Zacks Investment Research upgraded shares of Rite Aid Corp. (NYSE:RAD) from a sell rating to a hold rating in a research report released on Wednesday.

According to Zacks, “Rite Aid’s stringent focus on cost management, alongside strengthening its portfolio of health and wellness services has been impressive. However, the company faced challenges related to pharmacy reimbursement rate that also pressured its top-line in the second quarter of fiscal 2017. Further, these hurdles are anticipated to linger throughout fiscal 2017, thus raising concerns over the company’s near-term performance. Moreover, risks related to increased industry consolidation and intense competition from other drug-store chains cannot be ignored. Nonetheless, Rite Aid’s constant endeavors to enhance pharmacy and clinical services bode well. Further, the company remains positioned to gain from its merger with Walgreens Boots Alliance, which is now expected to close by the end of January 2017, reflecting an extension from its previous deadline. Estimates have also been stable ahead of the company's third-quarter earnings.”

Separately, Vetr upgraded shares of Rite Aid Corp. from a buy rating to a strong-buy rating in a research note on Friday, September 30th. Five investment analysts have rated the stock with a hold rating, one has given a buy rating and one has issued a strong buy rating to the company’s stock. Rite Aid Corp. currently has an average rating of Hold and a consensus target price of $9.01.

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

Shares of Rite Aid Corp. (NYSE:RAD) traded up 1.96% on Wednesday, hitting $7.80. 6,804,071 shares of the stock were exchanged. Rite Aid Corp. has a one year low of $6.33 and a one year high of $8.30. The firm has a market capitalization of $8.14 billion, a PE ratio of 60.47 and a beta of 1.89. The company has a 50-day moving average price of $7.10 and a 200-day moving average price of $7.45.

Rite Aid Corp. (NYSE:RAD) last issued its quarterly earnings results on Thursday, September 22nd. The company reported $0.03 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.03. Rite Aid Corp. had a net margin of 0.41% and a return on equity of 32.41%. The firm had revenue of $8 million for the quarter. During the same quarter in the previous year, the firm posted $0.02 earnings per share. The firm’s quarterly revenue was up 4.8% on a year-over-year basis. Equities research analysts expect that Rite Aid Corp. will post $0.12 earnings per share for the current year.

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Concorde Asset Management LLC purchased a new position in shares of Rite Aid Corp. during the second quarter worth approximately $102,000. SevenBridge Financial Group LLC purchased a new position in shares of Rite Aid Corp. during the second quarter worth approximately $102,000. Atlas Brown Inc. increased its position in shares of Rite Aid Corp. by 16.7% in the third quarter. Atlas Brown Inc. now owns 14,000 shares of the company’s stock worth $108,000 after buying an additional 2,000 shares during the period. Wedbush Securities Inc. increased its position in shares of Rite Aid Corp. by 14.5% in the third quarter. Wedbush Securities Inc. now owns 14,125 shares of the company’s stock worth $109,000 after buying an additional 1,789 shares during the period. Finally, Koshinski Asset Management Inc. purchased a new position in shares of Rite Aid Corp. during the third quarter worth approximately $109,000. 61.78% of the stock is owned by institutional investors.

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Rite Aid Corp. Company Profile

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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