How to Buy Rite Aid (RADCQ) Stock

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In an ever-changing market, retail stocks present both opportunities and risks. As one of the leading drugstore chains in the United States, Rite Aid has seen its fair share of ups and downs, making it crucial for potential investors to approach with a well-informed strategy.

Investing in Rite Aid could be a profitable decision, but success requires careful consideration and a strategic approach. In this article, we will walk you through the step-by-step process of buying RADCQ stock.

How to Purchase Rite Aid Stock

Rite Aid’s stock trades under the ticker symbol RADCQ in the OTC markets. You can pick up shares of Rite Aid following these simple steps:

Step 1: Determine the Amount You Want to Invest

Decide how much you want to invest in Rite Aid based on your portfolio and risk assessment. Because Rite Aid’s prices whip around much more than large cap stocks, the amount of shares you want to purchase can change dramatically day to day.

Step 2: Choose an Appropriate Broker

Rite Aid should be available for purchase through most registered brokers in the U.S. Decide which broker fits your needs based on transaction costs, service and platform.

Step 3: Purchase Shares of Rite Aid

When you’ve decided on how many shares you want to purchase and picked a broker, you will place an order to buy shares of Rite Aid.

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Rite Aid at a Glance

Founded in 1962, Alex Grass grew Rite Aid from a local drugstore in Scranton, Penn. It became the largest drugstore chain in the U.S. by 1995 and number two in total sales. The company’s IPO hit the AMEX in 1968 and moved to the NYSE in 1970.

Over the years, the company went through several major milestones.

• 1972: Rite Aid operated 267 stores in 10 states.
• 1983: Passed $1 billion in revenue.
• 1995: Rite Aid acquired Perry Drug stores in Michigan, the largest to date.
• 1999-2001: Shares cratered from $51.13 down to as low as $1.50 after the ensuing scandal.
• October 2015: Walgreens attempted to buy Rite Aid at $9 per share; Fred’s also purchased 865 stores.
• June 2017: Walgreens canceled the merger and purchased 2,186 stores from Rite Aid.
• February 2018: Albertsons attempted to purchase the remaining 2,600 Rite Aid stores.
• August 2018: Albertsons canceled its acquisition.
• October 2023: Rite Aid faced delisting from the New York Stock Exchange.

Check out Rite Aid’s Our Story for the company’s history.

History of Rite Aid stock

Rite Aid’s stock marched from its IPO in 1967 all the way to a high of $51.13 at the beginning of 1999. The scandal took shares down to $21 within three months, below $10 within one year, and down below $2 within two years. The stock struggled back to a high of $10 in 2001 but languished for most of the next decade. Eventually, shares crashed again to a low of $0.28 during the Recession.

Rite Aid price chart as of 8/29/24. Source: TradingView

Throughout the early 2010s, Rite Aid undertook various restructuring initiatives, aimed at stabilizing its operations and improving financial performance. Despite these efforts, the stock price was slow to recover, oscillating as the company reported mixed quarterly earnings.

As the decade progressed, particularly around the mid-2010s, Rite Aid began to show signs of recovery with a gradual increase in its stock price, largely driven by strategic acquisitions and a focus on expanding its healthcare services.

Entering the pandemic in 2020, Rite Aid, like many retailers, experienced a surge in demand due to increased foot traffic and a heightened focus on health and wellness. This led to an uptick in the stock’s performance, as investors recognized the essential role of pharmacies during the health crisis.

Looking toward 2024, Rite Aid's stock chart reflects ongoing challenges as well as opportunities for growth. The pandemic had lasting effects on the retail pharmacy sector, pushing companies like Rite Aid to innovate and adapt to a more digitally-oriented consumer base.

Pros of Buying RADCQ Stock

Investing in Rite Aid stock presents several advantages for investors looking to capitalize on the company's potential growth and market positioning.

• Potential for growth: Rite Aid has been implementing strategic changes and restructuring efforts, which may lead to improved financial performance in the long run. As the company focuses on enhancing its retail footprint and expanding its services, there is potential for stock appreciation.
• Defensive investment: As a pharmacy and healthcare retailer, Rite Aid can benefit from consistent demand for pharmaceutical products and services regardless of economic conditions. This stability can make it a more resilient investment option compared to companies in more volatile sectors.
• Dividend income: Rite Aid has historically paid dividends to its shareholders, offering a potential source of income for investors. Even if stock prices experience volatility, dividends can provide a consistent return on investment, appealing to income-focused investors.

Cons of Buying RADCQ Stock

While investing in Rite Aid stock may seem appealing due to its potential for growth and recovery in the retail pharmacy sector, there are several cons to consider that could impact long-term investment success.

• Financial instability: Rite Aid has faced significant financial challenges, including high levels of debt and inconsistent profit margins. This instability can lead to increased risk, making the stock a less attractive option for conservative investors.
• Intense competition: The retail pharmacy space is highly competitive, with players like CVS and Walgreens offering similar products and services. Increased competition can pressure Rite Aid's market share and profit margins, potentially impacting stock performance.
• Regulatory challenges: The healthcare industry, including pharmacy operations, is subject to complex regulations that can affect profitability and operational flexibility. Navigating these regulations can pose risks to Rite Aid's business model and financial health, adding uncertainty for investors.

Future Outlook for Rite Aid Stock

Rite Aid faces two likely futures. The first involves another player coming in and successfully purchasing Rite Aid or a majority of its business. As in the past, offers have sent shares soaring in a matter of days. However, given the inability for past deals to finish, it’s unlikely we’ll see this scenario play out.

The other option keeps the company on their current strategy. With a large number of stores in many markets, Rite Aid could realign itself to consumer trends with reasonable capital expenditure. Share prices will move higher if executives show investors they can grow revenues and profits.

Is Rite Aid Stock Right for You?

Low-priced stocks like Rite Aid move quickly. Even with shares in the low single digits, shares have room to fall further. Stocks with low share prices should be looked at as a speculative holding in a portfolio.

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