Primecap Management Co. CA Trims Stake in Royal Caribbean Cruises Ltd. $RCL

Primecap Management Co. CA reduced its holdings in Royal Caribbean Cruises Ltd. (NYSE:RCL) by 13.2% during the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 2,756,921 shares of the company’s stock after selling 418,747 shares during the quarter. Primecap Management Co. CA’s holdings in Royal Caribbean Cruises were worth $892,084,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of the business. California Public Employees Retirement System increased its holdings in shares of Royal Caribbean Cruises by 11.1% in the 2nd quarter. California Public Employees Retirement System now owns 433,018 shares of the company’s stock worth $135,595,000 after buying an additional 43,184 shares during the last quarter. Y Intercept Hong Kong Ltd bought a new stake in shares of Royal Caribbean Cruises during the 3rd quarter worth $4,806,000. Marion Wealth Management bought a new stake in shares of Royal Caribbean Cruises during the 2nd quarter worth $291,000. Vanguard Group Inc. grew its position in Royal Caribbean Cruises by 1.6% in the third quarter. Vanguard Group Inc. now owns 30,066,167 shares of the company’s stock worth $9,728,810,000 after acquiring an additional 461,990 shares in the last quarter. Finally, Nordea Investment Management AB increased its stake in Royal Caribbean Cruises by 253.7% in the third quarter. Nordea Investment Management AB now owns 556,061 shares of the company’s stock valued at $179,241,000 after acquiring an additional 398,849 shares during the last quarter. Hedge funds and other institutional investors own 87.53% of the company’s stock.

Trending Headlines about Royal Caribbean Cruises

Here are the key news stories impacting Royal Caribbean Cruises this week:

• Positive Sentiment: Technical momentum — RCL recently broke out above its 50‑day moving average (short-term bullish signal) which can attract momentum buyers. RCL broke out above 50-day MA
• Positive Sentiment: Capital returns & growth investments — company plans (new Discovery‑class ships), a $2.0B buyback authorization and a raised quarterly dividend increase shareholder returns and support longer‑term valuation. Valuation, new ships and Mexico investments
• Neutral Sentiment: Peer/sector context — Norwegian Cruise (NCLH) Q4 commentary (occupancy/pricing trends) provides industry read-throughs that could influence RCL sentiment around upcoming results or bookings. NCLH Q4 preview
• Neutral Sentiment: Longer-term legal uncertainty — Supreme Court cases on maritime compensation (Cuba-related) are noted but represent longer‑term legal/regulatory risk rather than an immediate earnings shock. Supreme Court maritime cases
• Negative Sentiment: Large insider selling — director Arne Alexander Wilhelmsen has sold several large blocks this month (multiple Form 4s totaling hundreds of thousands of shares and tens of millions in proceeds), a signal that often weighs on sentiment. Insider selling report
• Negative Sentiment: Hedging/bear bets rising — reports of unusual put buying suggest elevated downside hedging or bearish interest that can amplify near‑term weakness. Options/put activity
• Negative Sentiment: Operational disruption & macro risk — cruise itinerary cancellations (Puerto Vallarta) and renewed tariff/trade volatility raise the risk of reroutes, extra costs and weaker travel demand for cyclical leisure names. Cruise cancellations in Mexico

Insiders Place Their Bets

In other news, Director Arne Alexander Wilhelmsen sold 345,111 shares of Royal Caribbean Cruises stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $315.73, for a total value of $108,961,896.03. Following the sale, the director directly owned 17,207,517 shares in the company, valued at approximately $5,432,929,342.41. This trade represents a 1.97% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Laura H. Bethge sold 7,854 shares of the business’s stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $326.21, for a total value of $2,562,053.34. Following the transaction, the insider directly owned 32,786 shares in the company, valued at $10,695,121.06. This trade represents a 19.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 1,195,712 shares of company stock worth $383,111,652. Corporate insiders own 6.95% of the company’s stock.

Royal Caribbean Cruises Trading Down 1.1%

NYSE:RCL opened at $312.94 on Thursday. The firm has a market capitalization of $84.66 billion, a P/E ratio of 20.05, a P/E/G ratio of 1.03 and a beta of 1.91. The company has a quick ratio of 0.16, a current ratio of 0.18 and a debt-to-equity ratio of 1.77. The company has a fifty day moving average of $303.62 and a 200 day moving average of $303.19. Royal Caribbean Cruises Ltd. has a 52 week low of $164.01 and a 52 week high of $366.50.

Royal Caribbean Cruises (NYSE:RCL) last released its quarterly earnings data on Thursday, January 29th. The company reported $2.80 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $2.80. The firm had revenue of $4.26 billion for the quarter, compared to analysts’ expectations of $4.28 billion. Royal Caribbean Cruises had a net margin of 23.80% and a return on equity of 45.06%. The company’s revenue for the quarter was up 13.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.63 earnings per share. On average, research analysts predict that Royal Caribbean Cruises Ltd. will post 14.9 earnings per share for the current year.

Royal Caribbean Cruises declared that its Board of Directors has approved a stock buyback program on Wednesday, December 10th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the company to purchase up to 2.6% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s management believes its shares are undervalued.

Royal Caribbean Cruises Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 3rd. Shareholders of record on Friday, March 6th will be given a dividend of $1.50 per share. This represents a $6.00 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Friday, March 6th. This is a positive change from Royal Caribbean Cruises’s previous quarterly dividend of $1.00. Royal Caribbean Cruises’s dividend payout ratio is currently 25.62%.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Tigress Financial raised their price target on Royal Caribbean Cruises from $415.00 to $425.00 and gave the company a “buy” rating in a research report on Friday, February 6th. Morgan Stanley increased their price target on shares of Royal Caribbean Cruises from $290.00 to $330.00 and gave the company an “equal weight” rating in a research report on Tuesday, February 3rd. UBS Group lowered their price objective on shares of Royal Caribbean Cruises from $353.00 to $304.00 and set a “buy” rating for the company in a report on Wednesday, November 12th. Wall Street Zen cut shares of Royal Caribbean Cruises from a “buy” rating to a “hold” rating in a research note on Saturday, November 1st. Finally, JPMorgan Chase & Co. increased their target price on shares of Royal Caribbean Cruises from $368.00 to $371.00 and gave the company an “overweight” rating in a report on Monday, February 2nd. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $348.29.

Royal Caribbean Cruises Profile

Royal Caribbean Cruises (NYSE: RCL), operating as part of the Royal Caribbean Group, is a global cruise company that develops, markets and operates passenger cruise ships. The company operates multiple consumer-facing cruise brands that offer short- and long-duration itineraries and a range of onboard experiences. Its core activities include itineraries and voyage operations, guest services and hospitality, onboard food and beverage, entertainment and recreation programming, and the commercial activities needed to sell and support cruises through both direct and travel‑agent channels.

Royal Caribbean’s ships serve a broad set of geographies worldwide, regularly deploying vessels in the Caribbean, North America (including Alaska), Europe, Asia, Australia and South America.