Ruth’s Hospitality Group (RUTH) to Repurchase $60.00 million in Stock
Ruth’s Hospitality Group (NASDAQ:RUTH) declared that its Board of Directors has approved a share buyback program, which authorizes the company to repurchase $60.00 million in outstanding shares on Friday, November 3rd, EventVestor reports. This repurchase authorization authorizes the restaurant operator to repurchase shares of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its shares are undervalued.
A number of equities analysts have commented on the stock. Deutsche Bank AG restated a “buy” rating and issued a $24.00 target price (up from $22.50) on shares of Ruth’s Hospitality Group in a research note on Monday, July 10th. Zacks Investment Research upgraded shares of Ruth’s Hospitality Group from a “sell” rating to a “hold” rating in a research note on Tuesday, October 3rd. BidaskClub downgraded shares of Ruth’s Hospitality Group from a “hold” rating to a “sell” rating in a research note on Friday, July 28th. Raymond James Financial, Inc. restated a “market perform” rating on shares of Ruth’s Hospitality Group in a research note on Tuesday, July 25th. Finally, Jefferies Group LLC restated a “hold” rating and issued a $20.00 target price on shares of Ruth’s Hospitality Group in a research note on Sunday, July 30th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and one has issued a buy rating to the company. Ruth’s Hospitality Group presently has a consensus rating of “Hold” and an average target price of $22.00.
Shares of Ruth’s Hospitality Group (NASDAQ:RUTH) traded up $0.75 on Friday, hitting $21.25. 407,111 shares of the stock traded hands, compared to its average volume of 178,152. The company has a current ratio of 0.37, a quick ratio of 0.26 and a debt-to-equity ratio of 0.24. The stock has a market cap of $623.35 million, a PE ratio of 20.50, a PEG ratio of 1.35 and a beta of 0.34.
Ruth’s Hospitality Group (NASDAQ:RUTH) last posted its earnings results on Friday, November 3rd. The restaurant operator reported $0.06 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.09 by ($0.03). Ruth’s Hospitality Group had a return on equity of 37.86% and a net margin of 7.97%. The company had revenue of $85.16 million during the quarter, compared to analyst estimates of $87.20 million. During the same quarter last year, the firm posted $0.10 earnings per share. The firm’s revenue for the quarter was up 1.7% compared to the same quarter last year. analysts anticipate that Ruth’s Hospitality Group will post 1.07 earnings per share for the current year.
The business also recently announced a dividend, which will be paid on Wednesday, November 22nd. Investors of record on Thursday, November 9th will be issued a $0.09 dividend. This is a positive change from Ruth’s Hospitality Group’s previous dividend of $0.06. The ex-dividend date is Wednesday, November 8th. Ruth’s Hospitality Group’s payout ratio is 35.64%.
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About Ruth’s Hospitality Group
Ruth’s Hospitality Group, Inc develops and operates fine dining restaurants under the name, Ruth’s Chris Steak House. The Company operates through two segments. As of December 25, 2016, the Company-owned steakhouse restaurant segment included 68 Ruth’s Chris Steak House restaurants and one Ruth’s Chris Steak House restaurant, and the franchise operations segment included 81 franchisee-owned Ruth’s Chris Steak House restaurants.
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