Shares of Rite Aid (NYSE: RAD)were climbing last month as the company announced a rebranding plan and benefited from vaccine news, as the company is poised to be a major destination for Americans to get the coronavirus vaccine.
Why did Rite Aid stock crash Thursday?
Rite Aid ( RAD -24.29% ) stock was crashing on Thursday with shares plunging 24.5% as of 11:56 a.m. ET. The steep decline came after Deutsche Bank analyst George Hill downgraded the stock from "hold" to "sell" and slashed his price target from $16 to $1.
Why is Rite Aid (Rad) stock in the spotlight today?
Why Is Rite Aid (RAD) Stock in the Spotlight Today? Rite Aid (NYSE: RAD) stock is in focus today after The New York Post reported that the company had turned down a takeover bid from Spear Point Capital Management. On March 30, Spear Point, a private equity firm, offered to acquire Rite Aid for $14.60 a share.
Is Rite Aid stock a buy after turning down a takeover bid?
Rite Aid (NYSE: RAD) stock is in focus today after The New York Post reported that the company had turned down a takeover bid from Spear Point Capital Management. On March 30, Spear Point, a private equity firm, offered to acquire Rite Aid for $14.60 a share.
How did Rite Aid's earnings beat analysts'estimates?
However, Rite Aid's adjusted earnings of $0.38 per share easily beat the average analysts' estimate of $0.22 per share. Image source: Getty Images.
Why Rite Aid stock went up?
Financial Performance That changed after Rite Aid executed a 1-for-20 reverse stock split which brought its stock price above the threshold. 2 Since then, the stock has traded around $10 per share. Rite Aid reported full-year earnings for the 2021 fiscal year in April 2021.
Is Rite Aid stock a good buy?
Rite Aid Corporation - Hold Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of RAD, demonstrate its potential to outperform the market. It currently has a Growth Score of A.
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.
Is Rite Aid Struggling?
And by December 2021, Rite Aid's struggles had been amplified: The pharmacy chain announced that it would be closing 63 stores over the next two years. Analyst sentiment on Rite Aid has continued to decline in recent months, Barron's reported.
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
Is RAD a buy or Sell?
Rite Aid has received a consensus rating of Sell. The company's average rating score is 1.00, and is based on no buy ratings, no hold ratings, and 3 sell ratings.
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.
Will Rite Aid get bought out?
Sale of stores to Walgreens On October 27, 2015, Walgreens announced that it would acquire Rite Aid for $9.4 billion, pending regulatory and shareholder approval. The deal would have resulted in a merger of two of the United States' three largest pharmacy chains.
Is Walgreens buying Rite Aid?
Last year Walgreens agreed to buy more than 1,900 Rite Aid stores and three distribution centers for $4.4 billion, a deal that leaves Rite Aid a much smaller chain operating in eight states. This year, the first stores have started to switch over to the Walgreens family.
Is Rite Aid profitable?
Net loss from continuing operations was $36.1 million, or $0.67 per share, compared to last year's third quarter net income from continuing operations of $4.3 million, or $0.08 per share.
Is Rite Aid closing in California?
Two area Rite Aid locations are shuttering this week, marking the fifth and sixth to close their doors in the greater Sacramento area so far in 2022. Two area Rite Aid locations are shuttering this week, marking the fifth and sixth to close their doors in the greater Sacramento area so far in 2022.
Is Rite Aid a national chain?
Rite Aid Corporation is also proud to be one of the nation's leading drugstore chains. With approximately 2,500 stores in 17 states, we have a strong presence on both the East and West Coasts, employing more than 51,000 associates.
Investors don't like the company's first-quarter update
Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. His background includes serving in management and consulting for the healthcare technology, health insurance, medical device, and pharmacy benefits management industries. Follow @keithspeights
What happened
Shares of Rite Aid ( NYSE:RAD) were plunging 14.3% lower as of 11:22 a.m. EDT on Thursday. The steep decline came after the pharmacy retailer reported its fiscal 2022 first-quarter results before the market opened.
So what
As you might expect after today's sell-off of the healthcare stock, investors weren't happy with Rite Aid's first-quarter results. The company reported revenue of $6.16 billion, below the consensus estimate of $6.21 billion. However, Rite Aid's adjusted earnings of $0.38 per share easily beat the average analysts' estimate of $0.22 per share.
Now what
It's more important to focus on a company's long-term prospects than how it performs in a single quarter. Rite Aid CEO Heyward Donigan said she thinks the pharmacy retailer is on the right track going forward, saying, Rite Aid is in a position to benefit from "a healthier economy and the reopening of the communities we serve."
