RCI Hospitality (NASDAQ:RICK) Stock Price Passes Above 200 Day Moving Average - Should You Sell?

Key Points

• Price action: RCI Hospitality passed above its 200-day moving average of $24.41, trading as high as $26.06 and last at $25.80 on volume of 62,144 shares.
• Analyst/earnings signal: The consensus rating remains a Sell (Weiss reissued "sell (d)"), and the company posted a large EPS miss of ($0.63) versus a $1.81 estimate despite a slight revenue beat.
• Dividend update: RCI raised its quarterly dividend to $0.08 (annualized $0.32), implying a 1.2% yield and a payout ratio of 26.67%.

RCI Hospitality Holdings, Inc. (NASDAQ:RICK - Get Free Report) passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $24.41 and traded as high as $26.06. RCI Hospitality shares last traded at $25.80, with a volume of 62,144 shares.

Wall Street Analysts Forecast Growth

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

RCI Hospitality Trading Up 0.5%

The company has a current ratio of 0.81, a quick ratio of 0.73 and a debt-to-equity ratio of 0.82. The stock has a market capitalization of $198.92 million, a price-to-earnings ratio of 21.50 and a beta of 0.77. The firm has a 50-day moving average of $23.21 and a 200 day moving average of $24.41.

RCI Hospitality (NASDAQ:RICK - Get Free Report) last posted its earnings results 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 business had revenue of $70.93 million during the quarter, compared to analyst estimates of $69.80 million.

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 $0.08 dividend. The ex-dividend date was Monday, March 16th. This represents a $0.32 annualized dividend and a yield of 1.2%. This is an increase from RCI Hospitality's previous quarterly dividend of $0.07. RCI Hospitality's payout ratio is 26.67%.

Institutional Trading of RCI Hospitality

Several large investors have recently added to or reduced their stakes in RICK. BNP Paribas Financial Markets increased its position in RCI Hospitality by 62.0% in the 2nd quarter. BNP Paribas Financial Markets now owns 847 shares of the restaurant operator's stock valued at $32,000 after acquiring an additional 324 shares during the period. State of Alaska Department of Revenue acquired a new stake in RCI Hospitality in the 4th quarter valued at approximately $54,000. CWM LLC increased its position in RCI Hospitality by 1,256.9% in the 3rd quarter. CWM LLC now owns 1,954 shares of the restaurant operator's stock valued at $60,000 after acquiring an additional 1,810 shares during the period. State of Wyoming acquired a new stake in RCI Hospitality in the 4th quarter valued at approximately $67,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in RCI Hospitality in the 3rd quarter valued at approximately $115,000. 53.82% of the stock is currently owned by institutional investors and hedge funds.

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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