Insider Buying

Insider Buying Report: RCI Hospitality Holdings Inc (RICK:US)

RCI Hospitality Holdings Inc
(RICK:US)
12 months:
+127%
Activity:
Bullish
Pattern:
Purchase from President/CEO, CFO and Executive Vice President
News:
Q1 2022 sales update
RCI Hospitality Holdings Inc
(RICK:US)
12 months:
+127%
Activity:
Bullish
Pattern:
Purchase from President/CEO, CFO and Executive Vice President
News:
Q1 2022 sales update

When a CEO is buying company stock, it’s often worth taking a closer look. CEOs tend to have the deepest insight into their companies and are often ahead of the curve when it comes to analyzing financial trends within their businesses.

Here, we are going to highlight insider purchases made by the President/CEO and two other insiders at RCI Hospitality Holdings Inc (RICK:US). RCI Hospitality Holdings operates a number of high-end gentlemen’s clubs, nightclubs, and restaurants. It also has a media and events business that focuses on the adult club industry. It’s traded on the Nasdaq Stock Exchange and currently has a market capitalization of $807 million.

RCI Hospitality Holdings Inc: Insider Buying

Our insider transaction data shows that on December 30, three insiders at RCI Hospitality Holdings bought stock. Those who bought shares were:

  • Chairman/President/CEO Eric Langan (1,000 shares @ $78.68 per share)
  • CFO Bradley Chhay (150 shares @ $78.65 per share)
  • Executive Vice President Travis Reese (130 shares at @ $78.80 per share)

In total, the three insiders spent around $100,000 on RCI Hospitality Holdings stock.

Insider Buying and Selling Chart - RCI Hospitality Holdings Inc

High Insider Score

This trading activity caught our eye for two principal reasons.

First of all, several insiders have purchased stock simultaneously. This tells us that confidence at the top of the company is high. Our Insider Model gives the stock a score of 4 out of 5 which indicates that insider sentiment at the company is very positive.

Secondly, Mr. Langan has been involved in the hospitality industry for over thirty years. He has been CEO at RCI Hospitality Holdings for over twenty years which means he is highly likely to know the company better than anyone else.

Strong First Quarter

Following on from a record Q4, RCI Hospitality Holdings released impressive sales figures for the first quarter of fiscal 2022.

Combined sales across its nightclubs and restaurants were up 27.9% compared to Q1 2020 – before the pandemic hit. The restaurants performed particularly strongly with same-store sales in the quarter up 21.1% versus the opening quarter of 2020.

"We had a strong first quarter as we benefited from legacy as well as new locations, namely our 11th Bombshells in Arlington, TX, which opened December 6, and the 12 clubs we acquired mid-October and early November. We didn't experience any noticeable impact from Omicron until late 1Q22 and hope it will cycle through our markets quickly,” said Mr. Langan.

Given its upbeat outlook statement and growing sales figures, we see the recent insider buying at RCI Hospitality Holdings as bullish. It suggests that several key figures at the company expect the share price to keep moving upwards in 2022.

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