|Bid||12.16 x 800|
|Ask||12.35 x 800|
|Day's Range||12.16 - 12.79|
|52 Week Range||5.04 - 23.88|
|Beta (5Y Monthly)||1.94|
|PE Ratio (TTM)||N/A|
|Earnings Date||Dec 18, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Oct 13, 1999|
|1y Target Est||7.63|
Moody's Investors Service, ("Moody's") today assigned a Caa1 rating to Rite Aid Corporation's ("Rite Aid") new senior secured notes. There is no change in the company's SGL-3 speculative grade liquidity rating. "The exchange transaction will improve Rite Aid's debt maturity profile but operational challenges remain", Moody's Vice President Mickey Chadha stated.
The rating on the principal only class, Cl. A-PO, was affirmed due to the sufficiency of the class's credit support and the pool's share of defeasance. The rating on the IO class, Cl. IO, was downgraded due to the decline in the credit quality of its reference classes resulting from principal paydowns of higher quality reference classes. 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.
The Rite Aid Foundation welcomed 481 nonprofits to its 2020 KidCents class – it’s largest ever – and awarded more than $2.4 million in grants.
The Zacks Analyst Blog Highlights: Forterra, Rite Aid, Everi, Focus Financial and Performance Food
Rite Aid Corporation (NYSE: RAD) ("Rite Aid" or the "Company") today announced the early results of its previously announced offer to exchange (the "Exchange Offer") up to $600 million aggregate principal amount (the "Maximum Amount") of its outstanding 6.125% Senior Notes due 2023 (the "Old Notes") for newly issued 7.500% Senior Secured Notes due 2025 (the "New Notes"), upon the terms and subject to the conditions set forth in the offering memorandum dated January 6, 2020 (the "Offering Memorandum"). The purpose of the Exchange Offer is to improve the Company’s maturity profile by extending the maturity date of a portion of the Old Notes from April 2023 to July 2025.
Rite Aid's (RAD) sound fundamentals and strategic endeavors might help it retain its bull run in 2020. Wellness remodels, the expansion of EnvisionRxOptions and innovative products are keys to growth.
Retailers have been benefiting from their concerted endeavors in product innovation, introduction of new styles, merchandise replenishment and store refurbishments.
Rite Aid Corporation (NYSE: RAD) ("Rite Aid" or the "Company") today announced that it has commenced an offer to exchange (the "Exchange Offer") up to $600 million aggregate principal amount (the "Maximum Amount") of its outstanding 6.125% Senior Notes due 2023 (the "Old Notes") for newly issued 7.500% Senior Secured Notes due 2025 (the "New Notes"), upon the terms and subject to the conditions set forth in the offering memorandum dated January 6, 2020 (the "Offering Memorandum"). The purpose of the Exchange Offer is to improve the Company’s maturity profile by extending the maturity date of a portion of the Old Notes from April 2023 to July 2025.
Shares of struggling pharmacy retailer Rite Aid (NYSE:RAD) staged a huge rally in late 2019 on the heels of a strong third -quarter earnings report. The results indicated that the turnaround plan of the company's new management is off to a good start. In less than five trading days after the results were released, RAD stock nearly tripled, soaring from $8 to over $20.Source: Michael Gordon / Shutterstock.com I don't believe that investors should be fooled by the huge rally of Rite Aid stock. Indeed, RAD stock has already tumbled to about $13.50. But I think it will drop much further.Sure, the outlook of Rite Aid stock has improved. Its new management is doing all the right things to stabilize the company's sales and margin trends and give it a shot at sustainable profitability in the long run.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut things weren't good enough to justify a 200% rally in a few days. This company is still the worst-in-class retailer in a tough pharmacy segment. The Q3 results indicated that the company may actually survive. But its turnaround will be slow and weak.So I believe that the big spike of RAD stock in late 2019 is unsustainable. It was just a head fake, as momentum shorts who were piling on the stock and betting on bankruptcy were forced to cover as the bankruptcy thesis was thrown out the window. This short covering will eventually subside. As it does, the buying power which had pushed Rite Aid stock up above $20 will also weaken, pushing the shares down. * 9 Boring Stocks to Buy You Should Never Let Go Of RAD stock won't stop dropping until its valuation matches the reality that Rite Aid is a low-growth company with limited ability to increase its profits. Unfortunately, that