Rite Aid’s price movement
Rite Aid (RAD) has a market cap of $8.2 billion. Its YTD (year-to-date) price movement was a mix of rises and falls in calendar 2015. After the fiscal 3Q16 earnings report, Rite Aid fell by 0.25% to close at $7.88 per share as of December 17, 2015. The price movement on a weekly, monthly, and YTD basis is 0.0%, 2.1%, and 4.8%, respectively.
At times, the stock broke the support of all the moving day averages in 2015. Currently, Rite Aid is trading 0.45% above its 20-day moving average, 6.5% above its 50-day moving average, and 2.0% below its 200-day moving average.
The First Trust Consumer Staples AlphaDEX ETF (FXG) invests 3.1% of its holdings in Rite Aid. FXG tracks an index of large and mid-cap US consumer staples stocks. The underlying index uses multifactor selection and tiered equal weighting. FXG’s YTD price movement is 6.7% as of December 16, 2015.
Rite Aid’s competitors and their market caps are:
Rite Aid’s performance in fiscal 3Q16
Rite Aid reported fiscal 3Q16 revenue of $8,154.2 million—a rise of 21.8% compared to its revenue of $6,692.3 million in fiscal 3Q15. The revenue from the company’s retail pharmacy segment rose by 0.77% in fiscal 3Q16—compared to the revenue in fiscal 3Q15. It reported pharmacy services segment revenue of $1,500.9 million in fiscal 3Q16. The company’s cost of revenue as a percentage of revenue rose by 5.6% in fiscal 3Q16—compared to the same period last year.
Its net income and EPS (earnings per share) fell to $59.5 million and $0.06, respectively, in fiscal 3Q16—compared to its net income and EPS of $104.8 million and $0.10, respectively, in fiscal 3Q15. Its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose to $373.2 million in fiscal 3Q16—a rise of 12.1% compared to the same period last year.
Meanwhile, the company’s cash and cash equivalents rose by 48.4%. Its inventories fell by 1.1% on a quarterly basis in fiscal 3Q16. The company’s current ratio rose to 1.51 in fiscal 3Q16—compared to a current ratio of 1.50 in fiscal 3Q15.
Walgreens Boots Alliance and Rite Aid entered into a definitive agreement. Walgreens Boots Alliance will acquire all of Rite Aid’s outstanding shares for $9 per share in cash. The total enterprise value will be ~$17.2 billion including the acquired net debt. The purchase price shows a premium of 48% to the closing price per share on October 26, 2015—the day before the agreement was signed. This acquisition will deliver a high-quality retail pharmacy choice for US consumers in an evolving and increasingly personalized healthcare environment. The merger is expected to be completed by 2H16.
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