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Why Rite Aid Stock Popped Today

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Rite Aid Corporation (Ticker: RAD) shares are experiencing a significant surge in trading volume on Wednesday. This comes after a challenging week for Rite Aid stock.

Background: The stock witnessed a sharp decline on Monday due to reports indicating the company’s intention to close several hundred stores as part of a bankruptcy plan. The Wall Street Journal recently reported that Rite Aid plans to shut down between 400 and 500 of its 2,100 locations, with some creditors advocating for additional closures.

On Tuesday, the stock continued to decline before experiencing a nearly 60% increase in price on Wednesday, accompanied by unusually high trading volume.

It’s worth noting that there has been a growing short interest in Rite Aid stock, with 20.74% of shares currently being sold short. This factor may have influenced the stock’s price movement on Wednesday.

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RAD Price Movement: As of the time of this publication, Rite Aid stock is up 20% at $0.51, according to Benzinga Pro.

Image by 652234 from Pixabay

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