![]() Goldman Sachs raised its price target to $5.50, and maintained a sell rating. However, they are both still maintaining a sell rating on the stock. Unfortunately, that didn’t seem to impress analysts.Īnalysts at Guggenheim and Deutsche Bank raised their targets to $12 a share. She also noted the company would “soon reveal” the company’s long-term strategy by “leveraging the trust of expertise of our pharmacists in meeting the unique health and well-being” of customers by their analyst day on March 16. “Our team delivered a strong quarter that provides us with momentum as we prepare to roll out our long-term strategy and position Rite Aid Corporation as an innovative leader in our industry,” said Rite Aid CEO Heyward Donigan. While that all sounds great, it’s a good idea to sell if you’re long because the good news won’t last. ![]() Also, the company expects sales sales of between $21.5 billion and $21.9 billion for 2020, as compared to estimates calling for $21.64 billion. It now sees fiscal 2020 EPS of between 13 cents to 55 cents, compared to five-cent estimates. Also contributing to these numbers, 2.3 million flu shots were given by the end of the quarter - more than the entire previous year.įurthermore, RAD even raised guidance. “It’s worth noting that Thrifty Ice Cream, which we recently expanded to 900 additional stores, was a meaningful contributor to our third-quarter growth,” said James Peters, Rite Aid’s chief operating officer. Thanks to short covering - which cost short-sellers as much as $187 million - and an earnings shock, Rite Aid exploded. Instead, RAD gave them 54 cents a share on sales of $5.5 billion. It proved just that after gaining nearly 170% since mid-December to a high of $23.88 in recent weeks All thanks to blowout earnings that crushed estimates.Īnalysts were only expecting adjusted earnings per share (EPS) of 10 cents a share on $5.4 billion. ![]() Still, even with mounting debt, heavy competition from the likes of CVS Health (NYSE: CVS) and Walgreens Boots Alliance (NASDAQ: WBA) and failed mergers, Rite Aid stock proved its an underdog that just refuses to die. Shortly after, RAD would dip another 26% to a low of $7.52 - proof it was worth avoiding.
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