RCI Hospitality (NASDAQ:RICK) Stock Price Breaks Above 200 Day Moving Average - Time to Sell?

Key Points

• RCI Hospitality shares rose above their 200-day moving average, reaching $27.50 and closing near $27.16, though the stock remained below its 50-day average of $28.14.
• Analyst sentiment is largely negative: Weiss Ratings maintained a “sell” rating, while Wall Street Zen upgraded the stock to “buy”; overall, MarketBeat reports a consensus “Sell” rating.
• The company reported $73.94 million in quarterly revenue and $0.90 in EPS, but posted negative net margin and return on equity. It pays a quarterly dividend of $0.08 per share, producing a 1.2% yield, while institutional investors own 53.82% of the stock.

RCI Hospitality Holdings, Inc. (NASDAQ:RICK - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $26.71 and traded as high as $27.50. RCI Hospitality shares last traded at $27.16, with a volume of 39,222 shares changing hands.

Wall Street Analyst Weigh In

RICK has been the subject of a number of research analyst reports. Weiss Ratings reaffirmed a "sell (d)" rating on shares of RCI Hospitality in a report on Monday, August 31st. Wall Street Zen raised shares of RCI Hospitality from a "hold" rating to a "buy" rating in a report on Sunday, September 6th. One equities research analyst has rated the stock with a Sell rating. According to data from MarketBeat.com, RCI Hospitality presently has a consensus rating of "Sell".

RCI Hospitality Stock Performance

The firm has a fifty day simple moving average of $28.14 and a 200-day simple moving average of $26.71. The company has a current ratio of 0.56, a quick ratio of 0.48 and a debt-to-equity ratio of 0.89. The stock has a market cap of $207.50 million, a price-to-earnings ratio of -66.24 and a beta of 0.84.

RCI Hospitality (NASDAQ:RICK - Get Free Report) last released its earnings results on Thursday, August 6th. The restaurant operator reported $0.90 EPS for the quarter. The company had revenue of $73.94 million during the quarter. RCI Hospitality had a negative return on equity of 1.74% and a negative net margin of 1.48%.

RCI Hospitality Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were paid a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend was Tuesday, September 15th. RCI Hospitality's dividend payout ratio is -78.05%.

Hedge Funds Weigh In On RCI Hospitality

Hedge funds have recently added to or reduced their stakes in the company. State of Wyoming bought a new stake in RCI Hospitality during the 2nd quarter worth about $79,000. Copeland Capital Management LLC boosted its stake in shares of RCI Hospitality by 122.0% in the 1st quarter. Copeland Capital Management LLC now owns 3,305 shares of the restaurant operator's stock valued at $75,000 after purchasing an additional 1,816 shares during the last quarter. Deutsche Bank AG bought a new position in shares of RCI Hospitality in the 2nd quarter valued at about $180,000. Squarepoint Ops LLC bought a new position in shares of RCI Hospitality in the 2nd quarter valued at about $224,000. Finally, Manatuck Hill Partners LLC acquired a new stake in shares of RCI Hospitality during the 2nd quarter worth approximately $273,000. Institutional investors own 53.82% of the company's stock.

About RCI Hospitality

RCI Hospitality Holdings, Inc is a hospitality and entertainment company that operates adult nightclubs, sports bars and restaurants in the United States. The company serves customers through a portfolio of adult-entertainment venues, including Rick's Cabaret, Club Onyx, Tootsie's Cabaret, Jaguars and other regional brands.

RCI also operates Bombshells Restaurant & Bar, a sports-themed restaurant and bar concept offering food, beverages and televised sports in a casual setting. In addition to operating venues, the company has pursued a strategy of owning the real estate associated with certain locations, supporting its hospitality operations with a property portfolio.

The company, formerly known as Rick's Cabaret International, has expanded from its original adult-nightclub business into a broader hospitality platform with locations across multiple U.S.

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