why Rite Aid Corporation [RAD] is a Good Choice for Investors After New Price Target of $5.50

Rite Aid Corporation [NYSE: RAD] gained 12.08% or 1.14 points to close at $10.58 with a heavy trading volume of 6151708 shares. The company report on August 9, 2022 that Rite Aid to Host Retail Shareholder Webcast Event on August 24, 2022.


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Rite Aid Corporation (NYSE: RAD) today announced that Heyward Donigan, president and chief executive officer, and Matt Schroeder, chief financial officer, will host a virtual retail shareholder investor event at 11 a.m. ET, Aug. 24. The call will be broadcast via the Internet at https://investors.riteaid.com.

“We look forward to engaging with our retail shareholders in this new event customized for their specific interests and questions,” Donigan said. “We are committed to continuing to enhance our dialogue on our growth strategy with this important audience.”.

It opened the trading session at $9.51, the shares rose to $11.605 and dropped to $9.4999, the range by which the price of stock traded the whole day. The daily chart for RAD points out that the company has recorded -4.86% loss over the past six months. However, it is still -126.07% lower than its most recent low trading price.

If we look at the average trading volume of 2.73M shares, RAD reached to a volume of 6151708 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 $5.50 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 4.00. 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 0.71, with the Price to Sales ratio for RAD stock in the period of the last 12 months amounting to 0.02.

Trading performance analysis for RAD stock

Rite Aid Corporation [RAD] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 21.33. With this latest performance, RAD shares gained by 59.10% in over the last four-week period, additionally sinking by -4.86% over the last 6 months – not to mention a drop of -31.52% 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 74.28, with the RSI for the last a single of trading hit 80.10, and the three-weeks RSI is set at 69.64 for Rite Aid Corporation [RAD]. The present Moving Average for the last 50 days of trading for this stock 7.30, while it was recorded at 9.41 for the last single week of trading, and 9.56 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 0.60 and a Current Ratio set at 1.30.

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 $406 million, or 64.90% of RAD stock, in the hands of institutional investors. The top three institutional holders of RAD stocks are: VANGUARD GROUP INC with ownership of 5,621,500, which is approximately 6.233% of the company’s market cap and around 3.70% of the total institutional ownership; BLACKROCK INC., holding 4,918,018 shares of the stock with an approximate value of $52.03 million in RAD stocks shares; and INVESCO LTD., currently with $29.59 million in RAD stock with ownership of nearly 2.567% of the company’s market capitalization.

Positions in Rite Aid Corporation stocks held by institutional investors increased at the end of June and at the time of the June reporting period, where 95 institutional holders increased their position in Rite Aid Corporation [NYSE:RAD] by around 9,547,432 shares. Additionally, 75 investors decreased positions by around 6,087,705 shares, while 50 investors held positions by with 22,713,311 shares. The mentioned changes placed institutional holdings at 38,348,448 shares, according to the latest SEC report filing. RAD stock had 33 new institutional investments in for a total of 3,374,293 shares, while 34 institutional investors sold positions of 2,469,778 shares during the same period.

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