ValuEngine Upgrades RCI Hospitality (RICK) to “Sell”

ValuEngine upgraded shares of RCI Hospitality (NASDAQ:RICK) from a strong sell rating to a sell rating in a report issued on Monday morning, ValuEngine reports.

Separately, Zacks Investment Research upgraded RCI Hospitality from a sell rating to a buy rating and set a $25.00 price target on the stock in a research report on Wednesday, March 13th. Two investment analysts have rated the stock with a sell rating and two have given a buy rating to the company. RCI Hospitality has a consensus rating of Hold and an average price target of $29.50.

NASDAQ RICK opened at $23.21 on Monday. RCI Hospitality has a twelve month low of $18.50 and a twelve month high of $34.84. The company has a current ratio of 0.86, a quick ratio of 0.77 and a debt-to-equity ratio of 0.87. The stock has a market cap of $222.59 million, a price-to-earnings ratio of 10.65 and a beta of 0.88.

RCI Hospitality (NASDAQ:RICK) last released its quarterly earnings results on Monday, February 11th. The restaurant operator reported $0.61 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.47 by $0.14. RCI Hospitality had a return on equity of 14.03% and a net margin of 8.15%. The business had revenue of $44.02 million for the quarter. During the same quarter in the previous year, the business earned $0.53 EPS. On average, analysts predict that RCI Hospitality will post 2.4 EPS for the current fiscal year.

RCI Hospitality announced that its board has authorized a share buyback plan on Thursday, January 3rd that permits the company to buyback $10.00 million in outstanding shares. This buyback authorization permits the restaurant operator to reacquire up to 4.6% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s leadership believes its stock is undervalued.

The company also recently declared a quarterly dividend, which was paid on Monday, March 25th. Shareholders of record on Monday, March 11th were given a dividend of $0.03 per share. The ex-dividend date of this dividend was Friday, March 8th. This represents a $0.12 dividend on an annualized basis and a yield of 0.52%. RCI Hospitality’s payout ratio is 5.50%.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RICK. Bank of New York Mellon Corp increased its holdings in shares of RCI Hospitality by 17.3% in the third quarter. Bank of New York Mellon Corp now owns 63,122 shares of the restaurant operator’s stock worth $1,869,000 after buying an additional 9,293 shares during the period. Algert Global LLC purchased a new position in shares of RCI Hospitality in the third quarter worth about $204,000. JPMorgan Chase & Co. increased its holdings in shares of RCI Hospitality by 7.1% in the third quarter. JPMorgan Chase & Co. now owns 39,228 shares of the restaurant operator’s stock worth $1,161,000 after buying an additional 2,612 shares during the period. MetLife Investment Advisors LLC increased its holdings in shares of RCI Hospitality by 54.9% in the third quarter. MetLife Investment Advisors LLC now owns 7,368 shares of the restaurant operator’s stock worth $218,000 after buying an additional 2,612 shares during the period. Finally, Vanguard Group Inc increased its holdings in shares of RCI Hospitality by 4.8% in the third quarter. Vanguard Group Inc now owns 466,172 shares of the restaurant operator’s stock worth $13,804,000 after buying an additional 21,538 shares during the period. Institutional investors and hedge funds own 50.81% of the company’s stock.

RCI Hospitality Company Profile

RCI Hospitality Holdings, Inc, through its subsidiaries, engages in the hospitality and related businesses in the United States. It operates in Nightclubs, Bombshells, and Media Group segments. The company owns and/or operates upscale adult nightclubs serving primarily businessmen and professionals under the Rick's Cabaret, Jaguars Club, Tootsie's Cabaret, XTC Cabaret, Club Onyx, Hoops Cabaret and Sports Bar, Scarlett's Cabaret, Temptations Adult Cabaret, Foxy's Cabaret, Vivid Cabaret, Downtown Cabaret, Cabaret East, The Seville, Silver City Cabaret, and Kappa Men's Club.

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