Deutsche Bank slashes price target on Rite Aid Corporation [RAD] – find out why.

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Rite Aid Corporation [NYSE: RAD] loss -7.04% or -0.5 points to close at $6.60 with a heavy trading volume of 3008568 shares. The company report on May 3, 2022 that Rite Aid and Afterpay Partner to Offer ‘Buy Now, Pay Later’ on Everyday Items.

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Rite Aid becomes the first national drugstore chain to offer Afterpay’s flexible payment solution to shop online and pay later for household necessities from health and beauty to baby care and grocery.

Afterpay, the leader in “Buy Now, Pay Later” (BNPL) payments, and trusted care retailer Rite Aid (NYSE: RAD) announced their partnership today, offering Rite Aid’s online shoppers a new way to pay for everyday items in four installments at no additional cost when you pay on time. This partnership will help customers access and spend responsibly on everyday goods with Afterpay’s powerful budgeting tool.

It opened the trading session at $7.03, the shares rose to $7.07 and dropped to $6.455, the range by which the price of stock traded the whole day. The daily chart for RAD points out that the company has recorded -57.03% loss over the past six months. However, it is still -8.02% lower than its most recent low trading price.

If we look at the average trading volume of 4.00M shares, RAD reached to a volume of 3008568 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Rite Aid Corporation [RAD]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RAD shares is $3.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RAD stock is a recommendation set at 3.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Deutsche Bank have made an estimate for Rite Aid Corporation shares, keeping their opinion on the stock as Sell, with their previous recommendation back on April 07, 2022. While these analysts kept the previous recommendation, JP Morgan dropped their target price from $21 to $12. The new note on the price target was released on June 25, 2021, representing the official price target for Rite Aid Corporation stock. Previously, the target price had yet another raise from $17 to $27, while Deutsche Bank kept a Hold rating on RAD stock.

The Average True Range (ATR) for Rite Aid Corporation is set at 0.70, with the Price to Sales ratio for RAD stock in the period of the last 12 months amounting to 0.02. The Price to Book ratio for the last quarter was 3.61, with the Price to Cash per share for the same quarter was set at 0.69. Price to Free Cash Flow for RAD in the course of the last twelve months was 2.06 with Quick ratio for the last quarter at 0.50.

Trading performance analysis for RAD stock

Rite Aid Corporation [RAD] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.30. With this latest performance, RAD shares dropped by -23.61% in over the last four-week period, additionally sinking by -57.03% over the last 6 months – not to mention a drop of -62.88% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for RAD stock in for the last two-week period is set at 39.34, with the RSI for the last a single of trading hit 40.13, and the three-weeks RSI is set at 39.14 for Rite Aid Corporation [RAD]. The present Moving Average for the last 50 days of trading for this stock 8.36, while it was recorded at 6.66 for the last single week of trading, and 12.44 for the last 200 days.

Rite Aid Corporation [RAD]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Rite Aid Corporation [RAD] shares currently have an operating margin of +0.69 and a Gross Margin at +19.83. Rite Aid Corporation’s Net Margin is presently recorded at -2.19.

Return on Equity for this stock declined to -150.79, with Return on Assets sitting at -5.38.

Rite Aid Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.50 and a Current Ratio set at 1.20.

Rite Aid Corporation [RAD]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for RAD. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Rite Aid Corporation go to -3.69%.

An analysis of insider ownership at Rite Aid Corporation [RAD]

There are presently around $250 million, or 67.50% of RAD stock, in the hands of institutional investors. The top three institutional holders of RAD stocks are: VANGUARD GROUP INC with ownership of 5,291,657, which is approximately 2.328% of the company’s market cap and around 1.80% of the total institutional ownership; BLACKROCK INC., holding 4,660,384 shares of the stock with an approximate value of $33.09 million in RAD stocks shares; and INVESCO LTD., currently with $19.36 million in RAD stock with ownership of nearly -0.152% of the company’s market capitalization.

Positions in Rite Aid Corporation stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 93 institutional holders increased their position in Rite Aid Corporation [NYSE:RAD] by around 6,914,947 shares. Additionally, 77 investors decreased positions by around 3,341,719 shares, while 53 investors held positions by with 25,020,274 shares. The mentioned changes placed institutional holdings at 35,276,940 shares, according to the latest SEC report filing. RAD stock had 36 new institutional investments in for a total of 1,439,538 shares, while 31 institutional investors sold positions of 1,661,299 shares during the same period.