Rite Aid Corp. (NYSE: RAD) announced on Wednesday morning that there will be some changes in its executive leadership as well as some restructuring. At this point, investors are welcoming anything to pull this stock out of the tailspin it has experienced over the past two years.
Excluding Wednesday’s move, Rite Aid had underperformed the broad markets, with its stock down about 4% year to date. However, the charts get worse over the past 52 weeks, with the stock down about 61%. As far back as January 2017, this was an $8 stock.
As part of the leadership transition, John Standley will step down as chief executive officer. The board of directors will promptly commence a search process for a new CEO, and Standley will remain in the position until the appointment of his successor.
Rite Aid also announced additional management changes, each of which is effective immediately:
- Bryan Everett, chief operating officer of Rite Aid Stores has been promoted to chief operating officer of the company, succeeding Kermit Crawford who is leaving the company.
- Matt Schroeder, chief accounting officer and treasurer, has been promoted to chief financial officer. Schroeder is succeeding Darren Karst who is leaving the company this spring after supporting a brief transition.
- Brian Hoover, group vice president and controller, has been promoted to chief accounting officer.
- Jocelyn Konrad, executive vice president, pharmacy, has been promoted to executive vice president, pharmacy and retail operations.
- Derek Griffith, executive vice president, store operations is leaving the company.
Separately, Rite Aid announced actions that will reduce managerial layers and consolidate roles across the organization, resulting in the elimination of roughly 400 full-time positions, or more than 20% of the corporate positions located at headquarters and across the field organization. Roughly, two-thirds of the reductions will take place immediately, with the balance by the end of fiscal 2020.
Shares of Rite Aid closed Tuesday at $0.68, in a 52-week range of $0.60 to $2.12. The consensus price target is $0.75. Following the announcement, the stock was up about 10% at $0.74 in early trading indications Wednesday.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.