We recently compiled a list of the 11 Most Expensive Stocks Insiders Are Buying Recently. In this article, we are going to take a look at where RCI Hospitality Holdings, Inc. (NASDAQ:RICK) stands against the other expensive stocks. We previously covered the 10 cheapest stocks insiders are buying recently.
The broader market returned around 21% over the past 12 months, and it is also doing well this year. Since the beginning of the year, it has moved 3.45%. As the January effect starts to cool off, we thought it could be useful to look into some of the stocks that insiders have recently not been shy to spend money on. Instead of the standard P/E ratio, today we decided to focus on the average price per share.
Why are expensive stocks worth considering? High-priced stocks are often perceived as more reliable long-term investments due to the belief that their higher price reflects a history of strong performance and lower volatility. While in investing there is not a single rule that guarantees results, taking more factors into account, such as price, insider trading activity, recent results, analyst coverage, and recent company moves and strategies, might help.
Both insider selling and buying can be driven by various motives that’s why it is important to consider these moves within the broader context of the company’s fundamentals, industry trends, and overall market conditions. Due diligence before any investment is of crucial importance. However, insider trading activity, combined with other relevant factors, can provide valuable insights into a company’s capabilities, helping investors make more informed decisions.
What are some of the most expensive stocks insiders have been buying over the last 30 days? To find out, we used Insider Monkey’s insider trading stock screener, focusing only on stocks where at least two insiders had purchased shares recently. From there, we ranked the 10 stocks with the highest average price per share.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
With each stock, we note the average price per share of these purchases and the stock’s market capitalization.
A bustling nightclub filled with energy, illuminated by mesmerizing lights and the thumping beat of the dance music.
RCI Hospitality Holdings, Inc. (NASDAQ:RICK)
Average price per share: $50.77
Market capitalization: $474.99 million
RCI Hospitality Holdings, Inc. (NASDAQ:RICK) is a publicly traded owner and operator of adult nightclubs and sports bar restaurants. It was founded in 1983 as Rick’s Cabaret International and went public in 1995. The company changed its name to RCI Hospitality Holdings in 2014. The Houston, Texas-headquartered company runs elegant gentlemen’s clubs with entertainers and exclusive restaurants.
Insider Monkey previously covered a bull case theory on this stock. In summary, the thesis praises the company’s strong shareholder value creation through share buybacks – RCI Hospitality Holdings retired 401,093 shares (around 4.5% of outstanding shares) as of August 2023. In September, the company raised its dividend payments by 16.7% to $0.07 per share. The bull case for nightclub operators also presents the launch of AdmireMe, a competitor to OnlyFans, which is expected to digitally expand the company’s operations.
In February, two insiders, including the president and CEO bought a total of around $60,487 worth of RCI Hospitality Holdings, for an average price of $50.77 per share. Out of the total amount acquired, the CEO, Scott Eric Langan, purchased 1,000 shares, increasing his holdings to 704,000 shares.
Since the beginning of the year, the stock lost 6.79% and is now trading at $53.57. Over the last 12 months, its shares dropped 4.10%.
One Wall Street analyst has a “Moderate Buy” rating on RCI Hospitality Holdings, Inc. (NASDAQ:RICK) stock, and a 12-month price target of $98.00. This represents an increase of 82.94% from the previous price, according to data from TipRanks.
Overall RICK ranks 10th on our list of the most expensive stocks insiders are buying recently. While we acknowledge the potential of RICK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RICK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
