Street Calls of the Week
Elaine Johnson Martin, a director at RCI Hospitality Holdings, Inc. (NASDAQ:RICK), recently purchased 195 shares of the company’s common stock. The company, which boasts impressive gross profit margins of 84.7%, has maintained dividend payments for nine consecutive years, according to InvestingPro data. The shares were bought on February 14 at a price of $51 per share, totaling $9,945. This acquisition brings Martin’s total holdings to 11,379 shares. RCI Hospitality, based in Houston, Texas, operates in the retail-eating places industry. With a market capitalization of $476 million and trading at a P/E ratio of 99.1, InvestingPro analysis suggests the stock is currently slightly undervalued. Access the comprehensive Pro Research Report, available for RICK and 1,400+ other US stocks, for deeper insights into the company’s financial health and growth prospects.
In other recent news, RCI Hospitality has been the subject of several notable developments. H.C. Wainwright maintained a Buy rating on RCI Hospitality, projecting a price target of $98. This follows the company’s strategy to open three new restaurant properties in 2025, which analysts expect to significantly contribute to fiscal year 2025 revenue.
Additionally, RCI Hospitality announced a change in its independent registered public accounting firm, transitioning from Marcum LLP to CBIZ (NYSE:CBZ) CPAs P.C. This change does not reflect any disputes or issues with the quality of Marcum LLP’s audit work.
In terms of acquisitions, RCI Hospitality recently purchased Flight Club, a prominent gentlemen’s club in the Detroit area, for $11 million. This acquisition is expected to add approximately $2 million to its annualized adjusted EBITDA.
Furthermore, RCI Hospitality disclosed mixed fiscal first-quarter sales, with an increase in same-store sales for its nightclubs and a decline for its Bombshells restaurant chain. Total (EPA:TTEF) sales for the quarter were $70.9 million, a decrease of 3.3% from the previous year.
Lastly, H.C. Wainwright reaffirmed its Buy rating on RCI Hospitality following the company’s strong fourth-quarter results for fiscal year 2024. The company’s adjusted EBITDA notably exceeded expectations, coming in at $17.9 million compared to the forecasted $13.9 million.
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