won't happen until RAD stock features an $11 price tag. As a result, the shares will likely keep dropping before they find support. Rite Aid's Fundamentals Are ImprovingRite Aid's fundamentals are definitely meaningfully improving, as its new management is charting a course that will enable it to avoid bankruptcy and stay alive for a little while longer.In 2019, Rite Aid put in place a new management team. This new management team is trying to change the company from head to toe. That's a good thing. Rite Aid could use change everywhere because the last few years have been defined by negative revenue growth, margin erosion, and a consistent slide into irrelevancy.Management's changes have included revamping stores, overhauling the company's digital operations, expanding its omnichannel capabilities, improving its pharmacist-client relations, and expanding its in-store-pickup partnership with Amazon (NASDAQ:AMZN). These changes are working. In Q3, its revenues rose over 0.2% year-over-year, while its EBITDA, excluding some items, rose $15 million. Those were its biggest revenue and EBITDA increases in several quarters.Management is in stage one of its planned turnaround. Consequently, as RAD's top executives continue to effect change throughout the entire company over the next several years, the company's revenue and profit trends should continue to improve. But Not By That MuchWhile Rite Aid's fundamentals are improving, they aren't improving by that much.Its revenue growth trends are improving, thanks to management's comprehensive changes. But there are two catches. The first catch is that Rite Aid is playing catch-up in a very tough and competitive pharmacy segment that includes much bigger, deeper-pocketed, and more resourceful competitors like Walgreens (NASDAQ:WBA), CVS (NYSE:CVS), Walmart (NYSE:WMT), Target (NYSE:TGT), and Amazon.Rite Aid may be able to survive in that competitive environment. But, it will never thrive, especially because consumers are increasingly pivoting towards all-in-one shopping destinations like Walmart and Target. Thus, while RAD's revenue growth trends will improve, its revenue growth will forever remain very low.The second catch is that all of this change requires investments. A better e-commerce site requires more expensive developers. Remodeling stores costs lots of money. So, while RAD's management is taking all the necessary steps to stabilize its sales, all of those steps are expensive. Indeed, in Q4, RAD's expenses are expected to increase at the fastest rate in several years.So Rite Aid's fundamentals are improving, but its revenue growth rates will remain sluggish and rising expenses may keep its margins stuck in neutral. Rite Aid Stock Is OvervaluedA realistic assessment of Rite Aid's turnaround potential reveals that RAD stock is overvalued at its current levels.Analysts, on average, expect Rite Aid's revenue to climb just over 2% in Q4. Importantly, in Q4 of 2018, RAD's revenue fell. Going forward, Rite Aid's revenue comparisons will get tougher, as the company's revenue rose in 2019 versus 2018.These tougher comparisons, coupled with a fiercely competitive landscape, will keep the company's revenue growth rates stuck in the 0.5% to 1% range over the next few years.At the same time, Rite Aid's operating expenses, which have been shrinking, will start rising again because management's proposed changes require higher spending. Over the next few years, Rite Aid will likely combine 0.5% to 1% revenue growth with roughly 0.5% spending increases.If that's the case, then Rite Aid will be a slower revenue grower with some, but not a lot, of room for profit margin expansion. My modeling suggests that this combination will push its earnings per share towards $1 by 2025. Using a 2025 price-earnings multiple of 16 times earnings, which is average for the market, I arrive at a 2024 price target for RAD stock of $16. Discounted back by 10% per year, that equates to a 2020 price target of just under $11. The Bottom Line on RAD StockRite Aid is in the early stages of a turnaround. But its weak turnaround is moving slowly. During its huge rally, Rite Aid stock was trading as if it was in the midst of a quick, strong turnaround. That mismatch was the result of short covering.Unfortunately for bulls, that means Rite Aid stock will keep dropping before it finds support.As of this writing, Luke Lango was long WMT. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy to Kick Off the New Year * 7 Buyout Targets to Watch For 2020 * 9 Boring Stocks to Buy You Should Never Let Go Of The post Don't Be Fooled by the Big Spike of Rite Aid Stock appeared first on InvestorPlace.
