Why Rite Aid Shares Could Be Up Another 11% Thursday
Shares of Rite Aid Corporation (NYSE: RAD), a large U.S.-based retail drugstore chain, continue to ride their recent hot streak, having risen another 11% Thursday morning. What's going on?
For additional perspective, Rite Aid shares have soared roughly 116% since Dec. 18, 2019, the day before management released a shocking third-quarter result that included a massive earnings beat. Rite Aid posted adjusted earnings per share of $0.54 during the third quarter, wildly overshooting analysts' estimates calling for adjusted earnings per share of $0.09. The drugstore retailer's third quarter was a huge change of pace from its name being bandied in discussions of potential bankruptcy or buyout, and that could be pressuring short sellers to cover their positions, as they stand to lose much more if the stock continues to move higher. Roughly 26% of Rite Aid's float is sold short, which is considered a high percentage, and Rite Aid trading volume topped 13 million by 11:30 AM EST, suggesting that buying demand is much higher than its average 3.8 million daily volume.
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Source Fool.com
