RCI Hospitality (RICK) Cut to “Strong Sell” at ValuEngine

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RCI Hospitality (NASDAQ:RICK) was downgraded by equities researchers at ValuEngine from a “sell” rating to a “strong sell” rating in a research report issued to clients and investors on Friday.

Separately, Zacks Investment Research raised RCI Hospitality from a “sell” rating to a “buy” rating and set a $25.00 price objective on the stock in a research report on Wednesday. Two analysts have rated the stock with a sell rating and two have assigned a buy rating to the company. RCI Hospitality currently has a consensus rating of “Hold” and an average price target of $29.50.

RCI Hospitality stock opened at $22.19 on Friday. 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 company has a market cap of $219.20 million, a price-to-earnings ratio of 10.18 and a beta of 0.89. RCI Hospitality has a fifty-two week low of $18.50 and a fifty-two week high of $34.84.

RCI Hospitality (NASDAQ:RICK) last posted its quarterly earnings data on Monday, February 11th. The restaurant operator reported $0.61 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.47 by $0.14. The business had revenue of $44.02 million for the quarter. RCI Hospitality had a return on equity of 14.03% and a net margin of 8.15%. During the same period in the previous year, the firm posted $0.53 earnings per share. As a group, analysts forecast that RCI Hospitality will post 2.4 earnings per share for the current year.

RCI Hospitality announced that its Board of Directors has approved a share repurchase program on Thursday, January 3rd that authorizes the company to repurchase $10.00 million in outstanding shares. This repurchase authorization authorizes the restaurant operator to purchase up to 4.6% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s leadership believes its stock is undervalued.

Several institutional investors and hedge funds have recently modified their holdings of RICK. Bank of America Corp DE boosted its position in shares of RCI Hospitality by 50.6% in the 4th quarter. Bank of America Corp DE now owns 7,705 shares of the restaurant operator’s stock worth $172,000 after purchasing an additional 2,588 shares in the last quarter. Algert Global LLC bought a new stake in shares of RCI Hospitality in the 3rd quarter worth approximately $204,000. Globeflex Capital L P bought a new stake in shares of RCI Hospitality in the 4th quarter worth approximately $204,000. MetLife Investment Advisors LLC boosted its position in shares of RCI Hospitality by 54.9% in the 3rd quarter. MetLife Investment Advisors LLC now owns 7,368 shares of the restaurant operator’s stock worth $218,000 after purchasing an additional 2,612 shares in the last quarter. Finally, Alambic Investment Management L.P. bought a new stake in shares of RCI Hospitality in the 4th quarter worth approximately $237,000. 50.81% of the stock is currently owned by hedge funds and other institutional investors.

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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