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.”
Several other brokerages also recently issued reports on RAD. JPMorgan Chase & Co. reaffirmed a hold rating on shares of Rite Aid Corp. in a report on Friday, June 17th. Evercore ISI downgraded shares of Rite Aid Corp. from a buy rating to a hold rating in a report on Wednesday, June 1st. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, two have issued a buy rating and one has given a strong buy rating to the company. The company has a consensus rating of Hold and an average price target of $9.11.
Rite Aid Corp. (NYSE:RAD) opened at 7.59 on Thursday. Rite Aid Corp. has a 12 month low of $5.98 and a 12 month high of $8.74. The stock has a market cap of $7.93 billion, a PE ratio of 58.84 and a beta of 1.77. The firm has a 50-day moving average of $7.80 and a 200 day moving average of $7.70.
Rite Aid Corp. (NYSE:RAD) last announced its quarterly earnings results on Thursday, September 22nd. The company reported $0.03 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.03. Rite Aid Corp. had a net margin of 0.41% and a return on equity of 32.41%. The company had revenue of $8 million for the quarter. During the same period last year, the company earned $0.02 EPS. The firm’s revenue for the quarter was up 4.8% on a year-over-year basis. Analysts anticipate that Rite Aid Corp. will post $0.14 EPS for the current year.
Institutional investors have recently modified their holdings of the company. Geode Capital Management LLC raised its position in shares of Rite Aid Corp. by 4.5% in the first quarter. Geode Capital Management LLC now owns 6,558,933 shares of the company’s stock valued at $53,423,000 after buying an additional 285,370 shares during the period. State Street Corp raised its position in shares of Rite Aid Corp. by 3.4% in the first quarter. State Street Corp now owns 18,204,115 shares of the company’s stock valued at $148,362,000 after buying an additional 603,510 shares during the period. Quantum Capital Management raised its position in shares of Rite Aid Corp. by 27.4% in the first quarter. Quantum Capital Management now owns 2,258,875 shares of the company’s stock valued at $18,409,000 after buying an additional 485,529 shares during the period. Adage Capital Partners GP L.L.C. raised its position in shares of Rite Aid Corp. by 25.0% in the first quarter. Adage Capital Partners GP L.L.C. now owns 1,000,000 shares of the company’s stock valued at $8,150,000 after buying an additional 200,000 shares during the period. Finally, Welch Capital Partners LLC NY bought a new position in shares of Rite Aid Corp. during the second quarter valued at approximately $5,555,000. 63.13% of the stock is 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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