Rite Aid shares fall for a third straight session on Tuesday, company appoints Heyward Donigan as its new CEO

August 14, 2019 9:28 am

Rite Aid Corp (RAD) said earlier this week that Heyward Donigan had been appointed as its new Chief Executive Officer, effective immediately.

Donigan is to succeed John Standley, who has been in the CEO role since 2010.

Rite Aid shares closed lower for a third consecutive trading session in New York on Tuesday. It has also been the steepest daily loss since July 22nd. The stock went down 6.70% ($0.47) to $6.55. The latter also was the intraday low and a price level not seen since August 7th ($6.55).

Shares of Rite Aid Corporation have retreated 53.78% so far this year, following a 64.04% slump in 2018.

Heyward Donigan most recently was in the role of Chief Executive Officer at Sapphire Digital, a website focused on health-care plan analysis.

In March, Rite Aid Corp revealed a restructuring plan, which envisages a cut of 400 corporate jobs and a change in leadership. The plan is to save nearly $55 million per year, the company had said.

Last year Rite Aid Corp sold over 1 900 stores to Walgreens and, at present, it operates 2 466 stores in 18 states.

Analyst stock price forecast and recommendation

According to CNN Money, the 4 analysts, offering 12-month forecasts regarding Rite Aid Corp’s stock price, have a median target of $7.00, with a high estimate of $8.00 and a low estimate of $5.00. The median estimate represents a 6.87% upside compared to the closing price of $6.55 on August 13th.

The same media also reported that at least 3 out of 5 surveyed investment analysts had rated Rite Aid Corp’s stock as “Sell”, while 2 – as “Hold”.

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