Stock News Recap: RCI Hospitality Holdings, Inc. (NASDAQ:RICK)

RCI Hospitality Holdings, Inc. (NASDAQ:RICK) stock recorded a change of -7.69% away from 50 day moving average and -9.73% away from 200 day moving average. Moving closer, we can see that shares have been trading -0.17% off 20-day moving average. The stock recently spotted trading -22.27% off 52-week high price. On the other end, the stock has been noted 7.16% away from low price over the last 52-weeks. It has market cap of $260.24M and dividend yield of 0.44%.

RCI Hospitality Holdings, Inc. (NASDAQ:RICK) reported subsidiaries have completed the acquisition of VIP’s Gentlemen’s Club and its real estate at 1531 N. Kingsbury St. in Chicago on the same terms as previously announced.

Plans include renaming the club Rick’s Cabaret; positioning it as a premier establishment similar to the No. 1 Rick’s location in New York City, which attracts local, national and international guests; opening three hours earlier, at 4 PM, in the coming weeks; and opening for lunch in early 2019.

Eric Langan, President & CEO of RCI said “Chicago is perfect for the Rick’s brand”. “It is a major metro market and business hub, features leading teams in pro sports, and is a top convention city. With its ability to generate $2 million annually in adjusted EBITDA, this location also fits perfectly with our goal of acquiring profitable, cash-flowing number one locations.”

The 10,000-square-foot upscale club is one of only three in Chicago and the only one with a full liquor license. It has grandfathered use and has been one of the top venues of its kind in the Midwest since 1993. Open until 4 AM Sunday through Friday nights and 5 AM on Saturday nights, the club is near Chicago’s chic Lincoln Park neighborhood and minutes away from the city’s renowned North Michigan Avenue and Gold Coast.

Consideration for the club was $2.0 million in cash and $4.5 million in 7.00%, 6-year, fully amortizing seller financing. Consideration for the real estate, which consists of the building and land, was $4.0 million in cash. The cash portion of the transactions was funded through available cash, which includes cash from operations, proceeds from a $5.0 million unsecured bank term loan, and third-party debt financing, as previously announced.

The USA based company RCI Hospitality Holdings moved with change of 3.44% to $27.08 with the total traded volume of 16873 shares in recent session versus to an average volume of 32K. The stock was observed in the 5 days activity at 4.76%. The one month performance of stock was -4.38%. RICK’s shares are at -15.98% for the quarter and driving a -0.62% return over the course of the past year and is now at -3.22% since this point in 2018.

Right now the stock beta is 0.9. The average volatility for the week and month was at 3.47% and 3.86% respectively. There are 9.61M shares outstanding and 8.99M shares are floated in market.

About the Author

Kyle Webster
Kyle Webster
Kyle Webster is a self taught investor and follows the value investing approach to picking stocks. He possesses over 10 years of investment experience, an M.B.A. from Louisiana State University, and is also certified in Risk Management Assurance. Kyle is a Certified Internal Auditor, Data Miner, and author with a career broadly spanning over multiple business areas. He has exploited those observations and developed investment tactics within a fundamentally sound long-term investment strategy. He currently covers Research News category for our site. He can be reached via Email Contact -  kyle@mostvolatilestocks.com.

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