Rite Aid Corporation (RAD) Debt Trading 4.8% Lower

An issue of Rite Aid Corporation (NYSE:RAD) bonds fell 4.8% against their face value during trading on Wednesday. The debt issue has a 7.7% coupon and is set to mature on February 15, 2027. The bonds in the issue are now trading at $81.50 and were trading at $88.75 last week. Price changes in a company’s bonds in credit markets often anticipate parallel changes in its stock price.

Several research firms recently commented on RAD. Guggenheim reaffirmed a “neutral” rating on shares of Rite Aid Corporation in a research report on Monday, July 3rd. Cowen and Company reissued an “outperform” rating and issued a $4.70 target price on shares of Rite Aid Corporation in a research report on Monday, July 3rd. Zacks Investment Research cut Rite Aid Corporation from a “hold” rating to a “sell” rating in a research report on Wednesday, October 4th. Evercore ISI initiated coverage on Rite Aid Corporation in a research report on Friday, June 30th. They issued an “underperform” rating and a $2.50 target price on the stock. Finally, Loop Capital reissued a “hold” rating and issued a $2.00 target price (down from $2.50) on shares of Rite Aid Corporation in a research report on Friday, September 29th. Three research analysts have rated the stock with a sell rating, five have assigned a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average target price of $3.73.

Rite Aid Corporation (NYSE RAD) opened at 1.65 on Friday. The company has a market cap of $1.73 billion, a P/E ratio of 19.64 and a beta of 1.79. Rite Aid Corporation has a 1-year low of $1.63 and a 1-year high of $8.77. The stock has a 50 day moving average price of $2.27 and a 200 day moving average price of $3.05.

Rite Aid Corporation (NYSE:RAD) last issued its earnings results on Thursday, September 28th. The company reported ($0.01) EPS for the quarter, hitting analysts’ consensus estimates of ($0.01). Rite Aid Corporation had a negative return on equity of 7.51% and a net margin of 0.28%. The firm had revenue of $7.68 billion for the quarter, compared to the consensus estimate of $7.83 billion. During the same quarter in the prior year, the business earned $0.03 earnings per share. The company’s revenue was down 4.4% compared to the same quarter last year. On average, equities research analysts anticipate that Rite Aid Corporation will post $0.92 EPS for the current fiscal year.

In related news, Director Myrtle S. Potter sold 28,189 shares of the company’s stock in a transaction dated Tuesday, October 3rd. The stock was sold at an average price of $2.09, for a total value of $58,915.01. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 2.29% of the company’s stock.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RAD. UBS Asset Management Americas Inc. raised its holdings in Rite Aid Corporation by 11.2% in the 1st quarter. UBS Asset Management Americas Inc. now owns 2,679,205 shares of the company’s stock worth $11,387,000 after purchasing an additional 269,545 shares during the period. Karp Capital Management Corp acquired a new position in Rite Aid Corporation in the 1st quarter worth about $497,000. TD Asset Management Inc. raised its holdings in Rite Aid Corporation by 4.4% in the 1st quarter. TD Asset Management Inc. now owns 63,943 shares of the company’s stock worth $272,000 after purchasing an additional 2,700 shares during the period. Nordea Investment Management AB raised its holdings in Rite Aid Corporation by 24.4% in the 1st quarter. Nordea Investment Management AB now owns 29,061 shares of the company’s stock worth $124,000 after purchasing an additional 5,706 shares during the period. Finally, KBC Group NV raised its holdings in Rite Aid Corporation by 12.0% in the 1st quarter. KBC Group NV now owns 98,593 shares of the company’s stock worth $419,000 after purchasing an additional 10,587 shares during the period. 52.62% of the stock is owned by institutional investors.

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About Rite Aid Corporation

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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