Rite Aid Corporation (RAD) Stock: Why It’s Gaining In Value


Rite Aid Corporation (RAD) is climbing in the market in today’s trading session. The company, focused on the service sector, is currently priced at $0.70 after gaining -0.09% so far in today’s session. When it comes to service stocks, there are several factors that have the ability to generate movement in the market. News is one of the most common reasons for movement. Here are the most recent trending headlines relating to RAD:

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Mar-21-19 01:40PM Rite Aid Shareholders Approve Reverse Stock Split Plan
01:35PM Rite Aid gets OK for plan to boost flagging stock price
11:00AM The Rite Aid Foundation, Attorney General Josh Shapiro and Pittsburgh Penguins Foundation Host Teacher Training for Prescription Drug Safety Program in Western Pennsylvania
10:46AM Rite Aid shareholders approve plans for reverse stock split
10:43AM Rite Aid shareholders approve reverse stock split

However, any time investors are making a decision to invest, prospective investors should focus on far more than news, especially in the ever complex service sector. Here’s what’s happening with Rite Aid Corporation.

Trends That We’ve Seen From RAD

Although a single session gain, like the move that we’re seeing from Rite Aid Corporation might lead to fear in some investors, a single session fall alone shouldn’t be the basis of a decision to, or not to, invest in a stock. It’s always a good idea to take a look at trends experienced by the stock beyond a single session. When it comes to RAD, below are the returns on investment that investors have seen:

  • Past 5 Sessions – Over the past 7 days, RAD has produced a price change amounting to -4.77%.
  • Past 30 Days – The performance from Rite Aid Corporation over the last month has been -9.73%.
  • Past Quarter – In the past quarter, the company has produced a return that comes to -18.10%
  • Bi-Annually – In the past six months, we have seen a performance that equates to -47.73% from the company.
  • YTD – Since the open of this year RAD has produced a ROI of -1.85%.
  • Annually – Finally, in the past year, we have seen movement that comes to -54.26% out of RAD. Throughout this period of time, the stock has sold at a high of -67.21% and a low of 15.87%.

Important Ratios

Looking at various ratios having to do with a company generally gives prospective investors a look of just how risky and/or rewarding a pick may be. Here are a few of the most important ratios to consider when digging into RAD.

Short Ratio – The short ratio is a measure of short interest. As the short ratio climbs, it means that more investors have a belief that the value of the stock is going to head up. Across the sector, strong service sector stocks tend to have a lower short ratio. On the other hand, we also see a lot of short squeezes in the sector. Nonetheless, as it relates to Rite Aid Corporation, it’s short ratio clocks in at 8.31.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Basically, they measure If a company is able to pay its debts when they mature based on current assets or quick assets. come with good current and quick ratios. In terms of RAD, the quick and current ratios total up to 0.90 and 1.60 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets owned by the company to the price of shares. In this case, the book to share value ratio is 1.37.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value comes to 0.36.

What Are Big Money Players Doing With Rite Aid Corporation

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in RAD, here’s what we’re seeing:

  • Institutions – As it stands now, institutions own 47.50% of RAD. However, it’s important to note that the ownership held by institutions has changed in the amount of -7.27% over the past quarter.
  • Insider Moves – As far as insiders go, those close to the company currently own 1.50% of the company. Their ownership of the company has seen a move of 0.00% throughout the last 3 months.

How Analysts Feel About Rite Aid Corporation

Although it’s rarely a smart idea to blindly follow the thoughts of analysts, it is a smart idea to consider their opinions to validate your own thoughts before making investment decisions in the service sector. Below you’ll find the most recent moves that we’ve seen from analysts with regard to RAD.

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Sep-06-18 Resumed Goldman Sell $1
Jan-05-18 Initiated Evercore ISI Underperform
Dec-04-17 Initiated Deutsche Bank Hold $2.25
Oct-06-17 Reiterated Mizuho Neutral $2.95 → $2.25
Sep-29-17 Reiterated Loop Capital Hold $2.50 → $2

What We’ve Seen In earnings results

What have ween seen from RAD in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – As it stands, Wall St. analysts have expectations that Rite Aid Corporation will report EPS that totals up to be 0.02, with -0.01 to be announced in the earnings report for the current quarter. Although this is not based on earnings, since we’re chatting on the topic of Wall St. analysts, the stock is presently graded as a 3.40 considering a scale that ranges from 1 to 5 on which 1 is the worst possible Wall Street analyst rating and 5 is the best rating.
  • 5-Year Sales – Over the last half decade, Rite Aid Corporation has reported a movement in sales that works out to be -3.20%. Earnings per share through the last 5 years have seen movement in the amount of -17.10%.
  • Q/Q – when it comes to quarter over quarter earnings performance, or Q/Q data as it is generally explained in today’s society, RAD has generated a change in earnings that amounts to 6.00%. Rite Aid Corporation has also seen a change in regard to sales that amounts to 1.80%.

Float Information

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 1.14B shares of Rite Aid Corporation outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, RAD has a float of 1.06B.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to RAD, the short percent of the float is 11.93%.

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