RCI Hospitality (RICK) Downgraded by Zacks Investment Research

RCI Hospitality (NASDAQ:RICK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued 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. “

Several other equities analysts have also recently weighed in on the stock. ValuEngine raised shares of RCI Hospitality from a “strong sell” rating to a “sell” rating in a research note on Thursday. BidaskClub downgraded RCI Hospitality from a “sell” rating to a “strong sell” rating in a report on Thursday, November 1st. Finally, Westpark Capital set a $34.00 price objective on RCI Hospitality and gave the company a “buy” rating in a report on Wednesday, October 17th. Three analysts have rated the stock with a sell rating and one has assigned a buy rating to the company’s stock. RCI Hospitality has a consensus rating of “Hold” and a consensus target price of $36.00.



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

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

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

Hedge funds have recently made changes to their positions in the company. BlackRock Inc. lifted its stake in shares of RCI Hospitality by 11.4% in the second 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 period. Marshall Wace LLP acquired a new position in RCI Hospitality in the third quarter valued at approximately $1,274,000. Renaissance Technologies LLC increased its holdings in shares of RCI Hospitality by 3.4% during the second quarter. Renaissance Technologies LLC now owns 679,196 shares of the restaurant operator’s stock valued at $21,497,000 after acquiring an additional 22,486 shares in the last quarter. Vanguard Group Inc increased its holdings in shares of RCI Hospitality by 4.8% during the third quarter. Vanguard Group Inc now owns 466,172 shares of the restaurant operator’s stock valued at $13,804,000 after acquiring an additional 21,538 shares in the last quarter. Finally, Vanguard Group Inc. increased its holdings in shares of RCI Hospitality by 4.8% during the third quarter. Vanguard Group Inc. now owns 466,172 shares of the restaurant operator’s stock valued at $13,804,000 after acquiring an additional 21,538 shares in the last quarter. 49.29% of the stock is currently owned by hedge funds and other institutional investors.

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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