Taking a Fresh Look at Rite Aid Corporation (RAD)

Rite Aid Corporation (RAD) is an interesting player in the Services space, with a focus on Drug Stores. The stock has been active on the tape, currently trading at $5.87, up from yesterday’s close by 1.38%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Rite Aid Corporation (RAD) currently trades with a market capitalization of $6.13 Billion. That value represents a market adjusting for revenues that have been falling by -0.79 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For RAD, the company currently has $220.03 Million of cash on the books, which is offset by $22.68 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $32.53 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.03 on a per share basis this quarter. Perhaps, that suggests something about why 1.29% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how RAD has been acting. Looking at the stock’s movement on the chart, Rite Aid Corporation recorded a 52-week high of $8.77. It is now trading 2.9% off that level. The stock is trading $7.41 its 50-day moving average by 1.54%. The stock carved out a 52-week low down at $5.20.

In recent action, Rite Aid Corporation (RAD) has made a move of -31.74% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 21.92, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.74% with $1.04 Billion sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of RAD.

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