Investors Buy Large Volume of Put Options on RCI Hospitality (NASDAQ:RICK)

Key Points

• RCI Hospitality Holdings experienced an unusual surge in options trading, with 2,457 put options being bought, a dramatic increase of approximately 2,263% from its average daily volume.
• Institutional investors have shown significant interest; for instance, BNP Paribas Financial Markets increased its stake by 62% and GAMMA Investing LLC by a staggering 13,400%.
• RCI Hospitality reported a quarterly loss with an EPS of $0.46, missing the estimate of $1.24, while revenue reached $71.15 million, slightly exceeding expectations.

RCI Hospitality Holdings, Inc. (NASDAQ:RICK - Get Free Report) was the recipient of some unusual options trading on Wednesday. Investors acquired 2,457 put options on the stock. This is an increase of approximately 2,263% compared to the typical daily volume of 104 put options.

RCI Hospitality Price Performance

Shares of RICK traded down $0.87 during midday trading on Friday, reaching $27.30. The stock had a trading volume of 317,379 shares, compared to its average volume of 270,428. The firm's 50 day moving average price is $35.99 and its 200-day moving average price is $39.39. The company has a market capitalization of $238.06 million, a P/E ratio of 14.68 and a beta of 1.17. The company has a debt-to-equity ratio of 0.83, a current ratio of 0.92 and a quick ratio of 0.83. RCI Hospitality has a 52 week low of $25.15 and a 52 week high of $61.66.

RCI Hospitality (NASDAQ:RICK - Get Free Report) last announced its earnings results on Monday, August 11th. The restaurant operator reported $0.46 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.24 by ($0.78). The company had revenue of $71.15 million for the quarter, compared to analyst estimates of $70.50 million. RCI Hospitality had a return on equity of 6.19% and a net margin of 5.88%. On average, analysts forecast that RCI Hospitality will post 4.55 earnings per share for the current fiscal year.

RCI Hospitality Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Tuesday, September 16th will be paid a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Tuesday, September 16th. RCI Hospitality's dividend payout ratio is 15.05%.

Hedge Funds Weigh In On RCI Hospitality

Several large investors have recently added to or reduced their stakes in the company. American Century Companies Inc. raised its holdings in shares of RCI Hospitality by 16.3% in the 2nd quarter. American Century Companies Inc. now owns 186,066 shares of the restaurant operator's stock worth $7,093,000 after buying an additional 26,110 shares in the last quarter. AQR Capital Management LLC increased its stake in shares of RCI Hospitality by 12.8% in the 1st quarter. AQR Capital Management LLC now owns 25,938 shares of the restaurant operator's stock valued at $1,114,000 after buying an additional 2,934 shares during the period. Nuveen LLC bought a new position in shares of RCI Hospitality in the 1st quarter worth $1,004,000. Marshall Wace LLP boosted its position in shares of RCI Hospitality by 324.7% in the 2nd quarter. Marshall Wace LLP now owns 23,087 shares of the restaurant operator's stock worth $880,000 after purchasing an additional 17,651 shares during the last quarter. Finally, TT Capital Management LLC bought a new position in RCI Hospitality during the second quarter worth about $766,000. Institutional investors and hedge funds own 53.82% of the company's stock.

About RCI Hospitality

RCI Hospitality Holdings, Inc, through its subsidiaries, engages in the hospitality and related businesses in the United States. It operates in Nightclubs, Bombshells, and Media Group segments. The company's wholly-owned subsidiaries own 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, Scarlett's Cabaret, Temptations Adult Cabaret, Foxy's Cabaret, Vivid Cabaret, Downtown Cabaret, Cabaret East, The Seville, Silver City Cabaret, and Kappa Men's Club.