NEW YORK, NY / ACCESSWIRE / June 25, 2018 / Rite Aid saw slight gains on high volume in Friday's trading session after announcing a special shareholder meeting for August that will vote on the proposed merger with Albertsons. Shares of CarMax also blew up in the session after announcing impressive first quarter results that beat on both the top and the bottom line.
RDI Initiates Coverage on:
Rite Aid Corporation
Rite Aid Corporation shares closed in the green up 2.54% on colossal trading volume compared to usual on Friday. The drugstore chain traded a little over 104 million shares compared to an average trading volume of just under 12.8 million shares. The company announced a meeting date of August 9, 2018, for a special meeting of stockholders of record as of June 22, 2018 to, among other things, consider and vote on the proposed merger with Albertsons. The special meeting of stockholders will take place at 8:30 a.m. Eastern Time in New York City. It was back in February that Albertsons and Rite Aid announced that Albertsons will buy the approximately 2,500 Rite Aid stores that rival drugstore chain Walgreens Boots Alliance Inc. is not buying from Rite Aid. The company will also be releasing first quarter financial results for its Fiscal 2019, ended June 2, 2018, on Wednesday, June 27, 2018.
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CarMax, Inc. shares closed up 12.86% with nearly 13 million shares traded this past Friday. The largest used-car retailer in the U.S. and a Fortune 500 company, saw its shares hit a new high of $81.67 after reporting first quarter earnings. Earnings per share was $1.33 for the period with revenue hitting $4.79 billion. Both figures beat what analysts had been expecting. President and CEO William D. Nash stated during the earnings call, "Our used unit comps for the first quarter were negative 2.3% against another tough year-over-year comparison. The comps were driven by lower traffic and better conversion and represented a significant improvement from the previous quarter. Total used units grew by 1.6%. While used vehicle valuations were still higher than in last year's first quarter, the year-over-year change in our mix-adjusted vehicle acquisition cost was more favorable in the first quarter than in the fourth quarter. Industry data indicates some signs of recovery in the used vehicle marketplace since the slowdown at the end of last year. These signs include improving supply at auction and more normalized depreciation." He also added, "Our website traffic grew in Q1 by 16%, similar to the previous quarter, again due to website and SCO enhancements."
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Our Actionable Research on Rite Aid Corporation (NYSE: RAD) and CarMax, Inc. (NYSE: KMX) can be downloaded free of charge at Research Driven Investing.
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