Beaten-down pharmacy chains could offer profitable turnaround plays in 2020, completing long-term bottoms and entering new uptrends. For example, CVS Health Corporation (CVS) also owns health care giant Aetna, increasing risk from Democratic hopefuls who want to replace America's private health care system with Medicare-for-All. The pharmacy group showed signs of life in the second half of 2019, driven by a variety of positive factors that included speculation about private equity buyouts.
The key question facing U.S. stocks at the moment is: how much is left? The bull market almost certainly will enter its twelfth year in March (though by some measures, it ended, however briefly, in December 2018). The S&P 500 rose 29% in 2019 alone; the NASDAQ Composite performed even better. Equities are at all-time highs, and valuation multiples seem much the same.Source: Shutterstock Friday's big stock charts focus on three stocks for which the key question is similar to that of the market as a whole. These aren't necessarily stocks that have led, or in two cases even joined, the broader rally. But all three closed 2019 on a high note and in an uptrend. * 10 2019 Winners That Will Be 2020 Losers As a result, for these names investors can wonder how much of a rally remains. In all three cases, near-term trading could set the tone for the remainder of 2020. And in all three cases, these big stock charts suggest at least some reason for caution.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Procter & Gamble (PG)Source: Provided by Finviz Procter & Gamble (NYSE:PG) was one of the most impressive stocks of 2019. The 36% rise in PG stock perhaps doesn't seem that spectacular relative to the 29% increase in the S&P 500 or even the 22% gain for the Dow Jones Industrial Average, of which PG is a component. But in context, the move is close to extraordinary.After all, PG is a mega-cap and defensive name. Both characteristics suggest the stock should underperform in a bull market. CPG (consumer packaged goods) stocks as a whole posted smaller returns than the market, yet P&G stock outperformed pretty much every peer. At the same time, the stock managed to reverse a long-stagnant trend: shares gained less than 1% total in the previous four years.With all that backward-looking good news, however, the first of Friday's stock charts suggests a more muted view looking forward: * PG stock simply has stalled out. Resistance held at $125 in September and October, while a move above those levels last month quickly faded. Shares now are challenging the support line of the multi-month uptrend, and the 50-day moving average after falling through the 20DMA. This looks like a stock ready to roll over, with the next level of support at $120 followed by the 200-day around $115. * Fundamentally, there's a case for a modest decline as well. After a decade marked by cost-cutting, reorganization, and divestitures, P&G found the recipe for growth in fiscal 2019 (ending June). But there's simply not much left in the way of catalysts. This now is a company likely to post mid-single-digit net profit growth whose stock trades at 25x the FY20 consensus earnings per share estimate. That's a potentially dicey combination, particularly given that historically PG received at most a P/E multiple in the low 20s. * With third quarter earnings due toward the end of this month, there is a potential downside catalyst if results disappoint. Rival Unilever (NYSE:UL,NYSE:UN) delivered a warning on demand in key regions last month. P&G's own second quarter report in late October was not well-received. * It's possible the market, as it has in recent years, keeps bidding up names it views as quality. But there's a strong case that at the least, the performance of PG stock this year will be much less impressive than it was in 2019. Walgreens Boots Alliance (WBA)Source: Provided by Finviz Walgreens Boots Alliance (NASDAQ:WBA) seems to have found its footing. Shares have bounced about 20% since hitting a six-year low in late August. A cheap valuation, takeover speculation and better results across the sector have contributed.The question looking to 2020 is if the uptrend can hold. Both the second of our big stock charts and fundamental analysis suggest that it should: * The technical picture still looks reasonably solid after the rally over the past two weeks. WBA stock saw a "golden cross" in November, as the 50DMA crossed above the 200DMA. That pattern didn't have much of an immediate effect, as shares kept falling. But with a bottom seemingly in, and WBA riding the 50-day in recent sessions, the longer-term uptrend seems confirmed at the moment. * Fundamentally, WBA is one of the Dow Jones' cheapest stocks, at less than 10x forward earnings. Rivals Rite Aid (NYSE:RAD) and CVS Health (NYSE:CVS) have shown signs of life after their recent earnings reports, with leveraged RAD stock in particular soaring. Walgreens earnings