RCI Hospitality Holdings, Inc. (NASDAQ:RICK) Sees Large Decline in Short Interest

Key Points

• Short interest fell by 25.9% to 895,884 shares as of March 31, representing about 12.9% of shares sold short and an 8.0‑day short‑interest ratio.
• RCI reported a significant quarterly EPS miss — ($0.63) vs. $1.81 expected — although revenue of $70.93M slightly beat estimates, and the stock carries a consensus "Sell" rating.
• The company raised its quarterly dividend to $0.08 (annualized $0.32), implying a yield of about 1.3%.

RCI Hospitality Holdings, Inc. (NASDAQ:RICK - Get Free Report) was the target of a large decrease in short interest in March. As of March 31st, there was short interest totaling 895,884 shares, a decrease of 25.9% from the March 15th total of 1,209,464 shares. Approximately 12.9% of the shares of the stock are short sold. Based on an average daily volume of 112,443 shares, the short-interest ratio is currently 8.0 days.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reiterated a "sell (d)" rating on shares of RCI Hospitality in a research report on Monday, December 29th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat, the company presently has a consensus rating of "Sell".

RCI Hospitality Price Performance

NASDAQ:RICK traded down $0.05 during mid-day trading on Wednesday, hitting $24.67. 31,396 shares of the stock traded hands, compared to its average volume of 76,894. The business's 50-day moving average price is $23.00 and its 200 day moving average price is $24.59. The company has a market cap of $190.21 million, a PE ratio of 20.56 and a beta of 0.77. RCI Hospitality has a 12-month low of $20.76 and a 12-month high of $47.00. The company has a quick ratio of 0.73, a current ratio of 0.81 and a debt-to-equity ratio of 0.82.

RCI Hospitality (NASDAQ:RICK - Get Free Report) last issued its quarterly earnings data on Thursday, March 19th. The restaurant operator reported ($0.63) EPS for the quarter, missing the consensus estimate of $1.81 by ($2.44). RCI Hospitality had a net margin of 3.87% and a return on equity of 4.05%. The firm had revenue of $70.93 million for the quarter, compared to analysts' expectations of $69.80 million. On average, analysts expect that RCI Hospitality will post 4.55 EPS for the current fiscal year.

RCI Hospitality Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 16th were given a dividend of $0.08 per share. The ex-dividend date was Monday, March 16th. This is a positive change from RCI Hospitality's previous quarterly dividend of $0.07. This represents a $0.32 annualized dividend and a yield of 1.3%. RCI Hospitality's dividend payout ratio (DPR) is presently 26.67%.

Hedge Funds Weigh In On RCI Hospitality

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RICK. BNP Paribas Financial Markets lifted its stake in RCI Hospitality by 62.0% in the second quarter. BNP Paribas Financial Markets now owns 847 shares of the restaurant operator's stock worth $32,000 after purchasing an additional 324 shares during the last quarter. CWM LLC grew its stake in shares of RCI Hospitality by 1,256.9% during the third quarter. CWM LLC now owns 1,954 shares of the restaurant operator's stock valued at $60,000 after buying an additional 1,810 shares during the last quarter. State of Alaska Department of Revenue purchased a new position in shares of RCI Hospitality in the fourth quarter worth about $54,000. State of Wyoming bought a new stake in shares of RCI Hospitality in the 4th quarter valued at about $67,000. Finally, Brighton Jones LLC bought a new stake in shares of RCI Hospitality in the 4th quarter valued at about $211,000. 53.82% of the stock is currently owned by hedge funds and other institutional investors.

RCI Hospitality Company Profile

RCI Hospitality Holdings, Inc operates as a diversified hospitality and entertainment company focused on the ownership and operation of adult nightclubs and themed sports bars throughout the United States and select international markets. The company's U.S. Nightclub segment includes venues branded as Rick's Cabaret, Club Onyx and various other upscale adult entertainment clubs, offering private dance experiences, VIP services and live performances. Its Restaurant & Bar segment operates Bombshells, a brunch-themed sports bar chain featuring chef-driven menus, craft cocktails and game-day viewing in a military-inspired setting.

In addition to its brick-and-mortar venues, RCI Hospitality deploys proprietary digital platforms for talent recruitment, training and scheduling, helping to streamline operations and drive customer engagement.

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