Zacks Investment Research cut shares of Royal Caribbean Cruises (NYSE:RCL) from a buy rating to a hold rating in a research report report published on Tuesday morning.

According to Zacks, “Shares of Royal Caribbean have outperformed the industry in the past three months. Shares are likely to continue gaining after the company reported better-than-expected earnings in the fourth quarter of 2018. With this, it posted earnings beat for the 16th straight quarter. Earnings not only surpassed the Zacks Consensus Estimate but also grew year over year, backed by higher revenues. Higher passenger ticket, as well as onboard and other revenues, aided overall top line. Solid booking trend is anticipated to continue in 2019. Furthermore, earnings estimates for 2019 have been revised upward over the past month. Nonetheless, higher costs might hurt profitability in the near term. Global uncertainties and tricky consumer discretionary spending are added concerns for Royal Caribbean.”

RCL has been the subject of several other reports. ValuEngine lowered Royal Caribbean Cruises from a hold rating to a sell rating in a research note on Friday, January 4th. Tigress Financial reiterated a buy rating on shares of Royal Caribbean Cruises in a research note on Friday, December 7th. Wells Fargo & Co upped their target price on Royal Caribbean Cruises from $145.00 to $155.00 and gave the company an outperform rating in a research note on Monday, February 25th. Finally, Wolfe Research set a $151.00 price target on Royal Caribbean Cruises and gave the stock a buy rating in a research note on Tuesday, December 11th. One analyst has rated the stock with a sell rating, four have issued a hold rating and ten have given a buy rating to the stock. The company has a consensus rating of Buy and a consensus target price of $140.92.

Royal Caribbean Cruises stock opened at $116.45 on Tuesday. The firm has a market capitalization of $24.33 billion, a P/E ratio of 13.14, a price-to-earnings-growth ratio of 0.84 and a beta of 1.53. Royal Caribbean Cruises has a 52 week low of $89.48 and a 52 week high of $133.60. The company has a quick ratio of 0.15, a current ratio of 0.17 and a debt-to-equity ratio of 0.75.

Royal Caribbean Cruises (NYSE:RCL) last released its earnings results on Wednesday, January 30th. The company reported $1.53 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.51 by $0.02. The firm had revenue of $2.33 billion during the quarter, compared to analyst estimates of $2.31 billion. Royal Caribbean Cruises had a return on equity of 17.08% and a net margin of 19.08%. The business’s quarterly revenue was up 16.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $7.53 earnings per share. Research analysts predict that Royal Caribbean Cruises will post 9.97 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, April 5th. Shareholders of record on Thursday, March 7th will be paid a dividend of $0.70 per share. The ex-dividend date is Wednesday, March 6th. This represents a $2.80 annualized dividend and a yield of 2.40%. Royal Caribbean Cruises’s dividend payout ratio is presently 31.60%.

In other Royal Caribbean Cruises news, SVP Bradley H. Stein sold 5,909 shares of the company’s stock in a transaction dated Tuesday, March 5th. The stock was sold at an average price of $119.27, for a total transaction of $704,766.43. Following the completion of the sale, the senior vice president now directly owns 19,874 shares in the company, valued at $2,370,371.98. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Michael W. Bayley sold 7,115 shares of the company’s stock in a transaction dated Tuesday, February 12th. The stock was sold at an average price of $116.15, for a total value of $826,407.25. The disclosure for this sale can be found here. Insiders have sold 69,447 shares of company stock valued at $8,271,277 over the last 90 days. 15.26% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its position in shares of Royal Caribbean Cruises by 0.5% in the third quarter. Vanguard Group Inc. now owns 17,531,729 shares of the company’s stock worth $2,278,073,000 after buying an additional 80,826 shares during the period. Vanguard Group Inc boosted its position in shares of Royal Caribbean Cruises by 0.5% in the third quarter. Vanguard Group Inc now owns 17,531,729 shares of the company’s stock worth $2,278,073,000 after buying an additional 80,826 shares during the period. BlackRock Inc. boosted its position in shares of Royal Caribbean Cruises by 2.3% in the fourth quarter. BlackRock Inc. now owns 10,873,450 shares of the company’s stock worth $1,063,315,000 after buying an additional 245,608 shares during the period. Dimensional Fund Advisors LP boosted its position in shares of Royal Caribbean Cruises by 3.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,530,247 shares of the company’s stock worth $247,407,000 after buying an additional 77,740 shares during the period. Finally, Geode Capital Management LLC boosted its position in shares of Royal Caribbean Cruises by 8.2% in the fourth quarter. Geode Capital Management LLC now owns 2,198,984 shares of the company’s stock worth $214,659,000 after buying an additional 166,909 shares during the period. 70.53% of the stock is owned by institutional investors.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd. operates as a cruise company. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises, and Silversea Cruises brands. The Royal Caribbean International brand provides itineraries to destinations worldwide, including Alaska, Asia, Australia, Bahamas, Bermuda, Canada, the Caribbean, Europe, the Panama Canal, and New Zealand with cruise lengths that range from 2 to 23 nights.

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