What Happened To The Stock Of Rite Aid Today?

Rite Aid Corp. shares rose 21.4 in Tuesday trading after the pharmacy retailer reported a surprise third-quarter adjusted profit and announced dozens of store closures. The net loss totaled $36.1 million, or 67 cents per share, after net income of $4.3 million, or 8 cents per share, last year. McKesson Corp (MCK) has threatened to terminate supplying Rite Aid with drugs (docket 19), with approximately $1.9 billion NOLs being protected. Additional stores will be closed.

Rite Aid Corp. has been cleared to exit bankruptcy after winning court approval on a restructuring plan that is poised to save the ailing pharmacy chain from bankruptcy. The decline came after the pharmacy chain announced its second-quarter earnings results before the market. The Philadelphia-based chain sank 51 on Friday, setting a new all-time low of $0.71 a share. Shares of Rite Aid (RAD) are down more than 91 since this time last.

Rite Aid’s stock is up more than 30 on Wednesday, on pace for its biggest one-day percentage gain since December 2019. Shares were up nearly 70 on the day. The company has been marked as potentially delisted and may not be actively trading. Rite Aid filed for Chapter 11 Bankruptcy in late 2023, but the brand is attempting to salvage its business.

Rite Aid’s stock price went down -10 following the earnings report, and the company has been marked as potentially delisted and may not be actively trading. Rite Aid shareholders are being wiped out and get no recovery. The shares and other Rite Aid securities will be cancelled on the plan effective date.

What happens to Rite Aid stock holders?

The existing equity interests held by Rite Aid will be cancelled and extinguished, and the holders of these shares will not receive any recovery due to the effective date of the plan.

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.

Why was Rite Aid delisted?

Rite Aid has announced that its common shares will continue to be listed and traded on the NYSE during cure periods. If the NYSE does not accept the market-cap cure plan or the company fails to attain a minimum $1 share price over the required period, the exchange will suspend Rite Aid’s shares from trading and delist them. The company is currently reviewing strategic alternatives to recapitalize, refinance, or optimize its capital structure, which may lead to significant corporate transactions or remedial measures. Rite Aid cannot provide assurances that it will regain compliance with the NYSE’s continued listing standards or maintain its listing on the NYSE or the results of the ongoing review.

Why is Rite Aid in trouble?

Rite Aid has filed for Chapter 11 bankruptcy protection, citing a challenging environment for drug stores, a runner-up status to larger chains, and expensive legal battles for allegedly filling unlawful opioid prescriptions. The bankruptcy was not a surprise, as Rite Aid’s bigger rivals, CVS and Walgreens, are also facing similar problems, closing stores, and Amazon and big-box chains like Walmart, Target, and Costco offering more customer-friendly alternatives. However, Rite Aid is in worse financial shape than its competitors and is unable to weather the industry’s downturn.

Is Rite Aid a good stock buy now?

Rite Aid, a drugstore chain, offers prescription medications, over-the-counter drugs, and health and wellness products. The company caters to customer demands through retail and delivery pharmacy services, as well as services provided by its wholly-owned subsidiaries, Elixir, Bartell Drugs, and Health Dialog. Elixir provides pharmacy benefits and services, including accredited mail and specialty pharmacies, prescription discount programs, and an advanced adjudication platform.

Health Dialog offers healthcare coaching and disease management services through interactive live online sessions and phone-based health services. Rite Aid’s stock has received a consensus rating of sell.

Did Rite Aid stock split?

Rite Aid stock has undergone six stock splits, with the most recent one occurring on April 22nd, 2019. Market capitalization, also known as Marketcap, is the value of a publicly listed company, calculated by multiplying the share price with the amount of outstanding shares. CompaniesMarketCap receives financial compensation for Delta App installs and is not associated with CoinMarketCap. com. Stock prices are delayed, and company logos are displayed for editorial purposes only. For inquiries or to report a problem, contact hel nospam lo@8market (nospam) cap. com.

Is Rite Aid doing bad?

Rite Aid, a retail pharmacy chain, has been closing stores since filing for bankruptcy, resulting in a drop from 2, 500 to 1, 554 stores as of early August 2024. This is nearly 1, 000 fewer than the company operated three years ago. The downsizing coincides with a broader shift in retail pharmacy, with CVS and Walgreens also reducing their store count. The company’s downsizing has had ripple effects, with GoodRx estimating that Rite Aid’s closures would reduce its profits by at least $5 million. The company has not provided a target number of locations as part of its bankruptcy plan.

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.

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.

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 stock still being traded?

The New York Stock Exchange (NYSE) has announced that NYSE Regulation will begin proceedings to delist Rite Aid Corporation’s common stock from the NYSE. Trading in the company’s stock will be suspended immediately. The decision was made after Rite Aid disclosed that it had filed voluntary petitions to commence proceedings under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the District of New Jersey. The restructuring term sheet suggests that equity holders will not receive any recovery.

The company has the right to review this decision by a Committee of the Board of Directors of the Exchange. The NYSE will apply to the Securities and Exchange Commission to delist the company’s common stock after completing all necessary procedures, including any appeal by the company.