Rite Aid Corporation (NYSE: RAD) stock jumped 12.15% on Friday to $9.23 against a previous-day closing price of $8.23. With 4.31 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.83 million shares. During the session, the Pharmaceutical Retailers company that operates in wider Healthcare sector, reached to the highest price of $9.68 whereas the lowest price it dropped to was $8.02. The 52-week range on RAD shows that it touched its highest point at $19.22 and its lowest point at $4.68 during that stretch. It currently has a 1-year price target of $5.50. Beta for the stock currently stands at 0.95.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RAD was up-trending over the past week, with a rise of 26.79%, but this was up by 36.94% over a month. Three-month performance surged to 44.90% while six-month performance fell -11.42%. The stock lost -39.28% in the past year, while it has lost -37.17% so far this year. A look at the trailing 12-month EPS for RAD yields -11.73 with Next year EPS estimates of -1.49. For the next quarter, that number is -0.56. This implies an EPS growth rate of -434.10% for this year and -79.40% for next year. EPS is expected to decline by -3.69% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -45.89%.
Float and Shares Shorts:
At present, 54.35 million RAD shares are outstanding with a float of 54.10 million shares on hand for trading. On Apr 28, 2022, short shares totaled 17.06 million, which was 30.66% higher than short shares on Mar 30, 2022. In addition to Ms. Heyward Rutledge Donigan B.A. as the firm’s Pres, CEO & Director, Mr. Matthew C. Schroeder serves as its CFO & Exec. VP.
Through their ownership of 67.98% of RAD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 4.16% of RAD, in contrast to 34.86% held by mutual funds. Shares owned by individuals account for 30.51%. As the largest shareholder in RAD with 6.95% of the stake, BlackRock Fund Advisors holds 3,866,239 shares worth 3,866,239. A second-largest stockholder of RAD, The Vanguard Group, Inc., holds 3,794,891 shares, controlling over 6.82% of the firm’s shares. Invesco Advisers, Inc. is the third largest shareholder in RAD, holding 2,503,783 shares or 4.50% stake. With a 4.49% stake in RAD, the Invesco Global Opportunities Fund is the largest stakeholder. A total of 2,500,000 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.79% of RAD stock, is the second-largest Mutual Fund holder. It holds 1,550,572 shares valued at 10.45 million. iShares Russell 2000 ETF holds 2.22% of the stake in RAD, owning 1,232,439 shares worth 8.31 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RAD since 3 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With RAD analysts setting a high price target of $8.00 and a low target of $4.00, the average target price over the next 12 months is $6.33. Based on these targets, RAD could drop -13.33% to reach the target high and fall by -56.66% to reach the target low. Reaching the average price target will result in a decline of -31.42% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. RAD will report FY 2023 earnings on 04/13/2023. Analysts have provided yearly estimates in a range of -$0.91 being high and -$2.22 being low. For RAD, this leads to a yearly average estimate of -$1.39. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Rite Aid Corporation surprised analysts by $0.10 when it reported -$0.60 EPS against a consensus estimate of -$0.70. The surprise factor in the prior quarter was -$1.14. Based on analyst estimates, the high estimate for the next quarter is -$0.40 and the low estimate is -$0.65. The average estimate for the next quarter is thus -$0.50.
Summary of Insider Activity:
Insiders traded RAD stock several times over the past three months with 0 Buys and 13 Sells. In these transactions, 0 shares were bought while 75,967 shares were sold. The number of buy transactions has increased to 2 while that of sell transactions has risen to 21 over the past year. The total number of shares bought during that period was 40,350 while 123,497 shares were sold.