Rite Aid (RAD): The U.S. Federal Trade Commission (FTC) is yet to give an all-clear to the proposed acquisition of Rite Aid (RAD) by Walgreens Boots Alliance.
If the FTC rejects the acquisition, the Rite Aid (RAD) shareholders will be the biggest losers. The share prices might tank to adjust to the 25% spike in Rite Aid’s (RAD) prices achieved after the Walgreens acquisition announcement and the 10% higher offer price of $9 being paid by Walgreens.
Rite Aid (RAD) will be left battling Walgreens with a much larger debt leverage and lesser cash, which will limit its deal making in the future.
On the other hand, if the FTC gives a green signal to the deal, Walgreens is likely to gain $0.05 to $0.12 per share due to the synergies – a win-win for both companies.
Stocks of Rite Aid Corporation (NYSE:RAD) rallied by 1.94% during the past week but lost 0.47% on a 4-week basis. The company has outperformed the S&P 500 by 0.23% in the past week but underperformed the index by 1.24% in the last 4 weeks.
Rite Aid Corporation (NYSE:RAD) : On Friday heightened volatility was witnessed in Rite Aid Corporation (NYSE:RAD) which led to swings in the share price. The stock opened for trading at $8.2 and hit $8.455 on the upside , eventually ending the session at $8.4, with a gain of 2.56% or 0.21 points. The heightened volatility saw the trading volume jump to 31,459,116 shares. The 52-week high of the share price is $8.69 and the company has a market cap of $8,840 million. The 52-week low of the share price is at $6.33 .
On the company’s insider trading activities, According to the information disclosed by the Securities and Exchange Commission in a Form 4 filing, the officer (SVP) of Rite Aid Corp, Donley Douglas E had sold 34,106 shares worth of $265,345 in a transaction dated June 15, 2016. In this transaction, 34,106 shares were sold at $7.78 per share. Currently the company Insiders own 2.33% of Rite Aid Corporation shares according to the proxy statements. Institutional Investors own 60.69% of Rite Aid Corporation shares.
Rite Aid Corporation is a retail drugstore chain. The Company sells prescription drugs and a range of other merchandise, which are referred to as front-end products. The Company’s drugstores’ primary business is pharmacy services. It operates approximately 4,570 stores in 31 states across the country and in the District of Columbia. Its front-end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise and various other every day and convenience products. The Company offers a range of products through its portfolio of private brands. Its classes of products include prescription drugs, over-the-counter medications and personal care, health and beauty aids, and general merchandise and other. It sells private brand and co-branded products. It operates under The Rite Aid name.