Royal Caribbean Cruises Ltd. (RCL) Upgraded to Hold at Zacks Investment Research
According to Zacks, “Royal Caribbean is expected to deliver solid results going forward, backed by strong booking trends, technological innovation, capacity growth and various profit-generating initiatives. The company’s North American products and Asia itineraries are likely to continue performing well as has been the case over the past few quarters. Also, the company’s decision to invest in the fast-growing Chinese cruise markets is commendable. However, higher marketing and promotional spend, along with increased cruise costs, might hurt margins in the near term. Further, despite the growth opportunities, lingering global uncertainties in China and Europe and negative forex translations is likely to impact the company’s profits. Although the company has a positive record of earnings surprises in the recent quarters, estimates have been going down ahead of the company’s Q3 earnings release.”
A number of other research firms have also issued reports on RCL. Citigroup Inc. reissued a buy rating and set a $95.00 price target on shares of Royal Caribbean Cruises in a report on Wednesday, August 24th. Deutsche Bank AG assumed coverage on Royal Caribbean Cruises in a report on Thursday, September 29th. They issued a hold rating and a $81.00 price objective on the stock. Nomura reaffirmed a buy rating and issued a $83.00 price objective on shares of Royal Caribbean Cruises in a report on Wednesday, September 14th. Credit Suisse Group AG reaffirmed a buy rating and issued a $100.00 price objective on shares of Royal Caribbean Cruises in a report on Wednesday, August 3rd. Finally, Sanford C. Bernstein assumed coverage on Royal Caribbean Cruises in a report on Thursday, September 8th. They issued an outperform rating and a $90.00 price objective on the stock. Six analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company. The company has a consensus rating of Buy and an average price target of $92.86.
Shares of Royal Caribbean Cruises (NYSE:RCL) opened at 74.57 on Monday. The stock has a 50 day moving average price of $70.10 and a 200-day moving average price of $73.74. Royal Caribbean Cruises has a 52-week low of $64.21 and a 52-week high of $103.40. The stock has a market capitalization of $16.05 billion, a price-to-earnings ratio of 21.28 and a beta of 1.65.
Royal Caribbean Cruises (NYSE:RCL) last released its quarterly earnings results on Tuesday, August 2nd. The company reported $1.09 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.02 by $0.07. Royal Caribbean Cruises had a return on equity of 14.76% and a net margin of 9.05%. The firm had revenue of $2.11 billion for the quarter, compared to analyst estimates of $2.17 billion. During the same quarter last year, the company posted $0.84 earnings per share. The business’s revenue was up 2.3% on a year-over-year basis. On average, equities research analysts predict that Royal Caribbean Cruises will post $6.07 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 13th. Investors of record on Thursday, September 29th will be paid a dividend of $0.48 per share. This is a positive change from Royal Caribbean Cruises’s previous quarterly dividend of $0.38. The ex-dividend date of this dividend is Tuesday, September 27th. This represents a $1.92 annualized dividend and a yield of 2.57%. Royal Caribbean Cruises’s dividend payout ratio is 55.01%.
In related news, CEO Michael W. Bayley sold 12,183 shares of the stock in a transaction dated Thursday, August 11th. The shares were sold at an average price of $71.07, for a total transaction of $865,845.81. Following the sale, the chief executive officer now owns 82,943 shares in the company, valued at $5,894,759.01. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Richard D. Fain acquired 29,190 shares of the company’s stock in a transaction that occurred on Wednesday, August 3rd. The shares were acquired at an average price of $68.52 per share, for a total transaction of $2,000,098.80. Following the purchase, the chief executive officer now owns 1,068,881 shares of the company’s stock, valued at $73,239,726.12. The disclosure for this purchase can be found here. Corporate insiders own 16.80% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in the company. Carnick & Kubik LLC purchased a new position in Royal Caribbean Cruises during the first quarter valued at approximately $1,021,000. Aviva PLC boosted its position in Royal Caribbean Cruises by 4.7% in the first quarter. Aviva PLC now owns 78,365 shares of the company’s stock valued at $6,438,000 after buying an additional 3,526 shares during the period. Landscape Capital Management L.L.C. boosted its position in Royal Caribbean Cruises by 52.9% in the first quarter. Landscape Capital Management L.L.C. now owns 17,863 shares of the company’s stock valued at $1,467,000 after buying an additional 6,183 shares during the period. Bessemer Group Inc. boosted its position in Royal Caribbean Cruises by 47.8% in the first quarter. Bessemer Group Inc. now owns 1,136,590 shares of the company’s stock valued at $93,371,000 after buying an additional 367,587 shares during the period. Finally, NN Investment Partners Holdings N.V. purchased a new position in Royal Caribbean Cruises during the first quarter valued at approximately $1,108,000. Hedge funds and other institutional investors own 75.04% of the company’s stock.
Royal Caribbean Cruises Company Profile
Royal Caribbean Cruises Ltd. is a cruise company. The Company owns various brands, such as Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisieres de France and joint venture interest in TUI Cruises. It operates approximately 23 ships with an aggregate capacity of approximately 68,600 berths under its Royal Caribbean International brand, offering cruise itineraries that range from 2 to 24 nights.
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