Royal Caribbean Cruises (NYSE:RCL) Given Outperform Rating at BMO Capital Markets

Royal Caribbean Cruises (NYSE:RCL)‘s stock had its “outperform” rating restated by investment analysts at BMO Capital Markets in a research report issued on Wednesday, Benzinga reports. They presently have a $370.00 price target on the stock. BMO Capital Markets’ price objective points to a potential upside of 62.84% from the stock’s previous close.

Several other equities analysts also recently weighed in on the company. Weiss Ratings downgraded Royal Caribbean Cruises from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, September 3rd. Stifel Nicolaus upped their target price on shares of Royal Caribbean Cruises from $410.00 to $415.00 and gave the stock a “buy” rating in a research note on Wednesday, July 29th. UBS Group restated a “buy” rating on shares of Royal Caribbean Cruises in a research note on Wednesday. Freedom Capital cut shares of Royal Caribbean Cruises from a “strong-buy” rating to a “hold” rating in a report on Wednesday, July 29th. Finally, TD Cowen raised shares of Royal Caribbean Cruises to a “strong-buy” rating in a research report on Tuesday, September 8th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $353.40.

Royal Caribbean Cruises Stock Down 3.3%

Shares of RCL traded down $7.67 during mid-day trading on Wednesday, reaching $227.22. The company had a trading volume of 4,832,682 shares, compared to its average volume of 2,524,672. The company has a debt-to-equity ratio of 2.03, a quick ratio of 0.19 and a current ratio of 0.21. The company has a market capitalization of $60.77 billion, a price-to-earnings ratio of 14.04, a price-to-earnings-growth ratio of 0.90 and a beta of 1.74. The firm has a 50-day moving average price of $287.32 and a 200 day moving average price of $282.77. Royal Caribbean Cruises has a 52 week low of $222.22 and a 52 week high of $356.39.

Royal Caribbean Cruises (NYSE:RCL) last posted its quarterly earnings data on Tuesday, July 28th. The company reported $4.21 earnings per share for the quarter, beating analysts’ consensus estimates of $3.98 by $0.23. The company had revenue of $4.83 billion during the quarter, compared to analyst estimates of $4.82 billion. Royal Caribbean Cruises had a return on equity of 43.33% and a net margin of 23.54%.The firm’s revenue for the quarter was up 6.5% on a year-over-year basis. During the same quarter last year, the company earned $4.38 EPS. Royal Caribbean Cruises has set its FY 2026 guidance at 17.730-17.870 EPS and its Q3 2026 guidance at 6.260-6.360 EPS. On average, sell-side analysts forecast that Royal Caribbean Cruises will post 17.78 EPS for the current year.

Insider Activity

In other news, CEO Michael Bayley sold 12,811 shares of the company’s stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $315.99, for a total value of $4,048,147.89. Following the completion of the sale, the chief executive officer directly owned 45,297 shares in the company, valued at $14,313,399.03. This represents a 22.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 6.44% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. State Street Corp grew its stake in shares of Royal Caribbean Cruises by 2.6% during the 2nd quarter. State Street Corp now owns 10,689,134 shares of the company’s stock valued at $3,409,971,000 after acquiring an additional 270,930 shares during the period. Security National Bank of SO Dak purchased a new position in Royal Caribbean Cruises during the second quarter valued at approximately $32,000. Junto Capital Management LP purchased a new position in Royal Caribbean Cruises during the second quarter valued at approximately $85,092,000. Tidal Investments LLC boosted its position in shares of Royal Caribbean Cruises by 13.2% in the second quarter. Tidal Investments LLC now owns 18,163 shares of the company’s stock worth $5,767,000 after purchasing an additional 2,115 shares during the period. Finally, Lunt Capital Management Inc. boosted its position in shares of Royal Caribbean Cruises by 10.8% in the second quarter. Lunt Capital Management Inc. now owns 8,102 shares of the company’s stock worth $2,573,000 after purchasing an additional 792 shares during the period. Institutional investors own 87.53% of the company’s stock.

More Royal Caribbean Cruises News

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

• Positive Sentiment: The partnership expands Royal Caribbean beyond cruise ships into the Caribbean’s all-inclusive resort market, giving it exposure to land-based vacations and potentially broadening its customer relationships and revenue sources. Reuters article
• Positive Sentiment: The joint venture will combine Sandals and Beaches’ resort portfolio with Royal Caribbean’s cruise, private-destination and vacation operations, potentially creating cross-selling opportunities and a more integrated Caribbean travel offering. Royal Caribbean and Sandals partnership announcement
• Neutral Sentiment: Royal Caribbean is making a large investment at a time when its latest quarter showed solid performance, including $4.21 in adjusted earnings per share and $4.83 billion in revenue. However, the deal’s contribution to earnings and the financing details have not yet been fully disclosed. Yahoo Finance article
• Negative Sentiment: Investors appear concerned that Royal Caribbean is paying $3 billion for a non-core expansion, which could increase financial leverage, reduce capital available for fleet investments or shareholder returns, and expose the company to resort-market risks. The stock’s decline reflects skepticism about the deal’s price and near-term strategic rationale. Barron’s article

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd., now operating as Royal Caribbean Group, is a global cruise vacation company headquartered in Miami, Florida. The company provides cruise vacations and related travel experiences through a fleet of ocean-going ships serving destinations across the Caribbean, Europe, Alaska, Asia, Australia and New Zealand, and other regions.

Royal Caribbean Group’s principal brands include Royal Caribbean International, Celebrity Cruises and Silversea. Royal Caribbean International focuses on large-ship vacations featuring entertainment, dining, family activities and onboard attractions; Celebrity Cruises offers premium cruises; and Silversea specializes in luxury and expedition voyages.