Rite Aid Stock Pops Amid Layoffs, C-Suite Shakeup

400 corporate positions have been cut as well

Lillian Currens

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.

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!