Raia Drogasil (OTCMKTS:RADLY) Sets New 1-Year Low - Should You Sell?

Key Points

• Raia Drogasil shares hit a new 52-week low, falling to $2.63 before last trading at $2.71, well below their 50-day and 200-day moving averages.
• Analyst sentiment remains cautiously positive: Jefferies upgraded the stock to “Buy,” while the consensus rating is “Moderate Buy” with a $5.20 average price target.
• The company met quarterly EPS expectations at $0.05 but reported revenue of $2.17 billion, below the $2.32 billion consensus estimate; analysts forecast full-year EPS of $0.17.

Raia Drogasil S.A. (OTCMKTS:RADLY - Get Free Report) hit a new 52-week low on Tuesday. The company traded as low as $2.63 and last traded at $2.71, with a volume of 13,437 shares. The stock had previously closed at $2.76.

Analyst Upgrades and Downgrades

Separately, Jefferies Financial Group upgraded Raia Drogasil to a "buy" rating and set a $5.20 price objective on the stock in a research report on Sunday, October 18th. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $5.20.

Raia Drogasil Stock Performance

The company has a current ratio of 1.41, a quick ratio of 0.58 and a debt-to-equity ratio of 0.99. The company has a market cap of $3.52 billion and a P/E ratio of 17.85. The business's 50 day simple moving average is $3.74 and its 200 day simple moving average is $4.07.

Raia Drogasil (OTCMKTS:RADLY - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported $0.05 EPS for the quarter, hitting analysts' consensus estimates of $0.05. The business had revenue of $2.17 billion during the quarter, compared to the consensus estimate of $2.32 billion. Raia Drogasil had a net margin of 2.99% and a return on equity of 20.12%. Sell-side analysts predict that Raia Drogasil S.A. will post 0.17 earnings per share for the current fiscal year.

Raia Drogasil Company Profile

Raia Drogasil, now operating under the name RD Saúde, is a Brazilian healthcare and pharmacy retail company. It operates a network of pharmacies offering prescription medicines, over-the-counter drugs, vitamins, personal care products, beauty items and other health-related merchandise.

The company also provides digital purchasing and delivery services through its online channels, supporting customers with prescription fulfillment, health products and related services. Its operations include pharmacy-based healthcare initiatives designed to complement its retail business and improve access to everyday healthcare.

RD Saúde was created in 2011 through the merger of Drogasil and Droga Raia, two established Brazilian pharmacy chains.

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