It is Poised to be a Bull Market for Rite Aid Corporation (RAD)

Rite Aid Corporation (NYSE: RAD) stock jumped 4.08% on Friday to $3.32 against a previous-day closing price of $3.19. With 2.32 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.48 million shares. During the session, the Pharmaceutical Retailers company that operates in wider Healthcare sector, reached to the highest price of $3.3400 whereas the lowest price it dropped to was $3.1700. The 52-week range on RAD shows that it touched its highest point at $11.80 and its lowest point at $3.18 during that stretch. It currently has a 1-year price target of $3.00. Beta for the stock currently stands at 1.20.

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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 down-trending over the past week, with a drop of -6.21%, but this was down by -18.63% over a month. Three-month performance dropped to -17.82% while six-month performance fell -55.56%. The stock lost -71.43% in the past year, while it has lost -0.60% so far this year. A look at the trailing 12-month EPS for RAD yields -16.50 with Next year EPS estimates of -1.84. For the next quarter, that number is -0.77. This implies an EPS growth rate of -434.10% for this year and 14.80% 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, 54.79 million RAD shares are outstanding with a float of 54.38 million shares on hand for trading. On Oct 13, 2022, short shares totaled 10.24 million, which was 18.11% higher than short shares on Sep 14, 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.

Institutional Ownership:

Through their ownership of 60.35% of RAD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.66% of RAD, in contrast to 34.71% held by mutual funds. Shares owned by individuals account for 17.68%. As the largest shareholder in RAD with 6.95% of the stake, The Vanguard Group, Inc. holds 3,928,527 shares worth 3,928,527. A second-largest stockholder of RAD, BlackRock Fund Advisors, holds 3,443,609 shares, controlling over 6.09% of the firm’s shares. Invesco Advisers, Inc. is the third largest shareholder in RAD, holding 2,502,665 shares or 4.43% stake. With a 2.88% stake in RAD, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 1,629,535 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 2.14% of RAD stock, is the second-largest Mutual Fund holder. It holds 1,209,462 shares valued at 4.04 million. Vanguard Extended Market Index Fu holds 1.41% of the stake in RAD, owning 794,332 shares worth 2.65 million.

Analysts Ratings:

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 $3.00 and a low target of $3.00, the average target price over the next 12 months is $3.00. Based on these targets, RAD could drop -9.64% to reach the target high and fall by -9.64% to reach the target low. Reaching the average price target will result in a decline of -9.64% 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 -$2.14 being high and -$2.18 being low. For RAD, this leads to a yearly average estimate of -$2.16. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Rite Aid Corporation surprised analysts by $0.01 when it reported -$0.14 EPS against a consensus estimate of -$0.15. The surprise factor in the prior quarter was -$0.13. Based on analyst estimates, the high estimate for the next quarter is -$0.76 and the low estimate is -$0.81. The average estimate for the next quarter is thus -$0.78.

Summary of Insider Activity:

Insiders traded RAD stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 20 over the past year. The total number of shares bought during that period was 951,850 while 128,346 shares were sold.

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