|Bid||8.27 x 800|
|Ask||8.29 x 900|
|Day's Range||8.11 - 8.47|
|52 Week Range||5.04 - 21.00|
|Beta (3Y Monthly)||1.68|
|PE Ratio (TTM)||N/A|
|Earnings Date||Dec 19, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||6.25|
New government data show that total health care spending in 2018 spiked 4.6%. That's a lot higher than income growth, which was just 3% in 2018. The reason: More Americans are foregoing health coverage, leading to a rise in health care spending nationwide.
Rising health costs have become a burden for many Americans, but many people still may be unaware of one benefit they get, the health savings account. Personal finance expert Jean Chatzky joins Yahoo Finance to discuss the benefits of HSAs.
This GivingTuesday, The Rite Aid Foundation is spreading gratitude across the nation by awarding nearly $2.1 million to partner charities through its Full of Thanks Holiday Program.
Rite Aid Corporation (RAD) said today that it will release financial results for its Fiscal 2020 Third Quarter, which ended Nov. 30, 2019, on Thursday, Dec. 19, 2019. The company will hold an analyst call at 8:30 a.m. Eastern Time with remarks by Rite Aid's management team. The telephone replay will be available beginning at 12 p.m. Eastern Time on Thursday, Dec. 19, 2019 and ending at 11:59 p.m. Eastern Time on, Dec. 21, 2019.
The ratings on the seven principal and interest (P&I) classes were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), are within acceptable ranges. Moody's rating action reflects a base expected loss of 2.3% of the current pooled balance, compared to 2.9% at Moody's last review. Moody's base expected loss plus realized losses is now 2.0% of the original pooled balance, compared to 2.7% at the last review.
Moody's rating action reflects a base expected loss of 21.8% of the current pooled balance, compared to 19.8.% at Moody's last review. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating.
Rite Aid Corporation today announced the results and anticipated settlement of its previously announced cash tender offers to purchase up to $100 million aggregate principal amount of its outstanding 7.70% Senior Notes due 2027 and 6.875% Senior Notes due 2028 .
Rite Aid (NYSE:RAD) has been a slow-motion train wreck for years. Since its highs of $173 in early 2017 to its less than stellar lows of $5.50, investors have left RAD stock for dead.Source: NYCStock / Shutterstock.com And, it's all thanks to heavy competition that sent revenue streams plummeting, taking with it margins and profits with a debt-heavy balance sheet to boot. While the stores have a partnership in place with Amazon (NASDAQ:AMZN), even that won't save the stock.Granted, Rite Aid stock has shown some signs of life in recent weeks, rallying just above $10. It even just broke above double-top resistance, and pushed above its 200-day moving average. Unfortunately, as technically attractive as that may appear, it's only a temporary reprieve.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFundamentally, RAD stock is still struggling -- with no signs of improvement. Compounding the issue, management has no clear way to fix the situation. Therefore, the RAD stock price has no clear catalyst to push it higher and keep it there.In my opinion, investors would be smart to avoid Rite Aid stock altogether. Deciphering the Writing on the WallTo be sure, new CEO Heyward Donigan, the company is taking steps to return to profitability. "I see tremendous opportunity to revitalize the company's position as a leader in meeting the health and wellness needs of customers and patients through our store and pharmacy benefit management platforms," Donigan stated at the time of her hiring in August. * 7 Earnings Losers That Were Hit Hard This Season She told participant on the company's September 2019 conference call Rite Aid is ripe for a turnaround, as it "… needs a clear new strategic vision and a pathway to execution that drives future organic growth and profitability."As for trends in the industry, RAD stores have joined rivals CVS Health (NYSE:CVS) and Walgreens Boots Alliance (NASDAQ:WBA) carrying cannabis-derivative products made with the increasingly popular cannabinoid known as cannabidiol (CBD). In the cannabis space more broadly, there are at least 23 industries looking to capitalize on the growing legalization of marijuana, according to AgFunder News. Those sales could offset or top what Rite Aid gave up earlier this year when it announced it would no longer sell electronic cigarettes amid what then called an "epidemic" of teen vaping; in retrospect, they were ahead of the news.Source: Statista.comWhile she mentioned that health insurance plans could be key to a turnaround, we have to consider management is struggling under the weight of monster debt of more than $3.5 billion. To be honest, unless something miraculous happens, RAD stock is a dud. * 7 Under-the-Radar Retail Stocks to Buy Now "You have a debt-burdened specialty retailer that was slow to pivot to e-commerce disruption, meaning bigger peers have passed the company up and consumers have mostly abandoned stores. Now, because Rite Aid's cash flows are constrained and have to go toward paying off debt, the company doesn't have the necessary firepower to make this pivot and compete," Investorplace contributor Luke Lango wrote last month. Bottom Line on Rite Aid StockRAD stock is banking on a turnaround underdog story with a new CEO at the helm. Unfortunately, with heavy debt burdens, poor management, and no real plan to move the needle, I would avoid RAD stock like the plague. The writing is on the wall here. While the stock could move higher on hope short-term, the long-term story is not good. You can find better investment opportunities elsewhere. For me, Rite Aid is a dud.As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post Even With New CEO, Debt-Laden Rite Aid Stock is Best Avoided for Near Term appeared first on InvestorPlace.
