margin of 3.26%. Rite Aid’s quarterly revenue was up 1.4% on a year-over-year basis. During the same period last year, the firm earned ($0.01) earnings per share. As a group, research analysts predict that Rite Aid will post -0.02 EPS for the current year.
A number of institutional investors and hedge funds have recently modified their holdings of the business. NEXT Financial Group Inc lifted its holdings in Rite Aid by 62.5% in the first quarter. NEXT Financial Group Inc now owns 73,850 shares of the company’s stock worth $124,000 after buying an additional 28,400 shares during the period. Rhumbline Advisers lifted its holdings in Rite Aid by 2.8% in the second quarter. Rhumbline Advisers now owns 1,096,828 shares of the company’s stock worth $1,898,000 after buying an additional 30,154 shares during the period. Gamco Investors INC. ET AL lifted its holdings in Rite Aid by 4.2% in the first quarter. Gamco Investors INC. ET AL now owns 842,639 shares of the company’s stock worth $1,416,000 after buying an additional 33,866 shares during the period. Xact Kapitalforvaltning AB lifted its holdings in Rite Aid by 24.2% in the second quarter. Xact Kapitalforvaltning AB now owns 180,143 shares of the company’s stock worth $312,000 after buying an additional 35,100 shares during the period. Finally, OMERS ADMINISTRATION Corp lifted its holdings in Rite Aid by 25.0% in the first quarter. OMERS ADMINISTRATION Corp now owns 212,600 shares of the company’s stock worth $357,000 after buying an additional 42,500 shares during the period. Institutional investors and hedge funds own 55.58% of the company’s stock.
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.
Further Reading: How to Invest in Growth Stocks
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Rite Aid Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rite Aid and related companies with MarketBeat.com's FREE daily email newsletter.