Rite Aid Corporation (RAD) Disappoints: Is It A Good Buy Right Now?

When looking at the hedgies followed by Insider Monkey, Larry Robbins’ Glenview Capital had the largest position in Rite Aid Corporation (NYSE:RAD), worth close to $121.6 million, amounting to 0.6% of its total 13F portfolio. Coming in second is Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital, with a $70 million position. The fund has 0.4% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Israel Englander’s Millennium Management, Paul Reeder and Edward Shapiro’s PAR Capital Management and John Overdeck and David Siegel’s Two Sigma Advisors.

Seeing as Rite Aid Corporation (NYSE:RAD) has experienced falling interest from hedge fund managers, we can see that there exists a select few money managers who were dropping their full holdings last quarter. Noteworthy is Jeremy Green’s Redmile Group which dumped the biggest stake of the 700 funds monitored by Insider Monkey, comprising an estimated $45.4 million in stock. Robert Pohly of Samlyn Capital was right behind this move as the fund sold off about $25.7 million of the stock. These moves are intriguing to say the least, as total hedge fund interest was cut by 1 fund last quarter.

Overall, insiders are slightly bullish and hedge funds are slightly bearish. Rite Aid doesn’t look like a slam dunk investment based on our smart money indicators. Because of this and also considering the recent disappointing earnings news, we don’t think it is a good idea to buy the stock right now.

Disclosure: None