Rite Aid Stock Pops Amid Layoffs, C-Suite Shakeup

400 corporate positions have been cut as well

Digital Content Manager

Mar 13, 2019 at 9:54 AM

The shares of Rite Aid Corporation (NYSE:RAD) are up 9.8% at $0.74 in early trading after the company announced that several executives would be leaving the company, including CEO John Standley, CFO Darren Karst, and COO Kermit Crawford. In addition to the C-suite shift, 400 corporate positions will also be cut. The stock is now pacing for its best day in months.

RAD stock just bottomed out at a nearly 10-year low of $0.60 on Dec. 27 -- down roughly 66% from its late-June highs. The stock attempted a rebound before resistance at the 60-day moving average turned the equity lower in January. Rite Aid's rally has it back within striking distance of the trendline today.

Analysts are approaching the security with caution. Currently, three are calling it a "hold," and two say "buy." Plus, the $0.75 consensus 12-month target price falls right in line with current levels.

Echoing this leery sentiment, RAD's short interest is up 13.5% in the past month. The 126.48 million shares sold short represent a healthy 11.9% of the stock's available float. At the stock's average daily trading volume, it would take over two weeks to buy back these bearish bets.

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