RCI Hospitality (RICK) Cut to Sell at Zacks Investment Research

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RCI Hospitality (NASDAQ:RICK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Friday.

According to Zacks, “RCI Hospitality Holdings, Inc. owns and/or operates adult nightclubs that offer live adult entertainment, restaurant, and bar services. It operates adult nightclubs under the name Rick’s Cabaret, Club Onyx, XTC Cabaret, Tootsie’s Cabaret, Cabaret North, Jaguars and Cabaret East. The Company also owns and operates adult Internet Websites. RCI Hospitality Holdings, Inc., formerly known as Rick’s Cabaret International, Inc., is based in Houston, Texas. “

A number of other brokerages have also weighed in on RICK. BidaskClub lowered RCI Hospitality from a “sell” rating to a “strong sell” rating in a research note on Thursday, November 1st. ValuEngine lowered RCI Hospitality from a “sell” rating to a “strong sell” rating in a research note on Tuesday, December 11th. Finally, Westpark Capital set a $34.00 target price on RCI Hospitality and gave the stock a “buy” rating in a research note on Wednesday, October 17th. Three equities research analysts have rated the stock with a sell rating and one has given a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus price target of $36.00.

Shares of RICK opened at $20.71 on Friday. The stock has a market cap of $202.73 million, a P/E ratio of 9.50 and a beta of 0.96. The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.02 and a current ratio of 1.09. RCI Hospitality has a 52-week low of $18.50 and a 52-week high of $34.84.

RCI Hospitality (NASDAQ:RICK) last issued its quarterly earnings data on Monday, December 31st. The restaurant operator reported $0.41 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.05). The company had revenue of $40.68 million for the quarter, compared to analysts’ expectations of $40.96 million. RCI Hospitality had a return on equity of 13.75% and a net margin of 13.10%. As a group, research analysts expect that RCI Hospitality will post 2.35 EPS for the current year.

RCI Hospitality declared that its board has initiated a stock repurchase program on Thursday, January 3rd that authorizes the company to buyback $10.00 million in outstanding shares. This buyback authorization authorizes the restaurant operator to purchase up to 4.6% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. grew its position in RCI Hospitality by 11.4% during the 2nd quarter. BlackRock Inc. now owns 468,991 shares of the restaurant operator’s stock worth $14,842,000 after acquiring an additional 47,846 shares during the last quarter. Algert Global LLC bought a new position in RCI Hospitality during the 3rd quarter worth approximately $204,000. Northern Trust Corp grew its position in RCI Hospitality by 1.7% during the 2nd quarter. Northern Trust Corp now owns 125,890 shares of the restaurant operator’s stock worth $3,984,000 after acquiring an additional 2,101 shares during the last quarter. Panagora Asset Management Inc. grew its position in RCI Hospitality by 18.3% during the 3rd quarter. Panagora Asset Management Inc. now owns 67,924 shares of the restaurant operator’s stock worth $2,011,000 after acquiring an additional 10,505 shares during the last quarter. Finally, Renaissance Technologies LLC grew its position in RCI Hospitality by 3.4% during the 2nd quarter. Renaissance Technologies LLC now owns 679,196 shares of the restaurant operator’s stock worth $21,497,000 after acquiring an additional 22,486 shares during the last quarter. Institutional investors and hedge funds own 49.29% of the company’s stock.

About RCI Hospitality

RCI Hospitality Holdings, Inc, through its subsidiaries, engages in the hospitality and related businesses in the United States. It operates in two segments, Nightclubs and Bombshells. 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, Foxy's Cabaret, Vivid Cabaret, Downtown Cabaret, Temptations Adult Cabaret, Scarlett's Cabaret, Silver City Cabaret, Cabaret East, and The Seville brands.

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