That buyout potential should put a floor on the stock price, at the very least. Shares of the drugstore chain have fallen to a four-year low following the renegotiated deal with Walgreen, but Rite Aid should emerge a stronger company with much less debt, improved stores, and savings on generic drugs.
Full Answer
Is Rite Aid going out of business?
Rite Aid, meanwhile, has been in steady decline for several years. In 2018, Walgreen’s bought 1,932 Rite Aid stores for $4.37 billion, cutting Rite Aid’s footprint by almost half.
Could Rite Aid be making $1 billion by selling its data?
Spear Point also believes Rite Aid could be making much more by selling its data to other business-including selling its prescription data to insurers-for more than $1 billion. Presently, Rite Aid only shares data with its suppliers to manage inventory, Bienvenu said.
Who will buy Rite Aid’s elixir pharmacy benefits manager?
Spear Point, meanwhile, maintains it has a buyer for Rite Aid’s pharmacy benefits manager, Elixir, which covers 3.2 million lives. The undisclosed buyer is willing to pay $2 billion for the PBM business, which the Fitch Rating Agency recently said it believed was worth $1.2 billion, according to Bienvenu.
Why did Rite Aid reject spear point?
Rite Aid General Counsel Paul Gilbert engaged in talks with Spear Point and rejected the offer, which was conditioned on due diligence of Rite Aid’s financials.
Should I sell my Rite Aid stock?
There are currently 3 sell ratings for the stock. The consensus among Wall Street research analysts is that investors should "sell" Rite Aid stock. View analyst ratings for Rite Aid or view top-rated stocks.
Will Rite Aid stock go up?
quote is equal to 7.960 USD at 2022-06-28. Based on our forecasts, a long-term increase is expected, the "RAD" stock price prognosis for 2027-06-25 is 24.144 USD. With a 5-year investment, the revenue is expected to be around +203.32%. Your current $100 investment may be up to $303.32 in 2027.
Why is Rite Aid stock so low?
A significant portion of Rite Aid's revenue over the last year has been driven by Covid-related contributions, such as vaccinations and testing. As demand for testing and vaccines wanes or remains stagnant, the company could struggle to make up those revenues, Hill said.
Is Rite Aid a good investment?
To add to investors worries, guidance for the 2023 fiscal year demonstrates that management only expects to bring in $23.5 billion in revenue, which is less than its $24.4 billion in trailing 12-month revenue. On top of that, Rite Aid is no longer profitable, with a profit margin of negative 0.69%.
What is the future of Rite Aid?
The retailer is coming off a modestly successful Q3 2022, with retail pharmacy segment revenues up 7.9% and same-store sales up 4.4% in in Q3 2021, but the company experienced an overall net loss of $36 million during the quarter. Rite Aid expects its store closures to have positive results in the long run.
Is Rite Aid a takeover target?
Rite Aid earlier this month quietly rejected a takeover bid that valued the drugstore chain at more than $800 million — despite it being nearly twice the drugstore chain's current stock price, The Post has learned.
Could Rite Aid go out of business?
Rite Aid may fade out of existence as investors doubt its profitability. Pharmacy giant Rite Aid is at risk of going out of business, according to a Deutsche Bank analyst who issued a downgrade for the retailer and said its stock could be worthless.
Is Rite Aid Struggling?
In the first nine months of 2021, Rite Aid's losses had already exceeded losses for the entirety of 2020. But recently, according to analytics firm Placer.ai, Rite Aid's foot traffic has remained below pandemic levels, while at Walgreens and CVS traffic has exceeded 2019 volume nearly every week since October.
Will Rite Aid be bought out?
Attempted acquisition by Albertsons On February 20, 2018, Albertsons announced plans to acquire the remainder of Rite Aid, including the 2,600 stores not acquired by Walgreens, in a merger of equals, subject to shareholder and regulatory approval.
Is Rite Aid undervalued?
Rite Aid Corp holds a recent Real Value of $10.12 per share. The prevailing price of the company is $8.69. At this time, the company appears to be undervalued....February.LowTarget PriceHigh14.0015.0016.00
Why is RAD stock falling?
The latest round of selling in RAD came last week, when analysts at Deutsche Bank slashed their price target for the stock to $1 from $16. The firm also dropped its rating to Sell from Hold, citing concerns that the chain wouldn't meet its preliminary fiscal 2023 guidance of adjusted EBIDTA of at least $430M.
How many stores did Walgreens buy from Rite Aid?
Under the new agreement, Walgreens will buy 2,186 store s, three distribution centers and related inventory from Rite Aid. Walgreens will also assume the related real estate leases and certain limited store-related ...
Is Walgreens taking over Rite Aid?
NEW YORK -- Walgreens Boots Alliance ( WBA) has dropped its takeover pursuit of rival Rite Aid ( RAD ), following resistance from U.S. regulators and will instead now buy stores, distribution centers and inventory in a new $5.1 billion cash deal.
What is the problem with Rite Aid?
Rite Aid's biggest problem right now is its substantial debt burden, at $7.2 billion as of its most recent report. The resulting interest expense from that debt has crushed profits, essentially turning Rite Aid into a breakeven business in recent years. Last year, it paid $432 million in interest, which lowered its operating income by 90%.
Did Walgreens buy Rite Aid?
Instead of Walgreen buying Rite Aid for $9 a share, the world's largest drugstore chain will buy nearly half of Rite Aid's stores at an even higher valuation. Walgreen is acquiring 2,186 of Rite Aid's 4,523 stores, or 48.3% of its base, along with three distribution centers and the inventory that goes along with it for $5.175 billion. Rite Aid will also collect a $325 million merger termination fee for the deal being blocked by Federal Trade Commission regulators.
Is Rite Aid closing?
Rite Aid will remain the No. 3 pharmacy chain in the U.S. after the Walgreen deal, which is expected to close by the end of the year. With more than 2,000 stores, a separate pharmacy business management benefits, and revenue around $20 billion after the sale, it will present an appealing buyout target, especially if its share price continues fall.