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 $1.70, down from yesterday’s close by -1.16%. 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

Rite Aid Corporation (RAD) currently trades with a market capitalization of $1.79 Billion. That value represents a market adjusting for revenues that have been falling by -8.62 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $325.59 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.01 on a per share basis this quarter. Perhaps, that suggests something about why 1.68% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Rite Aid Corporation recorded a 52-week high of $4.21. It is now trading 2.51% off that level. The stock is trading $1.65 its 50-day moving average by -0.05%. The stock carved out a 52-week low down at $1.38.

In recent action, Rite Aid Corporation (RAD) has made a move of +1.80% 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 14.57, 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 13.98% with $1.05 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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