Should I Liquidate My Rite Aid Shares?

Rite Aid has filed for Chapter 11 bankruptcy, leaving shareholders without recovery. The company can only sell up to 12.6 million shares without shareholder approval to increase the number of authorized shares. Rite Aid stock has been upgraded to a Zacks Rank 2 (Buy) due to growing optimism about the company’s earnings prospects. The company is now starting to transfer ownership of stores to Walgreens and has added Apple Pay as a payment option for online purchases.

Rite Aid Corp. shares rose 21.4 in Tuesday trading after reporting a surprise third-quarter adjusted profit and dozens of store announcements. However, Deutsche Bank slashed its target price to $1 from $16 last week, causing Rite Aid stock to plunge nearly 61 over the past year. At minimum, Rite Aid is worth $14.40, with a premium of $20 a share. This red line on the chart signals increased risk, but it doesn’t necessarily mean it’s time to sell.

Rite Aid stock has received a consensus rating of sell, with an average rating score of 0 buy ratings. The company holds several negative signals and should be a sell candidate, but due to the 90-day investment horizon and highly speculative risk level, our recommendation is “Not Rated”. These indicators suggest that Rite Aid might be a potential value trap, and shareholders can generally sell their Rite Aid stock anytime the stock market is open. The fundamental reasonings it might be selling include earnings, guidance, poor management, and competitors.

What will happen to Rite Aid shareholders?

Rite Aid is pursuing a Chapter 11 bankruptcy plan to liquidate its shares.

What is the Rite Aid scandal?

Rite Aid, founded in 1962 as Thrift D Discount Center, faced an accounting scandal in 1999 when it began restating earnings due to accounting irregularities. Six former Rite Aid senior executives were convicted of conspiracy in 2003 for accounting fraud and false filings with the SEC. The company changed its name to Rite Aid Corporation in 1968 and moved its stock to the New York Stock Exchange in 1970.

Rite Aid’s growth was marked by acquisitions like Envision Pharmaceutical Services in 2015 and two merger deals with Walgreens and Albertsons. Former Rite Aid executives admitted to overstating net income between 1997 and 2000.

Is Rite Aid being bought out?

In 2017, Walgreens announced the cancellation of its merger with Rite Aid, offering to purchase 2, 186 stores for $5. 18 billion, plus a $325 million cancellation penalty. A revised deal was made, with Walgreens purchasing 1, 932 locations for $4. 38 billion, approved by the FTC on September 19. The revised sale was completed in March 2018, leaving Rite Aid with around 2, 600 remaining stores. Three distribution centers and related inventory were transferred, and most stores were rebranded as Walgreens.

In February 2018, Albertsons announced plans to acquire the remainder of Rite Aid in a merger of equals, but the plan failed to please shareholders and was cancelled on August 8, 2018. In October 2020, Rite Aid announced the acquisition of Bartell Drugs, a Seattle-area chain, for $95 million, which faced criticism from customers due to staff turnover and computer system glitches.

Is Rite Aid losing money?

Rite Aid, a US pharmacy chain, has reported a $307 million loss between March and May 2023, and a loss of about $3 billion over the past six years. The company, which employed over 6, 100 pharmacists and operated 2, 100 retail pharmacy locations across 17 states, plans to close 154 stores nationwide. It now operates around 1, 416 stores in 16 states. Rite Aid also sold off some of its businesses, including its Elixir Solutions business, to MedImpact Healthcare Systems for $577 million in February. The company’s bankruptcy court documents indicate a significant reduction in its footprint.

What is the price prediction for RITES stock?

The RITES price target is set at 369. 17 INR, with a maximum estimate of 407. 50 INR and a minimum estimate of 319. 00 INR. Analysts suggest monitoring the stock price chart and staying updated with RITES news and market news. This information is not a recommendation for personal investment, and should be considered as a first-look approach. The overall rating is neutral, and personal analysis is still required. The data is not a trading advice, and it is important to consider all perspectives before making any decisions.

What is the future price of Rite Aid stock?

Rite Aid, a drugstore chain, offers prescription medications, over-the-counter drugs, and health and wellness products. The company is reshaping the modern pharmacy by catering to customer demands through convenient channels like retail and delivery pharmacy services. Rite Aid’s wholly-owned subsidiaries, Elixir, Bartell Drugs, and Health Dialog, provide pharmacy benefits and services, including accredited mail and specialty pharmacies, prescription discount programs, and an advanced adjudication platform.

These components provide exceptional member experiences and substantial cost savings. Health Dialog offers healthcare coaching and disease management services through interactive live online sessions and phone-based health services.

Is Rite Aid a good investment?

The Rite Aid Corporation exhibits several favorable indicators, yet it is not a recommended purchase at this time. It would be prudent to consider this a hold candidate for further development. As of January 12, 2024, the current price per share of Rite Aid Corporation was $0. 648. As of the date in question, the company’s stock is not yet a buy candidate.

Is Rite Aid stock a buy or sell?

Rite Aid Corporation’s stock is currently experiencing mixed signals, with sell signals from both short and long-term Moving Averages, indicating a more negative forecast. The long-term average is above the short-term average, and resistance is expected at $0. 0021 and $0. 0128. A break-up above these levels will trigger buy signals. Volume fell without any changes, potentially causing an early warning and a possible “turning point”. Low volume increases risk and reduces other technical signals.

A buy signal was issued from a pivot bottom point on August 30, 2024, and the price has fallen -94. 75 so far. A buy signal from the 3 month Moving Average Convergence Divergence (MACD) was also issued. A buy signal from a double bottom formation was found on August 15, 2024, and the price is expected to rise by 2, 136. 51 to $0. 0470 within three trading days. There is no support from accumulated volume below today’s level, and the stock may perform poorly in the next few days.

What is the outlook for Rite Aid?

Rite Aid reported a decrease in prescription volume from 125 million in 2024 to 142 million in 2029. The company also projected a gradual decline in its retail prescription gross margin from 19. 6 in 2024 to 19. 2 by 2029. This is compared to other retail pharmacies, but slightly lower than brand-name prescriptions. The company aims to grow its business while following Steve Martin’s advice of getting small. The strategic “how” behind these projections remains unclear.

Why is Rite Aid stock dropping?

Rite Aid has filed for bankruptcy, indicating its intention to close additional stores and appoint a new chief executive officer as part of a restructuring plan.

Can I sell my Rite Aid stock?

It is possible for shareholders to sell their Rite Aid (RADcQ) stock at any time during which the stock market is open. The price at which this occurs is determined by the availability of both the buyer and the seller.