Under the Microscope We Place Shares of Rite Aid Corporation (NYSE:RAD)

Rite Aid Corporation was covered by a number of analysts recently, 0 rated the stock as Buy, 3 rated Outperform, 3 rated Hold, 0 gave an Underperform and 0 rated sell. Important factors to focus when evaluating a stock’s present and future value are the 52 week price high and low levels.

It’s been almost two years since Walgreens first agreed to buy competitor Rite Aid and its 4,600 or so stores for $9.4 billion to form the nation’s largest drugstore chain, only to see the value of that deal shrink amid antitrust concerns.

After a prolonged negotiation with federal antitrust regulators, Walgreens and Rite Aid are ditching their planned merger, with Rite Aid instead planning to sell almost 2,200 pharmacies and related inventories to its competitor for $5.2 billion. This recommendation lands on a scale between 1 and 5. (NASDAQ:WBA). The majority of analysts covering the equity have either a Buy or Strong Buy recommendation on the stock, yielding a consensus score of 2.00.

After the announcement, CNBC reported that Rite Aid’s shares fell by 17%, while Walgreens’ shares were up by 4.4%. At present, the stock is -66.83% separated from the 52 week high and 0.31% from the low. The company has its outstanding shares of 1.05 billion. The shares price has directed -48.49% toward a lower level throughout a year ago and swapped 13.58% toward a strong spot during past one month. The company has a 50 day moving average price of $3.51 and a 200-day moving average price of $5.27. Walgreens also raised the lower end of its guidance for fiscal year 2017 by eight cents per share and now anticipates adjusted diluted net earnings per share of $4.98 to $5.08.

A Rite Aid store at 190 East Ave.in Norwalk, Conn. A beta of greater than 1 indicates that the security’s price will be more volatile than the market. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time.

“This new transaction extends our growth strategy and offers additional operational and financial benefits”, Walgreens CEO Stefano Pessina said in a release. Finally, Guggenheim downgraded shares of Rite Aid Corporation from a “buy” rating to a “neutral” rating in a report on Tuesday, April 25th. The Company operates under The Rite Aid name.

Revenue per share is 31.45. (NASDAQ:FRED), we notice that the stock is -9.78% off of the 20-Day Simple Moving Average.

EBITDA stands at 1.1 Billion.

Rite Aid will be leaving South Carolina, Utah and IN and will only have a pair of stores IN Mississippi, Georgia, Alabama, Maine, Rhode Island, West Virginia, Kentucky and Nevada. It operates approximately 4,560 stores in over 30 states across the country and in the District of Columbia.

Leave a Reply

Your email address will not be published. Required fields are marked *