Back in mid-July, I wrote on InvestorPlace that it looked like shares of beaten up pharmacy retailer CVS (NYSE:CVS) were ready to breakout higher. The headwinds, which had plunged shares into dirt-cheap territory, were going to ease going forward, meaning that there was no reason for the dirt-cheap valuation to stick around.Source: Shutterstock Fast forward four months. CVS stock has risen 25% -- to the S&P 500's 3% gain over that same stretch -- thanks to exactly that. Headwinds have eased and have been replaced by tailwinds. The numbers and narrative have improved. Investors are realizing CVS stock shouldn't be this cheap. So they are gobbling up shares in bulk, and CVS stock is flying higher.The most recent update here is that CVS reported very strong third quarter numbers in early November that were much better-than-expected on all fronts. All of the businesses are growing, profitability is improving, and the balance sheet is being cleaned up. The outlook is also getting brighter.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Sell Before They Roll Over The implication from this earnings report is that at just 10-times forward earnings, CVS stock isn't priced for the company to be on such a roll. This discrepancy means that CVS stock should continue to outperform for the foreseeable future. CVS Is Marching HigherIf the third quarter print confirmed anything, it is that CVS is on a roll thanks to new growth initiatives.Taking a step back, the big picture here is that CVS is a specialty pharmacy retailer that once co-existed with the likes of Walgreens (NASDAQ:WBA), Rite Aid (NYSE:RAD), and others in the specialty pharmacy world. Then, more players moved more aggressively into the space, including Amazon (NASDAQ:AMZN), Walmart (NYSE:WMT), Target (NYSE:TGT), and a slew of online pharmacies. This competition surge created traffic and margin headwinds for CVS, and CVS revenues, profits, and stock price have consequently all sunk over the past few years.The writing was on the wall. CVS needed to differentiate itself in order to survive the competition surge in the specialty pharmacy retail world.That's exactly what they did, and the Q3 numbers imply that these new initiatives are working. CVS acquired Aetna, and has since leveraged that acquisition to launch HealthHUB concept stores, which are focused on personalized and localized healthcare services. These HealthHUB stores performed exceptionally well in Q3.At the same time, CVS has doubled down on MinuteClinic services, and success of these services is a key reason why the company's retail business continues to tick higher. New programs like Maintenance Choice are driving materially positive revenue and profit gains in the pharmacy segment as well.The whole CVS growth narrative is perking up thanks to new growth initiatives, which have successfully differentiated CVS from the pack in the specialty pharma retail world. Importantly, this differentiation paves the path for the CVS growth trajectory to continue to improve over the next few years. Shares Remain Unreasonably CheapGiven that the CVS growth trajectory projects to keep improving thanks to successful differentiation, CVS stock is unreasonably cheap at current levels.Just look at the multiples: * Forward P/E: 10 * 5-Year average forward P/E: 13 * Sector average forward P/E: 14 * Market average forward P/E: 17 * Consumer discretionary sector average forward P/E: 21In other words, relative to its historical self, CVS stock is trading at a 20%-plus discount today. Relative to peer stocks across various other industries, the stock is trading a discount of anywhere between 30% and 50%.That's just too cheap for CVS stock. At one point in time, this discount was warranted given the bleak growth prospects. But, the growth prospects today are starting to perk up thanks to successful differentiation of the business model through HealthHub, MinuteClinics, Maintenance Choice, and more. The balance sheet is also being deleveraged, so there remains little reason why shares should be so cheap.The implication? Shares won't remain this cheap for long. So long as CVS stays on a roll, the multiple underlying CVS stock will continue to expand, and this consistent expansion will keep CVS stock on a healthy uptrend. Bottom Line on CVS StockI loved CVS stock back in July when it was down around $50. I still like CVS stock up here around $70. Shares remain too cheap given the company's improving growth prospects. This favorable discrepancy will keep CVS stock on a solid uptrend for the foreseeable future.As of this writing, Luke Lango was long CVS and WMT. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post Stick With the Rally in CVS Stock appeared first on InvestorPlace.
