Rite Aid Corporation (RAD) is a drugstore chain in the United States. The company ranked No. 94 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.
The stock soared more than 20% in Thursday’s pre market trading hours after the pharmacy retailer beat third quarter expectations. The net income totaled $51.5 million or 96 cents per share. Adjusted EPS of 54 cents blew past FactSet consensus for 7 cents per share.
For the fiscal year 2020 Rite Aid expects revenue between $21.5 billion and $21.9 billion, same store sales to be flat to up 1% and adjusted EPS to be between 13 cents and 55 cents. The FactSet consensus is for revenue of $21.6 billion, same-store sales growth of 0.5% and EPS of 10 cents. Rite Aid shares have lost 48.7% over the last year while the S&P 500 index is up 27.3% for the period.
Rite AID Corp (RAD) Analyst Recommendations
2 analysts recommend a hold rating while 4 analysts recommend a sell rating in September.
In the month of November 1 analyst recommends a hold and 4 recommends a sell. The over all analyst rating is 4.60 (SELL) and expects the price target to decrease to $6.50.
Should you buy Rite Aid Corp (RAD)?
You should not buy right now, prominent investors are becoming less hopeful and the number of vested hedge funds has dropped by 1 recently. Rite Aid Corp is not among to 30 most popular hedge funds. So if you’re know what you’re doing then continue.
At Q3’s end, a total of 8 of the hedge funds tracked were bullish on this stock, a change of -11% from one quarter earlier. By comparison, 18 hedge funds held shares or bullish call options in RAD a year ago. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
Due to the fact that Rite Aid Corporation (NYSE:RAD) has witnessed falling interest from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of fund managers that slashed their full holdings last quarter. Interestingly, Bruce J. Richards and Louis Hanover’s Marathon Asset Management sold off the biggest stake of the 750 funds tracked, comprising close to $4.1 million in stock. Dmitry Balyasny’s fund, Balyasny Asset Management, also dropped its stock, about $0.8 million worth. These transactions are interesting, as total hedge fund interest dropped by 1 funds last quarter. If not, don’t buy right now.
