Why Rite Aid Stock Is Climbing This Week

why rite aid stock is climbing this week

Sumary of Why Rite Aid Stock Is Climbing This Week:

  • There was no major news out on the drugstore chain, but the stock did seem to benefit from a short squeeze as shares spiked early in the week, even on Monday when stocks broadly pulled back.
  • So what As the influence of traders on forums like Reddit’s WallStreetBets has grown, it’s not uncommon to see stocks with high short interest move higher with little explanation.
  • As a well-known brand and one with 22% of its shares sold short, the company fits the bill of stocks that would get attention from WallStreetBets, and at least a few traders on the discussion board have pushed for a short squeeze on Rite Aid.
  • The stock jumped 6.8% on Monday on higher-than-normal volume even as the S&P 500 fell 1.6%.
  • Johnson and three major drug distributors agreed to a $26 billion settlement to remove them from liability in the opioid crisis, and the prior week, Rite Aid and its pharmacy peers agreed to a $26 million settlement in an opioid lawsuit from two New York State counties, which could portend similar deals in the future.
  • Without the related interest expense of $200 million a year, the company would be profitable, but the debt burden has been a nagging impediment in its turnaround attempts.

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