Rite Aid (RAD) – Research Analysts’ Recent Ratings Updates

Several analysts have recently updated their ratings and price targets for Rite Aid (NYSE: RAD):

  • 4/13/2019 – Rite Aid was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. 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.”
  • 4/11/2019 – Rite Aid was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $0.50 price target on the stock. According to Zacks, “Although Rite Aid’s shares lagged the industry in the past three months, it is likely to pick momentum after the recent approval for a 1-for-20 reverse stock split. This will reduce the company’s outstanding shares to 54 million from the current 1.08 billion, helping the stock to regain momentum when it starts split-adjusted trading on April 22. The split will also help Rite Aid maintain compliance under the NYSE listing rules. Moreover, the company is leveraging retail pharmacies, EnvisionRxOptions PBM and health and wellness offerings, which remain encouraging. These efforts aided earnings and sales in third-quarter fiscal 2019. However, the company’s narrowed fiscal 2019 outlook is worrisome. Soft front-end comps due to weak tobacco and liquor categories remain headwinds. Further, inefficient realignment of stores within its network of distribution centers, after selling a distribution center to Walgreens, is hurting results.”
  • 4/3/2019 – Rite Aid was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Rite Aid is leveraging retail pharmacies, EnvisionRxOptions PBM and health and wellness offerings, which is aiding results. Earnings and sales improved year over year in third-quarter fiscal 2019, while earnings beat estimates for the third time in trailing five quarters. The company also delivered the strongest prescription count in more than two years and finest comps in above three years. Rite Aid expects to maintain this momentum by enhancing clinical services in pharmacy business, boosting customer experience and investing in retail and pharmacy services businesses. However, the company narrowed its outlook for fiscal 2019, which has led the stock to underperform the industry in the past three months. Soft front-end comps due to softness in tobacco and liquor categories remain headwinds. Moreover, inefficient realignment of stores within its network of distribution centers, after the sale of a distribution center to Walgreens, hurt results.”
  • 4/2/2019 – Rite Aid was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $0.75 price target on the stock. According to Zacks, “Rite Aid is leveraging retail pharmacies, EnvisionRxOptions PBM and health and wellness offerings, which is aiding results. Earnings and sales improved year over year in third-quarter fiscal 2019, while earnings beat estimates for the third time in trailing five quarters. The company also delivered the strongest prescription count in more than two years and finest comps in above three years. Rite Aid expects to maintain this momentum by enhancing clinical services in pharmacy business, boosting customer experience and investing in retail and pharmacy services businesses. However, the company narrowed its outlook for fiscal 2019, which has led the stock to underperform the industry in the past three months. Soft front-end comps due to softness in tobacco and liquor categories remain headwinds. Moreover, inefficient realignment of stores within its network of distribution centers, after the sale of a distribution center to Walgreens, hurt results.”
  • 3/20/2019 – Rite Aid was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $0.75 price target on the stock. According to Zacks, “Rite Aid surpassed the industry in the past three months. The company is leveraging retail pharmacies, EnvisionRxOptions PBM and health and wellness offerings, which is aiding results. Earnings and sales improved year over year in third-quarter fiscal 2019, while earnings beat estimates for the third time in trailing five quarters. The company also delivered the strongest prescription count in more than two years and finest comps in above three years. Rite Aid expects to maintain this momentum by enhancing clinical services in pharmacy business, boosting customer experience and investing in retail and pharmacy services businesses. However, the company narrowed its outlook for fiscal 2019. Soft front-end comps due to softness in tobacco and liquor categories remain headwinds. Moreover, inefficient realignment of stores within its network of distribution centers, after the sale of a distribution center to Walgreens, hurt results.”
  • 3/19/2019 – Rite Aid was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Rite Aid is leveraging retail pharmacies, EnvisionRxOptions PBM and health and wellness offerings, which is aiding results. Earnings and sales improved year over year in third-quarter fiscal 2019, while earnings beat estimates for the third time in trailing five quarters. The company also delivered the strongest prescription count in more than two years and finest comps in above three years. Rite Aid expects to maintain this momentum by enhancing clinical services in pharmacy business, boosting customer experience and investing in retail and pharmacy services businesses. However, the stock has underperformed the industry in the past six months. Further, the company  narrowed its outlook for fiscal 2019. Soft front-end comps due to softness in tobacco and liquor categories remain headwinds. Moreover, inefficient realignment of stores within its network of distribution centers, after the sale of a distribution center to Walgreens, hurt results.”

RAD stock traded down $0.06 during midday trading on Monday, reaching $0.44. The company’s stock had a trading volume of 32,762,045 shares, compared to its average volume of 15,915,616. The company has a current ratio of 1.68, a quick ratio of 0.90 and a debt-to-equity ratio of 2.93. Rite Aid Co. has a 1 year low of $0.44 and a 1 year high of $2.12.

Shares of Rite Aid are scheduled to reverse split on 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 released 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. Rite Aid had a negative return on equity of 1.21% and a negative net margin of 1.95%. The business had revenue of $5.38 billion for the quarter, compared to analyst estimates of $5.56 billion. During the same quarter last year, the firm posted ($0.01) earnings per share. Analysts forecast that Rite Aid Co. will post 0.03 EPS for the current year.

Institutional investors have recently made changes to their positions in the company. Nwam LLC bought a new stake in Rite Aid during the fourth quarter valued at about $27,000. Wedbush Securities Inc. boosted its holdings in Rite Aid by 111.9% in the fourth quarter. Wedbush Securities Inc. now owns 37,875 shares of the company’s stock worth $27,000 after acquiring an additional 20,000 shares in the last quarter. Allred Capital Management LLC acquired a new stake in Rite Aid in the fourth quarter worth about $31,000. Lombard Odier Asset Management USA Corp acquired a new stake in Rite Aid in the third quarter worth about $32,000. Finally, Capstone Financial Advisors Inc. acquired a new stake in Rite Aid in the third quarter worth about $32,000. Hedge funds and other institutional investors own 45.76% of the company’s stock.

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.

Featured Article: What are defining characteristics of a correction?

Receive News & Ratings for Rite Aid Co Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rite Aid Co and related companies with MarketBeat.com's FREE daily email newsletter.