RAD Stock Could Rebound Soon

The firm just appointed its CEO to an additional role as president

Digital Content Manager
Feb 12, 2020 at 2:07 PM
facebook X logo linkedin

Since an impressive climb in late-December that culminated in an annual peak at the $24 level, the shares of Rite Aid Corporation (NYSE:RAD) have been in sell-off mode. While the $12 region has captured some of these losses, the shares can't seem to shake the pressure mounting at the $14 level, with RAD falling from this area after yesterday's announcement that its CEO Heyward Donigan was also named president of the company, effective Feb. 5. Another rebound could be on the horizon however, as RAD's recent pullback put it in line with a historically bullish trendline on the charts. 

Specifically, Rite Aid just came within less than one standard deviation of its 40-day moving average. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, RAD has experienced four similar signals within the past four years, and was higher one month later three times, averaging a gain of 22.1%. From its current perch at $13.26, a similar move would put RAD at $16.22, home to its highest close since its late-December peak. 

RAD Chart Feb 12

An unwinding of shorts could push the security higher, too. Short interest has climbed 30.2% in the last two reporting periods and now represents a whopping 35.8% of the stock's available float. At RAD's average pace of trading, it would take nearly three days to buy back these bearish bets.

Similarly, the brokerage bunch is overwhelmingly pessimistic. Of the three in coverage, one analyst says "hold," while two call Rite Aid a "strong sell." Meanwhile, the 12-month consensus price target of $7.63 stands at a steep 42.6% discount to current levels, leaving the door open for a round of bull notes. 



Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI