Rite Aid (RAD)

Dec 31, 2021Trade Ideas

Keep an eye on Rite Aid (RAD) heading into the new year.

After dropping for most of 2021, the stock is starting to see signs of solid momentum. Helping, President and CEO Heyward Donigan bought 14,350 shares for $200,000 the day after the company posted stronger than expected earnings.

In addition, the company said it would close stores to cut costs, and now expects to lose less money than anticipated, according to Barron’s, thanks to higher demand for COVID vaccines and testing.

For its fiscal year ending in February, Rite Aid now expects to lose about 49 cents a share, which is far less than the 90 cent loss it previously forecast. It also expects to see adjusted EBITDA of between $500 million and $520 million for the full year, as compared with previous estimates for between $460 million and $500 million.

“As a result of the momentum in the third quarter, and an anticipated increase in demand for COVID-19 vaccines and testing vs. prior expectations, Rite Aid Corporation is raising its fiscal 2022 adjusted Ebitda guidance,” the company said, as also quoted by Barron’s.

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