Rite Aid Corporation (RAD): A Good Time To Get In The Game?

Analysts at Goldman, assumed coverage of Rite Aid Corporation (NYSE:RAD) with Sell recommendation, according to their opinion released on September 06.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Rite Aid Corporation (NYSE:RAD)’s prospects. The earliest insider trade took place on 10/03/2017. Potter Myrtle S parted with a total of 28.19 thousand shares of company at average share price of $2.09. The total for the sales was set at $58.92 thousand. After this transaction, the Director account balance stood at 78.79 thousand shares. The stock lost -50.72 percent since that insider sale. On 06/15/2016, Donley Douglas E, SVP, sold 34.11 thousand shares at a price per share of $7.77. This removed 265 thousand shares from the insider’s fortune and the stock saw a -86.74 percent retreat in value since the news became public. This transaction left 48.78 thousand shares in the SVP account. On 07/09/2015, EVP Montini Tony performed a sale transaction worth $2.96 million. This sale at $8.38 each has eliminated 353.19 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -87.71 percent decrease since the transaction was reported. The insider now is left with 266.6 thousand shares remaining in the account. Anderson Joseph B Jr, who performs the Director job, sold 150 thousand shares for $1.24 million. The disposal occurred on 04/15/2015 was priced at $8.25 per share. The share price plunged -87.52 percent since the reporting date. Anderson Joseph B Jr now left with a stake of 299.25 thousand RAD stock worth $308.23 thousand after the insider selling.

Rite Aid Corporation (RAD) is expected to jump by 21.36 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $1.5-month high price target. This represents a whopping 45.63 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $1, which represents a return potential of -2.91 percent when compared to the closing price of the stock of $1.03 on Thursday, December 06. The lowest price target for the stock is $1 — slightly more than -2.91 percent from RAD’s current share price.

The shares are currently floating around the first support level of $1. Below this, the next support is placed in the zone of $0.98. Till the time, the RAD stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 34.65 on daily chart, which may remain a cause for comfort. If the price breaks below $0.98 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $1.05 mark may result into a pull-back move towards $1.08 level.

RAD shares dropped -0.01 points or -0.96 percent on Thursday to $1.03 with a heavy trade volume of 15.207 million shares. After opening the session at $1.04, the shares went as high as $1.05 and as low as $1, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.12 billion and now has 1.09 billion shares outstanding. Rite Aid Corporation (RAD) stock has lost -16.26 percent of market value in 21 trading days.

RAD stock has a trailing 3-year beta of 1.43, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.54 a share in the trailing twelve months. The stock’s value has fallen -47.72 percent year to date (YTD) against a decline of -41.48 percent in 12 month’s time. The company’s shares still trade -59.61 percent away from its 1-year high of $2.55 and 5.1 percent up from 52-week low of $0.98. The average consensus rating on the company is 3.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Shares of Rite Aid Corporation (RAD) are trading at a P/E ratio of 23.93 times earnings reported for the past 12 months. The industry RAD operates in has an average P/E of 21.43. Its P/E ratio went as low as 3.84X and as high as 1426.7 over the 5-year span. Further, it is sporting a 0.05 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.29. 22.2 percent is the gross profit margin for Rite Aid Corporation and operating margin sits at -2.8 percent. Along with this, the net profit margin is 3.3 percent.