Here's what's left of struggling Rite Aid after Walgreens merger blows up

Jun 30, 2017, 00:45
Here's what's left of struggling Rite Aid after Walgreens merger blows up

Thursday morning's announcement represents the second time the two companies have tinkered with terms of a transaction, slashing the price both times, as they tried to win approval from the Federal Trade Commission.

Stronger because Rite Aid plans to use most of the proceeds of the sale, along with a $325 million merger breakup fee - to pay down $7 billion-plus in debt that has been choking the company for years. The company made Return on equity of 0.70% in last 12 months period.

The Company's sales have grown at an average annualized rate of about 4.70% during the past five years.

A number of equities research analysts have recently weighed in on the company. Rite Aid Corporation (NYSE:RAD) has declined 55.18% since June 27, 2016 and is downtrending. If you are accessing this piece of content on another publication, it was stolen and reposted in violation of USA & worldwide trademark and copyright laws.

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As the earnings date approaches, we can see that insider ownership is now 0.70% shares, and institutional ownership is at 59.70% for Rite Aid Corporation (NYSE:RAD) stock.

RAD has been the topic of Quite a few brokerage firm research. The lowest price the stock reached in the last trading day was $61.12 and compares with the $49.5 52-week low.

Let's have a look at some of the important valuation ratios of the Rite Aid Corporation (RAD). Guggenheim downgraded Rite Aid Corporation from a "buy" rating to a "neutral" rating in a report on Tuesday, April 25th. Credit Suisse Group reiterated an "outperform" rating and issued a $6.50 price target on shares of Rite Aid Corporation in a report on Monday, March 20th.

Rite Aid Corporation (RAD) stock price moved 22.71% away from 20-Days Simple Moving Average, 9.62% from 50-Days Simple Moving Average and separated -32.85% from 200 Days Simple Moving Average. Three equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company. Analysts mean target price for J C Penney Company Inc (NYSE:JCP) is $6.66 while their mean recommendation is 2.80 (1=Buy, 5=sell). With Rite Aid stock now trading near $4 in less than three weeks, I think it is safe to say we were right. Moreover, Kennedy Capital Management Inc. has 0.06% invested in the company for 324,749 shares.

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Under the current plan, it is no longer purchasing Rite Aid at all, but merely acquiring stores and other assets from the company. Canal Insurance CO now owns 300,000 shares of the company's stock worth $2,472,000 after buying an additional 100,000 shares in the last quarter. Lastly, OLD Mutual Customised Solutions Proprietary increased its position in Rite Aid Corporation by 102.1% in the Q1.

The Pharmaceutical Wholesale division recorded quarterly sales of $5.3 billion, down 7.9% year over year (up 3.7% at CER). Stock investors bought 30,000 call options on the company.

Standley continued, "I would like to thank our entire Rite Aid team for their extraordinary efforts during this process and their tremendous focus on taking great care of our customers and patients". The Firm operates under The Rite Aid name.

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