Rite Aid Corporation (NYSE: RAD)
Rite Aid Corporation is having a rough start to the trading session today. When the session opened, the stock was already trading in the red. For the first hour, the stock was on a mad-dash downward. However, minutes ago, the stock was halted. Below, we’ll talk about what we’re seeing from RAD, why, and what we’ll be watching for ahead.
What We’re Seeing From RAD
As mentioned above, Rite Aide Corporation isn’t having a great day in the market today. In fact, when the opening bell rang, the stock was already trading in the red. Since then, we’ve seen dramatic downward movement, pushing the stock further and further into the abyss. However, minutes ago, the slide stopped when the stock was halted. Currently (10:40), RAD is trading at $8.09 per share after a loss of $0.51 per share or 5.93% thus far today.
Why The Stock Is Having Such A Rough Day
Our partners at Trade Ideas were the first to alert us of the movement on RAD. As soon as they did, the CNA Finance team started working to see if we could find the reason for the declines. In this particular case, it didn’t take long to dig up the story. While the stock is officially halted with “news pending”, we believe we have the news.
At the moment, information is surfacing with regard to the deal between Walgreens and Rite Aid. In fact, the idea is that the US FTC is not satisfied with this deal and that it may be blocked. Keep in mind that this is an ongoing breaking story. So, we simply don’t have all of the information for you… YET!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on RAD. In particular, we’re interested in seeing what happens with regard to the deal with Walgreens. If this deal is blocked, we could see further dramatic declines. Nonetheless, as mentioned above, the story is ongoing and breaking. We’ll bring you the updates as they break!
Update: RAD reopens. Currently (11:34), the stock is trading at $7.45 per share after a loss of $1.15 per share or 13.42% thus far today. Evercore says that if the deal doesn’t go through. Rite Aid could fall to $3.50 per share. Currently, there is no further news from the FTC. We will continue to watch the story closely and bring you the updates!
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[Image Courtesy of Wikimedia]