Rite Aid (RAD, $1.28) Wants A Board Reshuffle
Rite Aid wants to rejig its board, after two failed merger plans.
The drugstore chain said Thursday that three new, independent directors will be nominated to its board and that CEO John Standley will no longer hold the title of chairman. Next month, shareholders will vote on whether to approve board nominees Robert Knowling Jr., Louis Miramontes and Arun Nayar – who, if elected, would replace current directors David Jessick, Myrtle Potter and Frank Savage. The shakedown of management comes close on the heels of failure of two buyout attempts - by the grocer Albertsons and pharmacy chain Walgreens respectively.
Walgreens, however, did buy nearly 2,000 stores from Rite Aid Corp. Following the sale of its stores, Rite Aid now has about 2,500 locations mostly on the East and West coasts, and a pharmacy benefit management business.
On Thursday, Rite Aid announced that its fiscal second-quarter earnings narrowly fell short of the consensus expectation on Wall Street.
Momentum Indicator for WBA turns negative, indicating new downward trend
WBA saw its Momentum Indicator move below the 0 level on May 24, 2023. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 91 similar instances where the indicator turned negative. In of the 91 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
WBA moved below its 50-day moving average on May 01, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for WBA crossed bearishly below the 50-day moving average on May 03, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WBA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for WBA entered a downward trend on June 01, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where WBA's RSI Indicator exited the oversold zone, of 36 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 62 cases where WBA's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for WBA just turned positive on June 01, 2023. Looking at past instances where WBA's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
WBA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.234) is normal, around the industry mean (10.669). P/E Ratio (7.485) is within average values for comparable stocks, (157.999). WBA has a moderately high Dividend Yield (0.063) as compared to the industry average of (0.030). P/S Ratio (0.197) is also within normal values, averaging (0.938).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. WBA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WBA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of drug store services
Industry DrugstoreChains
WBA and
Correlation & Price change
A.I.dvisor indicates that over the last year, WBA has been loosely correlated with RAD. These tickers have moved in lockstep 49% of the time. This A.I.-generated data suggests there is some statistical probability that if WBA jumps, then RAD could also see price increases.
| Ticker / NAME | Correlation To WBA | 1D Price Change % | ||
|---|---|---|---|---|
| WBA | 100% | -0.16% | ||
| RAD - WBA | 49% Loosely correlated | -1.68% | ||
| PETS - WBA | 36% Loosely correlated | +4.18% | ||
| HITI - WBA | 25% Poorly correlated | -1.54% | ||
| MDVL - WBA | 24% Poorly correlated | +16.09% | ||
| LFMD - WBA | 22% Poorly correlated | +11.79% | ||
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