on Wednesday look like a potential catalyst. * That earnings report, however, presents a risk on both fronts. A sell-off next week would breach the uptrend established since late August. Shares probably would need to rely on the 200DMA for support. And with rivals doing better, a weak report might suggest that Walgreens has execution issues in addition to the margin and sales problems that have pressured the industry in recent years. * I wrote this week that Walgreens was one of the 2019's losers that likely would be a winner in 2020. I still believe that will be the case. But for that to happen, Walgreens earnings next week need to set a bullish tone. Harley-Davidson (HOG)Source: Provided by Finviz Harley-Davidson (NYSE:HOG) managed to put in a bottom in late August. An eight-year low proved the nadir of an inverse head-and-shoulders pattern, and a gap up after third quarter earnings allowed the stock to re-test resistance above $40.Since that test failed, however, HOG stock has struggled. And the third of Friday's big stock charts suggests more downside ahead: * Shares have exited out of an uptrend established from August lows (which actually is a slightly narrowing ascending wedge). They've breached the 50-day moving average as well after a golden cross formed in early November. The 200-day moving average at $36 is the next key level. Below $36, support looks limited, and there's a technical argument for a potentially severe sell-off. * Click to Enlarge Source: Provided by Finviz Looking to the monthly chart, the broader trend becomes apparent. And the rally of late looks like an almost parabolic move against that primary trend -- a move that usually reverses. For now, the gains in recent months look more like a "dead cat bounce" than a sustainable reversal. * Fundamentally, HOG stock looks worrisome as well. Shares are cheap at less than 11x next year's consensus EPS estimate. Progress on the trade war front should help the company. But profits are heading in the wrong direction, and rival Polaris Industries (NYSE:PII) is taking share with its Indian Motorcycles nameplate. Demographics hardly seem to favor Harley-Davidson, either. Both the fundamentals and the third of our big stock charts make HOG stock look more like a value trap than a value play. That in turn suggests investors should look elsewhere for returns in 2020.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 2019 Winners That Will Be 2020 Losers * 5-Year Returns for 5 Dow Jones Stocks Entering 2020 * 5 Semiconductor Stocks to Buy for Big Gains In 2020 The post 3 Big Stock Charts for Friday: P&G, Walgreens, and Harley-Davidson appeared first on InvestorPlace.
The slide comes after more than a week of big gains for Rite Aid's stock, which more than doubled in value after the pharmacy chain reported a hefty quarterly earnings beat on Dec. 19.
It wasn’t just cough and cold season that drove Rite Aid Corp.’s better-than-expected fiscal third-quarter earnings beat. “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, on the earnings call, according to a FactSet transcript. Thrifty Ice Cream is a nearly 80-year-old California brand that Rite Aid acquired in 1996.
The buying stampede for Rite Aid stock continued on Friday, more than a week after the drugstore chain's third-quarter earnings sparked an epic run.
(Bloomberg) -- Rite Aid Corp. short-sellers have had a tough December as better-than-expected earnings spurred the stock’s largest monthly gain since April 2009.With Rite Aid’s heavily shorted stock up 138% this month, their mark-to-market loss amounts to $187 million, according to data provided by S3 Partners research head Ihor Dusaniwsky. The shares were up as much as much as 24% on Friday, extending gains for a seventh session.Things could get worse for Rite Aid bears if the earnings-fueled rally turns into a long-term advance rather than just a brief surge driven by short-sellers unwinding their bearish bets, Dusaniwsky warned.“If RAD’s stock price continue its rally or its price stabilizes at these levels I would expect a dramatic short squeeze next week as shorts have been hit with both large mark-to-market losses and expensive stock borrow costs,” he said in an email.The surprise rally has spooked some bears already as Ride Aid’s short interest has declined to 26% of the free-floating shares, after peaking at 32% in mid-October, S3 data show.The next catalyst for the stock is company’s investor day in March.To contact the reporter on this story: Tatiana Darie in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Richard Richtmyer, Bailey LipschultzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
It’s a nice year-end gift for its investors, and it takes the stock to its highest levels in over a year—but the pharmacy chain’s long-term picture remains ugly.
Apple, Boeing and Amazon climbed Friday as the Dow Jones today seized another new high and the S&P; 500 eyed a 22-year record.