Royal Caribbean Cruises (NYSE:RCL) Shares Gap Down After Insider Selling

Shares of Royal Caribbean Cruises Ltd. (NYSE:RCL) gapped down before the market opened on Tuesday following insider selling activity. The stock had previously closed at $254.03, but opened at $248.35. Royal Caribbean Cruises shares last traded at $249.17, with a volume of 178,388 shares.

Specifically, Director Richard D. Fain sold 19,600 shares of Royal Caribbean Cruises stock in a transaction that occurred on Monday, May 19th. The shares were sold at an average price of $253.10, for a total value of $4,960,760.00. Following the transaction, the director now owns 165,421 shares of the company’s stock, valued at $41,868,055.10. The trade was a 10.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link.

Analyst Ratings Changes

RCL has been the subject of several research analyst reports. Barclays increased their price objective on Royal Caribbean Cruises from $249.00 to $263.00 and gave the stock an “overweight” rating in a research note on Wednesday, April 30th. Wells Fargo & Company upped their target price on Royal Caribbean Cruises from $232.00 to $272.00 and gave the stock an “overweight” rating in a research report on Monday, January 27th. Truist Financial boosted their price objective on shares of Royal Caribbean Cruises from $272.00 to $275.00 and gave the stock a “buy” rating in a research note on Monday. BNP Paribas began coverage on Royal Caribbean Cruises in a research report on Thursday, March 27th. They issued an “outperform” rating and a $262.00 price target on the stock. Finally, Susquehanna lowered their price objective on shares of Royal Caribbean Cruises from $295.00 to $275.00 and set a “positive” rating on the stock in a research note on Wednesday, April 30th. Four investment analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $271.95.

Royal Caribbean Cruises Trading Down 4.6%

The firm has a market cap of $64.57 billion, a P/E ratio of 22.24, a price-to-earnings-growth ratio of 0.90 and a beta of 2.12. The company has a current ratio of 0.17, a quick ratio of 0.15 and a debt-to-equity ratio of 2.39. The company’s fifty day moving average price is $214.31 and its two-hundred day moving average price is $230.60.

Royal Caribbean Cruises (NYSE:RCL) last issued its quarterly earnings data on Tuesday, April 29th. The company reported $2.71 earnings per share for the quarter, topping the consensus estimate of $2.53 by $0.18. The firm had revenue of $4 billion for the quarter, compared to analysts’ expectations of $4.02 billion. Royal Caribbean Cruises had a net margin of 17.46% and a return on equity of 48.97%. The company’s quarterly revenue was up 7.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.77 earnings per share. As a group, sell-side analysts predict that Royal Caribbean Cruises Ltd. will post 14.9 EPS for the current fiscal year.

Royal Caribbean Cruises Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 3rd. Investors of record on Wednesday, June 4th will be issued a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a yield of 1.26%. Royal Caribbean Cruises’s dividend payout ratio is 24.92%.

Royal Caribbean Cruises declared that its Board of Directors has initiated a stock buyback plan on Wednesday, February 12th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to buy up to 1.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On Royal Caribbean Cruises

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Venturi Wealth Management LLC raised its holdings in shares of Royal Caribbean Cruises by 511.0% in the fourth quarter. Venturi Wealth Management LLC now owns 2,157 shares of the company’s stock valued at $498,000 after buying an additional 1,804 shares during the last quarter. Lorne Steinberg Wealth Management Inc. acquired a new stake in Royal Caribbean Cruises in the 4th quarter valued at about $231,000. Geode Capital Management LLC raised its stake in shares of Royal Caribbean Cruises by 6.3% in the fourth quarter. Geode Capital Management LLC now owns 5,969,532 shares of the company’s stock worth $1,373,856,000 after acquiring an additional 353,893 shares during the last quarter. Principal Financial Group Inc. lifted its position in shares of Royal Caribbean Cruises by 2.7% during the fourth quarter. Principal Financial Group Inc. now owns 291,027 shares of the company’s stock worth $67,137,000 after purchasing an additional 7,740 shares in the last quarter. Finally, Dorsey Wright & Associates acquired a new position in shares of Royal Caribbean Cruises during the fourth quarter worth approximately $4,221,000. Institutional investors and hedge funds own 87.53% of the company’s stock.

About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd.