Wednesday, May 25, 2022
RCI Hospitality Holdings (RICK)
Ups Buyback Authorization By $25 Million
With more than 50 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in gentlemen’s clubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas-Fort Worth, Houston, Miami, Minneapolis, Denver, St. Louis, Charlotte, Pittsburgh, Raleigh, Louisville, and other markets operate under brand names such as Rick’s Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie’s Cabaret, and Scarlett’s Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Additional Authorization. Yesterday, RCI Hospitality Holdings’ Board of Directors authorized increasing the amount available under the company’s share repurchase program by an additional $25.0 million. Buybacks are one of three uses for free cash flow under the Company’s capital allocation plan and with the shares closing yesterday at $51.58, just above the 52-week low and 45% below the January 52-week high of $94.33, we believe the shares represent an attractive use of capital.
Recent Purchases. Through the first six months of fiscal 2022, RCI repurchased 45,643 shares at a cost of $2.85 million, or about $62.33 per share on average. From fiscal year 2016, when the company started implementing its capital allocation strategy, through the second quarter of fiscal 2022, RCI has invested approximately $25.4 million repurchasing approximately 1.6 million shares at an average of $15.88 per share….
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.