RCI Hospitality (NASDAQ:RICK) Stock Passes Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Technical move: RCI Hospitality (RICK) crossed above its 200-day moving average of $24.32, trading as high as $25.35 and last at $25.02 on the session noted.
• Earnings miss: The company reported a large quarterly EPS shortfall of ($0.63) versus a $1.81 consensus despite revenue of $70.93M (slightly above estimates), with a net margin of 3.87% and ROE of 4.05%.
• Dividend and ownership: RCI raised its quarterly dividend to $0.08 (annualized $0.32, ~1.3% yield) and has significant institutional interest—about 53.82% of shares are institutionally held, including new or expanded positions from Steel Partners and Two Sigma.

RCI Hospitality Holdings, Inc. (NASDAQ:RICK - Get Free Report) crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $24.32 and traded as high as $25.35. RCI Hospitality shares last traded at $25.02, with a volume of 41,686 shares.

RCI Hospitality Price Performance

The company has a 50 day moving average price of $23.52 and a 200-day moving average price of $24.32. The company has a quick ratio of 0.73, a current ratio of 0.81 and a debt-to-equity ratio of 0.82. The company has a market cap of $192.90 million, a price-to-earnings ratio of 20.85 and a beta of 0.77.

RCI Hospitality (NASDAQ:RICK - Get Free Report) last released its quarterly earnings data on Thursday, March 19th. The restaurant operator reported ($0.63) earnings per share (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 during the quarter, compared to analyst estimates of $69.80 million.

RCI Hospitality Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were paid a $0.08 dividend. This is an increase from RCI Hospitality's previous quarterly dividend of $0.07. This represents a $0.32 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend was Monday, March 16th. RCI Hospitality's payout ratio is currently 26.67%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in RICK. Steel Partners Holdings L.P. acquired a new position in shares of RCI Hospitality in the fourth quarter valued at approximately $7,459,000. Two Sigma Investments LP increased its stake in shares of RCI Hospitality by 1,375.2% in the third quarter. Two Sigma Investments LP now owns 79,320 shares of the restaurant operator's stock valued at $2,420,000 after buying an additional 73,943 shares during the period. Qube Research & Technologies Ltd acquired a new position in shares of RCI Hospitality in the third quarter valued at approximately $1,043,000. AQR Capital Management LLC increased its stake in shares of RCI Hospitality by 30.1% in the fourth quarter. AQR Capital Management LLC now owns 99,461 shares of the restaurant operator's stock valued at $2,371,000 after buying an additional 23,015 shares during the period. Finally, GSA Capital Partners LLP acquired a new stake in RCI Hospitality during the 3rd quarter valued at approximately $686,000. Institutional investors and hedge funds own 53.82% of the company's stock.

About RCI Hospitality

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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