Royal Caribbean Cruises Ltd. (RCL) Upgraded to “Buy” at Zacks Investment Research
Royal Caribbean Cruises Ltd. (NYSE:RCL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The brokerage presently has a $134.00 price objective on the stock. Zacks Investment Research‘s price objective indicates a potential upside of 11.68% from the company’s current price.
According to Zacks, “Royal Caribbean shares have outpaced the industry year to date. The company expects strong revenue growth in 2017 given solid booking trends. Notably, the company’s sailings in the U.S., Europe, Alaska, Baltic and Asia, are likely to continue performing strongly, going forward. Royal Caribbean thus remains positioned to witness another record year and achieve its targets under the Double-Double program. While, its capacity growth should aid in meeting increased demand, ship innovation and technology investments should lead to higher yields. The company has also been successful in dealing with the volatility in fuel prices given its environmental efforts. Yet, higher costs in the near-term and adverse forex translations might hamper its profitability. Despite growth opportunities, lingering global uncertainties in key operating regions are also likely to affect its international profits.”
A number of other equities research analysts have also recently commented on the stock. Deutsche Bank AG decreased their target price on shares of Royal Caribbean Cruises from $102.00 to $91.00 and set a “hold” rating on the stock in a research note on Tuesday, May 2nd. Wedbush lifted their price objective on shares of Royal Caribbean Cruises from $106.00 to $117.00 and gave the company an “outperform” rating in a research report on Tuesday, April 25th. Goldman Sachs Group, Inc. (The) lifted their price objective on shares of Royal Caribbean Cruises from $90.00 to $94.00 and gave the company a “sell” rating in a research report on Monday, May 1st. Wells Fargo & Company reiterated an “outperform” rating and set a $119.50 price objective (up previously from $117.50) on shares of Royal Caribbean Cruises in a research report on Tuesday, May 2nd. Finally, Stifel Nicolaus lifted their price objective on shares of Royal Caribbean Cruises from $115.00 to $125.00 and gave the company a “buy” rating in a research report on Monday, May 1st. Two analysts have rated the stock with a sell rating, two have given a hold rating, eighteen have issued a buy rating and one has issued a strong buy rating to the company. The stock currently has an average rating of “Buy” and an average target price of $117.23.
Shares of Royal Caribbean Cruises (NYSE:RCL) traded up 0.404% during mid-day trading on Tuesday, reaching $120.475. 591,857 shares of the company’s stock traded hands. The stock has a market cap of $25.92 billion, a price-to-earnings ratio of 16.902 and a beta of 1.06. Royal Caribbean Cruises has a 12-month low of $65.10 and a 12-month high of $122.96. The firm’s 50 day moving average price is $114.92 and its 200-day moving average price is $105.63.
Royal Caribbean Cruises (NYSE:RCL) last released its earnings results on Tuesday, August 1st. The company reported $1.71 EPS for the quarter, topping analysts’ consensus estimates of $1.67 by $0.04. Royal Caribbean Cruises had a net margin of 17.73% and a return on equity of 16.71%. The company had revenue of $2.20 billion for the quarter, compared to analysts’ expectations of $2.19 billion. During the same quarter last year, the business earned $1.09 EPS. The firm’s revenue was up 4.3% compared to the same quarter last year. Equities research analysts forecast that Royal Caribbean Cruises will post $7.44 earnings per share for the current year.
Royal Caribbean Cruises announced that its Board of Directors has initiated a share buyback plan on Friday, April 28th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to purchase up to 2.2% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.
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In other news, CEO Richard D. Fain sold 20,000 shares of the business’s stock in a transaction on Thursday, July 13th. The shares were sold at an average price of $109.62, for a total transaction of $2,192,400.00. Following the completion of the sale, the chief executive officer now directly owns 967,741 shares of the company’s stock, valued at $106,083,768.42. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Richard D. Fain sold 210,706 shares of the business’s stock in a transaction on Wednesday, August 2nd. The shares were sold at an average price of $115.83, for a total transaction of $24,406,075.98. Following the sale, the chief executive officer now directly owns 967,741 shares of the company’s stock, valued at $112,093,440.03. The disclosure for this sale can be found here. Insiders have sold 460,079 shares of company stock valued at $53,714,055 over the last three months. Insiders own 15.30% of the company’s stock.
Hedge funds have recently modified their holdings of the stock. Advisors Preferred LLC purchased a new stake in Royal Caribbean Cruises during the first quarter valued at $103,000. TLP Group LLC purchased a new stake in Royal Caribbean Cruises during the second quarter valued at $105,000. NEXT Financial Group Inc increased its stake in Royal Caribbean Cruises by 25.0% in the first quarter. NEXT Financial Group Inc now owns 1,000 shares of the company’s stock valued at $107,000 after buying an additional 200 shares during the last quarter. Acrospire Investment Management LLC increased its stake in Royal Caribbean Cruises by 25.0% in the second quarter. Acrospire Investment Management LLC now owns 1,000 shares of the company’s stock valued at $109,000 after buying an additional 200 shares during the last quarter. Finally, Oppenheimer Asset Management Inc. purchased a new stake in Royal Caribbean Cruises during the first quarter valued at $119,000. 72.26% of the stock is owned by hedge funds and other institutional investors.
Royal Caribbean Cruises Company Profile
Royal Caribbean Cruises Ltd. is a cruise company. The Company owns and operates three global cruise brands: Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises (Global Brands). The Company also own joint venture interest in the German brand TUI Cruises, interest in the Spanish brand Pullmantur and interest in the Chinese brand SkySea Cruises (collectively, Partner Brands).
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