Boston, MA 02/21/2014 (wallstreetpr) – Rite Aid Corporation (NYSE:RAD) is this week’s gainer after announcing it had expanded its distribution agreement with drug retailer McKesson, its shares were up beat moving up by 2.2% as a result of the positive news. The agreement involve the distribution of both brand and generic pharmaceuticals. The week has seen the company hit its 52 week high of $6.55.
Tuesday mid-morning shares saw the company shares soar by 5.3% to a high of $6.24 at the back of traded volume of 21.5 million.
The terms of the agreement involves McKesson being responsible for sourcing and distributing Rite Aid’s Pharmaceuticals. Rite Aid stands to benefit from McKesson daily direct store delivery for both brand and generic pharmaceuticals
Rite Aid Corporation (NYSE:RAD) is currently rated as a hold by a number of investment firms as it continues to show strengths in key sectors. Same store sales for Rite Aid were up by 0.3% for the four weeks of January as a result of increase in front end comps that was offset by a decline in pharmacy comps.
Since Rite Aid Corporation (NYSE:RAD) released its results on January 30, 2014 its stock has risen by almost 13.1%, this has kept investors and shareholder moving considering it reported below par results in its third quarter of F2014. The company continues to show strength in its revenue growth which is up compared to industry average of 8.4%. Rite Aid share price has soared by 263.41% to date when compared to a year ago exceeding the broader market expectation and performance.
April 4th Options
Rite Aid Corporation (NYSE:RAD) Options became available yesterday for the expiration of April 4th with a 10 cents bid at the put contract of $6 a share. The $6 strike price represents a 7% discount at the current share price.
Rite Aid Corporation (NYSE:RAD) shares moved up on Thursday trading session by 1.87% to close the day at a high of $6.53.
