Royal Caribbean Cruises Ltd. (NYSE:RCL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday.
According to Zacks, “Royal Caribbean generates nearly 50% of its revenues from customers outside the U.S. where a majority pay with local currency. Hence, any unfavorable change in currency would hurt its earnings. In fact, in view of the negative impact from currency, the company slashed its full-year 2016 earnings guidance as well. Moreover, higher marketing and promotional spend, along with increased cruise costs, might hurt margins in the near term. Nonetheless, Royal Caribbean is expected to deliver solid results going forward, backed by strong booking trends, technological innovation, capacity growth and various profit-generating initiatives. Also, the company has positive record of earnings surprises in recent quarters. However, despite the growth opportunities, lingering global uncertainties in China and Europe is likely to impact the company’s international profits. Estimates too have been going down ahead of Royal Caribbean’s Q3 earnings release.”
Other equities research analysts also recently issued research reports about the company. Citigroup Inc. reaffirmed a “buy” rating and issued a $95.00 target price on shares of Royal Caribbean Cruises in a research report on Wednesday, August 24th. Credit Suisse Group AG reaffirmed a “buy” rating and issued a $100.00 target price on shares of Royal Caribbean Cruises in a research report on Wednesday, August 3rd. Stifel Nicolaus decreased their target price on Royal Caribbean Cruises from $94.00 to $93.00 and set a “buy” rating for the company in a research report on Wednesday, August 3rd. Nomura reaffirmed a “buy” rating and issued a $83.00 target price on shares of Royal Caribbean Cruises in a research report on Wednesday, September 14th. Finally, Deutsche Bank AG initiated coverage on Royal Caribbean Cruises in a research report on Thursday, September 29th. They issued a “hold” rating and a $81.00 target price for the company. One research analyst has rated the stock with a sell rating, five have given a hold rating and eighteen have assigned a buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus target price of $93.12.
Shares of Royal Caribbean Cruises (NYSE:RCL) opened at 70.05 on Monday. The stock’s 50 day moving average price is $70.71 and its 200 day moving average price is $73.37. Royal Caribbean Cruises has a 12 month low of $64.21 and a 12 month high of $103.40. The firm has a market cap of $15.08 billion, a price-to-earnings ratio of 19.99 and a beta of 1.65.
Royal Caribbean Cruises (NYSE:RCL) last announced its quarterly earnings results on Tuesday, August 2nd. The company reported $1.09 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.02 by $0.07. The company earned $2.11 billion during the quarter, compared to analyst estimates of $2.17 billion. Royal Caribbean Cruises had a return on equity of 14.76% and a net margin of 9.05%. The firm’s revenue was up 2.3% on a year-over-year basis. During the same period in the prior year, the firm posted $0.84 earnings per share. Equities research analysts predict that Royal Caribbean Cruises will post $6.05 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Thursday, October 13th. Stockholders of record on Thursday, September 29th were issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.74%. This is a boost from Royal Caribbean Cruises’s previous quarterly dividend of $0.38. The ex-dividend date of this dividend was Tuesday, September 27th. Royal Caribbean Cruises’s dividend payout ratio is presently 55.01%.
In related news, CEO Richard D. Fain purchased 29,190 shares of the stock in a transaction on Wednesday, August 3rd. The shares were purchased at an average cost of $68.52 per share, with a total value of $2,000,098.80. Following the acquisition, the chief executive officer now directly owns 1,068,881 shares in the company, valued at $73,239,726.12. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Vagn O. Sorensen purchased 1,100 shares of the stock in a transaction on Thursday, August 18th. The stock was bought at an average cost of $70.50 per share, for a total transaction of $77,550.00. Following the completion of the acquisition, the director now owns 18,871 shares in the company, valued at $1,330,405.50. The disclosure for this purchase can be found here. 16.80% of the stock is currently owned by insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. MU Investments Co. Ltd. bought a new position in Royal Caribbean Cruises during the second quarter valued at $109,000. Pinkerton Retirement Specialists LLC bought a new position in Royal Caribbean Cruises during the second quarter valued at $142,000. Mizuho Asset Management Co. Ltd. boosted its position in Royal Caribbean Cruises by 86.3% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 2,321 shares of the company’s stock valued at $156,000 after buying an additional 1,075 shares in the last quarter. Invictus RG bought a new position in Royal Caribbean Cruises during the first quarter valued at $164,000. Finally, Pacer Advisors Inc. boosted its position in Royal Caribbean Cruises by 7.5% in the second quarter. Pacer Advisors Inc. now owns 3,077 shares of the company’s stock valued at $207,000 after buying an additional 216 shares in the last quarter. 75.04% of the stock is currently owned by hedge funds and other institutional investors.
About Royal Caribbean Cruises
Royal Caribbean Cruises Ltd. is a cruise company. The Company owns various brands, such as Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisieres de France and joint venture interest in TUI Cruises. It operates approximately 23 ships with an aggregate capacity of approximately 68,600 berths under its Royal Caribbean International brand, offering cruise itineraries that range from 2 to 24 nights.
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