Royal Caribbean Cruises Ltd. (NYSE:RCL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Monday.

According to Zacks, “Royal Caribbean generates nearly 50% of its revenues from customers outside the U.S. where a majority pay with local currency. Hence, any unfavorable change in currency would hurt its earnings. In fact, in view of the negative impact from currency, the company slashed its full-year 2016 earnings guidance as well. Moreover, higher marketing and promotional spend, along with increased cruise costs, might hurt margins in the near term. Nonetheless, Royal Caribbean is expected to deliver solid results going forward, backed by strong booking trends, technological innovation, capacity growth and various profit-generating initiatives. Also, the company has positive record of earnings surprises in recent quarters. However, despite the growth opportunities, lingering global uncertainties in China and Europe is likely to impact the company’s international profits. Estimates too have been going down ahead of Royal Caribbean’s Q3 earnings release.”

Other analysts have also recently issued research reports about the stock. Citigroup Inc. reiterated a “buy” rating and set a $95.00 target price on shares of Royal Caribbean Cruises in a research report on Wednesday, August 24th. Credit Suisse Group AG reiterated a “buy” rating and set a $100.00 target price on shares of Royal Caribbean Cruises in a research report on Wednesday, August 3rd. Stifel Nicolaus dropped their target price on shares of Royal Caribbean Cruises from $94.00 to $93.00 and set a “buy” rating for the company in a research report on Wednesday, August 3rd. Nomura reiterated a “buy” rating and set a $83.00 target price on shares of Royal Caribbean Cruises in a research report on Wednesday, September 14th. Finally, Deutsche Bank AG initiated coverage on shares of Royal Caribbean Cruises in a research report on Thursday, September 29th. They set a “hold” rating and a $81.00 target price for the company. One analyst has rated the stock with a sell rating, five have assigned a hold rating and eighteen have assigned a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus target price of $93.12.

Analyst Recommendations for Royal Caribbean Cruises (NYSE:RCL)

Shares of Royal Caribbean Cruises (NYSE:RCL) opened at 70.05 on Monday. The company’s 50 day moving average price is $70.71 and its 200 day moving average price is $73.37. Royal Caribbean Cruises has a one year low of $64.21 and a one year high of $103.40. The stock has a market capitalization of $15.08 billion, a price-to-earnings ratio of 19.99 and a beta of 1.65.

Royal Caribbean Cruises (NYSE:RCL) last posted its quarterly earnings data on Tuesday, August 2nd. The company reported $1.09 earnings per share for the quarter, topping the consensus estimate of $1.02 by $0.07. Royal Caribbean Cruises had a net margin of 9.05% and a return on equity of 14.76%. The firm earned $2.11 billion during the quarter, compared to analysts’ expectations of $2.17 billion. During the same quarter in the previous year, the company posted $0.84 EPS. Royal Caribbean Cruises’s revenue was up 2.3% on a year-over-year basis. On average, analysts expect that Royal Caribbean Cruises will post $6.05 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 13th. Investors of record on Thursday, September 29th were issued a $0.48 dividend. This is an increase from Royal Caribbean Cruises’s previous quarterly dividend of $0.38. The ex-dividend date was Tuesday, September 27th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.74%. Royal Caribbean Cruises’s dividend payout ratio (DPR) is presently 55.01%.

In other news, Director Vagn O. Sorensen bought 1,100 shares of the firm’s stock in a transaction on Thursday, August 18th. The shares were bought at an average price of $70.50 per share, for a total transaction of $77,550.00. Following the purchase, the director now owns 18,871 shares in the company, valued at $1,330,405.50. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Richard D. Fain bought 29,190 shares of the firm’s stock in a transaction on Wednesday, August 3rd. The shares were purchased 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 in the company, valued at approximately $73,239,726.12. The disclosure for this purchase can be found here. 16.80% of the stock is currently owned by corporate insiders.

A number of large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its stake in Royal Caribbean Cruises by 2.3% in the second quarter. Vanguard Group Inc. now owns 15,394,128 shares of the company’s stock worth $1,033,716,000 after buying an additional 344,473 shares during the last quarter. Primecap Management Co. CA boosted its stake in Royal Caribbean Cruises by 31.6% in the second quarter. Primecap Management Co. CA now owns 7,721,989 shares of the company’s stock worth $518,532,000 after buying an additional 1,852,117 shares during the last quarter. State Street Corp boosted its stake in Royal Caribbean Cruises by 0.8% in the first quarter. State Street Corp now owns 6,687,292 shares of the company’s stock worth $549,355,000 after buying an additional 50,919 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in Royal Caribbean Cruises by 1.9% in the second quarter. Dimensional Fund Advisors LP now owns 2,324,669 shares of the company’s stock worth $156,118,000 after buying an additional 44,087 shares during the last quarter. Finally, Bessemer Group Inc. boosted its stake in Royal Caribbean Cruises by 33.9% in the second quarter. Bessemer Group Inc. now owns 1,521,508 shares of the company’s stock worth $102,169,000 after buying an additional 384,918 shares during the last quarter. Institutional investors own 75.04% of the company’s stock.

About Royal Caribbean Cruises

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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