Rite Aid Corporation (RAD) Stock: Here’s Why It’s Up

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Rite Aid Corporation (RAD) is trending up in the market in today’s trading session. The stock, focused on the service space, is presently trading at $0.65 after heading up -3.90% so far today. In terms of service sector companies, there are a number of aspects that have the ability to generate gains in the market. News is one of the most common reasons for movement. Here are the recent headlines centered around RAD:

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Mar-25-19 09:00AM Rite Aid Kicks Off 25th Annual Miracle Balloon Campaign to Support Childrens Miracle Network Hospitals
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

Nonetheless, when making a decision with regard to investing, investors should look into much more than just news, especially in the ever complex service industry. Here’s what’s going on with Rite Aid Corporation.

Recent Moves From RAD

While a single session gain, like the move that we’re seeing from Rite Aid Corporation may cause fear in some investors, that by itself should not be the basis of a decision to, or not to, invest in a stock. It is generally important to look into trends further out than a single trading session. As it relates to RAD, below are the returns that investors have experienced:

  • Past 5 Trading Sessions – Throughout the past 5 trading sessions, RAD has produced a change in value in the amount of -2.64%.
  • Past Month – The monthly returns from Rite Aid Corporation works out to -9.78%.
  • Past 3 Months – Over the past three months, the company has generated a ROI of -16.84%
  • Past Six Months – Over the previous six months, we’ve seen a performance that works out to -49.29% from the stock.
  • YTD – Since the open of this year RAD has generated a return of -4.79%.
  • Full Year – Lastly, over the last year, investors have seen performance of -56.21% from RAD. In this period of time, the stock has sold at a high of -69.43% and a low price of 8.02%.

Ratios To Pay Attention To

Digging into a few ratios associated with a company generally gives prospective traders an understanding of just how dangerous and/or rewarding a an investment option may be. Here are a few of the key ratios to think about when digging into RAD.

Short Ratio – The short ratio is a tool that’s used by investors to measure the level of short interest. As the ratio heads up, it shows that more investors have a belief that the stock is headed for the top. Across the sector, strong service stocks can carry a lower short ratio. On the other hand, we tend to see quite a few short squeezes in the sector. Nonetheless, as it relates to Rite Aid Corporation, it’s short ratio comes to 8.53.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Basically, they measure whether or not a company can cover its debts when they mature with only quick assets or current assets. do have great quick and current ratios. When it comes to RAD, the quick and current ratios work out to 0.90 and 1.60 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets that are owned by the company. In the case of Rite Aid Corporation, the book to share value ratio comes in at 1.37.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the price of the company’s stock. In the case of RAD, the cash to share value ratio is 0.37.

Smart Money Follows Big Money

An interesting fact I’ve learned so far in my short time in existence is that smart money tends to follow big money players. Usually, investors that are looking to play it relatively safe will keep an eye on investments made by institutions and insiders. With that said, what does the big money picture look like when it comes to RAD? Here’s the information:

Institutions own 47.50% of the company. Institutional interest has moved by -7.41% over the past three months. When it comes to insiders, those who are close to the company currently own 1.50% percent of RAD shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

Analyst Opinions With Regard To Rite Aid Corporation

Although it’s rarely a good idea to blindly follow the opinions of analysts, it is a smart idea to consider their analysis in order to validate your own thoughts when it comes to making investment decisions in the service sector. Below you’ll find the recent moves that we’ve seen from analysts as it relates 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

Financial Performance

What have ween seen from RAD in terms of financial results?Here’s the information:

  • Analyst Expectations – Currently, Wall St. analysts expect that RAD will create EPS of 0.02, with -0.01 to be reported in the earnings report for the current quarter. Although this information is not based on earnings, because we are chatting on the topic of Wall St. analysts, RAD is currently rated a 3.40 when rated on a scale from 1 to 5 where 1 is the worst average Wall Street analyst rating and 5 is the best possible.
  • 5-Year Sales – Over the past 5 years, Rite Aid Corporation has created a change in sales that comes to a total of -3.20%. Earnings per share in the period have experienced a change of -17.10%.
  • Q/Q – when it comes to quarter over quarter earnings data, or Q/Q data as it is generally explained in the human world, RAD has generated a earnings change by 6.00%. RAD has also moved the needle in terms of revenue in the amount of 1.80%.

A Look At Share Counts

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 1.11B 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 11.94%.

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