Zacks Investment Research downgraded shares of Rite Aid Corp. (NYSE:RAD) from a hold rating to a sell rating in a research note published on Thursday morning.

According to Zacks, “Rite Aid posted a mixed second-quarter fiscal 2017. While it managed to report earnings in line with our estimates top line missed mainly backed by lower Retail Pharmacy segment revenues. Additionally, the company’s earnings fell year over year mainly attributed to fall in adjusted EBITDA, offset by lower taxes and interest expense. Further, the company stated that challenges relating to the pharmacy reimbursement rate pressured results and the trend is expected to continue through the rest of the fiscal year. However, the company’s stringent focus on cost management and strengthening its portfolio of health and wellness services remains impressive. Its constant endeavors to enhance pharmacy and clinical services also bode well. Moreover, the company remains positioned to gain from its merger with Walgreens Boots Alliance, which is anticipated to close in second-half calendar 2016.”

A number of other analysts have also recently issued reports on the stock. JPMorgan Chase & Co. restated a hold rating on shares of Rite Aid Corp. in a research note on Friday, June 17th. Evercore ISI cut shares of Rite Aid Corp. from a buy rating to a hold rating in a research note on Wednesday, June 1st. One analyst has rated the stock with a sell rating, five have given a hold rating and three have given a buy rating to the company’s stock. Rite Aid Corp. currently has a consensus rating of Hold and a consensus price target of $9.11.

Analyst Recommendations for Rite Aid Corp. (NYSE:RAD)

Rite Aid Corp. (NYSE:RAD) traded up 1.19% on Thursday, hitting $7.66. 2,484,052 shares of the stock traded hands. The firm’s 50 day moving average is $7.79 and its 200 day moving average is $7.71. The stock has a market cap of $8.00 billion, a price-to-earnings ratio of 59.38 and a beta of 1.78. Rite Aid Corp. has a 52 week low of $5.92 and a 52 week high of $8.74.

Rite Aid Corp. (NYSE:RAD) last announced its quarterly earnings results on Thursday, September 22nd. The company reported $0.03 EPS for the quarter, meeting analysts’ consensus estimates of $0.03. The firm earned $8 million during the quarter. Rite Aid Corp. had a net margin of 0.41% and a return on equity of 32.41%. The business’s revenue was up 4.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.02 EPS. Equities analysts anticipate that Rite Aid Corp. will post $0.15 earnings per share for the current year.

A number of large investors have recently bought and sold shares of the company. Concorde Asset Management LLC acquired a new stake in Rite Aid Corp. during the second quarter valued at approximately $102,000. SevenBridge Financial Group LLC bought a new stake in Rite Aid Corp. during the second quarter valued at $102,000. Mizuho Asset Management Co. Ltd. bought a new stake in Rite Aid Corp. during the second quarter valued at $110,000. Passport Capital LLC bought a new stake in Rite Aid Corp. during the second quarter valued at $110,000. Finally, Buckingham Asset Management LLC bought a new stake in Rite Aid Corp. during the second quarter valued at $121,000. Institutional investors and hedge funds own 63.13% of the company’s stock.

About Rite Aid Corp.

Rite Aid Corporation is a retail drugstore chain. The Company’s segments include Retail Pharmacy and Pharmacy Services. The Company operates under The Rite Aid name. It operates approximately 4,560 stores in over 30 states across the country and in the District of Columbia. The Company’s Retail Pharmacy segment consists of Rite Aid stores, RediClinic and Health Dialog.

5 Day Chart for NYSE:RAD

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