Rite Aid Corporation (NYSE: RAD)
Rite Aid Corporation is having an incredibly strong start to the trading session today. At the opening bell, the stock found itself well into the green. Throughout the first 20 minutes or so, the stock has held onto the strong gains and looks like it will stay in the green throughout the day. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching with regard to RAD ahead.
What We’re Seeing From RAD
As mentioned above, Rite Aid Corporation is doing incredibly well in early morning trading today. When the opening bell rang, the stock found itself well into the green. While the stock hasn’t gained much since, it’s definitely holding onto the pre-market gains. Currently (9:49), RAD is trading at $8.63 per share after a gain of $0.46 per share (5.63%) thus far today.
Why The Stock Is Climbing
As usual, as soon as our partners at Trade Ideas sent us the ping notifying us of the RAD run, the CNA Finance team started digging to see what was causing the movement. In this case, we didn’t have to dig very deep. In fact, the story jumped right out at us. The gains seem to be the result of an asset sale that was announced early this morning.
In the early morning hours, Rite Aid Corporation released a press release informing investors of a large asset sale. In the release, investors learned that the company has entered into an agreement with Fred’s, Inc (FRED) to sell 865 stores and certain assets related to operations. The total value of the sale comes in at $950 million.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping an incredibly close eye on RAD. In particular, we’ll be watching to ensure that the sale goes over smoothly. At the moment, it’s at the mercy of FTC approval and other customary conditions. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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[Image Courtesy of Wikimedia]