Westpark Capital Reaffirms Buy Rating for RCI Hospitality (RICK)

Westpark Capital reaffirmed their buy rating on shares of RCI Hospitality (NASDAQ:RICK) in a report released on Wednesday morning. They currently have a $34.00 price target on the restaurant operator’s stock.

“We believe Bombshells will become very material for RICK going forward as it is a significant contributor of revenues and earnings, but is also seeing margin expansion. Management stated in the earnings call that they are in advanced negotiations to acquire additional Adult Entertainment clubs. We remain upbeat on RICK, and maintain our Outperform rating and $34 price target.”,” the firm’s analyst wrote.

Several other research analysts also recently weighed in on RICK. BidaskClub downgraded shares of RCI Hospitality from a buy rating to a hold rating in a research report on Wednesday, May 2nd. Zacks Investment Research downgraded shares of RCI Hospitality from a buy rating to a hold rating in a research report on Wednesday, April 18th. ValuEngine raised shares of RCI Hospitality from a hold rating to a buy rating in a research report on Friday, February 2nd. Finally, TheStreet downgraded shares of RCI Hospitality from a b rating to a c+ rating in a research report on Monday, March 26th. Four research analysts have rated the stock with a buy rating, RCI Hospitality currently has an average rating of Buy and a consensus price target of $34.50.

Shares of RCI Hospitality opened at $31.93 on Wednesday, according to Marketbeat. The company has a market capitalization of $313.70 million, a PE ratio of 16.06 and a beta of 0.42. The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.89 and a current ratio of 1.16. RCI Hospitality has a 12-month low of $19.71 and a 12-month high of $33.78.

RCI Hospitality (NASDAQ:RICK) last announced its quarterly earnings data on Thursday, May 10th. The restaurant operator reported $0.65 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.51 by $0.14. The company had revenue of $41.23 million for the quarter, compared to analysts’ expectations of $40.27 million. RCI Hospitality had a net margin of 12.95% and a return on equity of 13.51%. During the same quarter in the previous year, the company posted $0.39 EPS. research analysts forecast that RCI Hospitality will post 2.08 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Monday, June 25th. Stockholders of record on Monday, June 11th will be given a $0.03 dividend. This represents a $0.12 annualized dividend and a dividend yield of 0.38%. The ex-dividend date of this dividend is Friday, June 8th. RCI Hospitality’s dividend payout ratio (DPR) is currently 8.39%.

Several institutional investors have recently added to or reduced their stakes in the company. Millennium Management LLC increased its position in shares of RCI Hospitality by 114.5% in the first quarter. Millennium Management LLC now owns 120,826 shares of the restaurant operator’s stock worth $3,430,000 after acquiring an additional 64,492 shares in the last quarter. A.R.T. Advisors LLC purchased a new position in shares of RCI Hospitality in the first quarter worth approximately $289,000. Citigroup Inc. increased its position in shares of RCI Hospitality by 686.0% in the first quarter. Citigroup Inc. now owns 10,241 shares of the restaurant operator’s stock worth $290,000 after acquiring an additional 8,938 shares in the last quarter. ClariVest Asset Management LLC increased its position in shares of RCI Hospitality by 10.7% in the first quarter. ClariVest Asset Management LLC now owns 19,478 shares of the restaurant operator’s stock worth $553,000 after acquiring an additional 1,877 shares in the last quarter. Finally, MetLife Investment Advisors LLC purchased a new position in shares of RCI Hospitality in the fourth quarter worth approximately $133,000. 49.07% of the stock is currently owned by institutional investors and hedge funds.

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 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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