A growing number of skeptics are casting doubt on the financial case for taking Walgreens Boots Alliance private in a debt-financed buyout.
Real Estate Roundup is a weekly rundown of developments in the world of industrial real estate used for logistics and transportation. This week: a gas station chain scouts sites; Rite Aid unloads facilities; is micro-fulfillment a way to cut costs? Casey's General Stores, one of the largest convenience store and gas station chains in the Midwest, is running out of room at its two distribution centers and is scouting sites for a new facility.
Rite Aid Corporation (RAD) (“Rite Aid” or the “Company”) today announced that it has increased the offer price and extended the early tender premium for its previously announced cash tender offers (the “Tender Offers”) to purchase up to $100 million aggregate principal amount of its outstanding 7.70% Senior Notes due 2027 (“2027 Notes”) and 6.875% Senior Notes due 2028 (the “2028 Notes” and together with the 2027 Notes, the “Notes”). Under the new terms of the Tender Offers, (i) the Total Consideration for each series of Notes has been increased to $667.50 in cash per $1,000 principal amount of Notes, as set forth in the table below, and (ii) the payment of the Early Tender Premium has been extended to 11:59 p.m., New York City time, on November 12, 2019. Accordingly, the Early Tender Time and the Expiration Time for the Tender Offers will now be the same.
Amazon.com Inc. said Wednesday that it has expanded its Counter third-party package pickup service to thousands of new stores. Counter was launched in June at more than 100 Rite Aid Corp. stores. Now it has been added to GNC , Health Mart and Stage Stores . Counter allows customers using same-day, next-day, two-day and standard shipping to go to a brick-and-mortar retailer to retrieve an order. Amazon stock is up 17.3% for the year to date while the S&P 500 index is up nearly 20%.
The rating for this CTL lease transaction Class A-2 was downgraded primarily due to the downgrade of Rite Aid Corporation senior unsecured notes to Caa3 from Caa2. On October 18, 2019 Rite Aid Corporation guaranteed senior unsecured notes were downgraded to Caa2 from Caa1 and senior unsecured notes were downgraded to Caa3 from Caa2. The ratings of Credit Tenant Lease (CTL) deals are primarily based on the senior unsecured debt rating (or the corporate family rating) of the tenants leasing the real estate collateral supporting the bonds.
Moody's Investors Service ("Moody's") today stated that if the tender offer announced by Rite Aid Corporation on 15 October 2019 proceeds as outlined, it will constitute a distressed exchange, which is an event of default under Moody's definition of default. The Company announced that it recently completed a privately negotiated purchase from a noteholder and its affiliated funds of $84.1 million aggregate principal amount of its senior unsecured notes maturing 2027 and 2028 at 61% of par. The company also announced that it has commenced cash tender offers to purchase up to $100 million aggregate principal amount of its senior unsecured notes due 2027 and 2028.
Sanofi announced Friday a recall of over-the-counter heartburn medication Zantac in the U.S. and Canada, because of possible contamination with N-nitrosodimethylamine (NDMA), which is believed to cause cancer. The U.S.-listed stock fell 0.9% in morning trading. Sanofi said it was working with health authorities to determine the level and extent of the recall. The recall comes less nearly three weeks after CVS Health Corp. , Walgreens Boots Alliance Inc. and Rite Aid Corp. said they were pulling Zantac from their drugstores' shelves following a Food and Drug Administration warning that the the product could contain low levels of NDMA. "Evaluations are ongoing on both drug substance (active ingredient) and finished drug product," Sanofi said Friday in a statement. "Due to inconsistencies in preliminary test results of the active ingredient used in the U.S. and Canadian products, Sanofi has made the decision to conduct the voluntary recall in the U.S. and Canada as the investigation continues." Sanofi's shares have gained 6.2% year to date, while the SPDR S&P Pharmaceuticals ETF has gained 2.0% and the S&P 500 has climbed 19.5%
Rite Aid Corporation (RAD) (“Rite Aid” or the “Company”) today announced that it has commenced cash tender offers (the “Tender Offers”) to purchase up to $100 million aggregate principal amount of its outstanding 7.70% Senior Notes due 2027 (“2027 Notes”) and 6.875% Senior Notes due 2028 (the “2028 Notes” and together with the 2027 Notes, the “Notes”). The Tender Offers support the Company’s objective to reduce its total indebtedness while managing its liquidity and interest expense.