According to Zacks, “Royal Caribbean is expected to deliver solid results going forward, backed by strong booking trends, technological innovation, capacity growth and various profit-generating initiatives. The company’s North American products and Asia itineraries are likely to continue performing well as has been the case over the past few quarters. Also, the company’s decision to invest in the fast-growing Chinese cruise markets is commendable. However, higher marketing and promotional spend, along with increased cruise costs, might hurt margins in the near term. Further, despite the growth opportunities, lingering global uncertainties in China and Europe and negative forex translations is likely to impact the company’s profits. Although the company has a positive record of earnings surprises in the recent quarters, estimates have been going down ahead of the company’s Q3 earnings release.”
A number of other research firms also recently commented on RCL. Citigroup Inc. reaffirmed a buy rating and set a $95.00 price objective on shares of Royal Caribbean Cruises in a report on Wednesday, August 24th. Stifel Nicolaus reduced their price objective on shares of Royal Caribbean Cruises from $99.00 to $94.00 and set a buy rating for the company in a report on Thursday, July 28th. Credit Suisse Group AG reaffirmed a buy rating and set a $100.00 price objective on shares of Royal Caribbean Cruises in a report on Wednesday, August 3rd. Sanford C. Bernstein initiated coverage on shares of Royal Caribbean Cruises in a report on Thursday, September 8th. They set an outperform rating and a $90.00 price objective for the company. Finally, Nomura reaffirmed a buy rating and set a $83.00 price objective on shares of Royal Caribbean Cruises in a report on Wednesday, September 14th. Six investment analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company. The company has a consensus rating of Buy and a consensus price target of $92.86.
Royal Caribbean Cruises (NYSE:RCL) opened at 74.57 on Monday. The firm has a 50-day moving average of $70.10 and a 200 day moving average of $73.74. The company has a market cap of $16.05 billion, a PE ratio of 21.28 and a beta of 1.65. Royal Caribbean Cruises has a 52-week low of $64.21 and a 52-week high of $103.40.
Royal Caribbean Cruises (NYSE:RCL) last posted its earnings results on Tuesday, August 2nd. The company reported $1.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.02 by $0.07. Royal Caribbean Cruises had a net margin of 9.05% and a return on equity of 14.76%. The business had revenue of $2.11 billion for the quarter, compared to analyst estimates of $2.17 billion. During the same period last year, the business posted $0.84 EPS. Royal Caribbean Cruises’s revenue was up 2.3% compared to the same quarter last year. Equities research analysts expect that Royal Caribbean Cruises will post $6.07 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 13th. Investors of record on Thursday, September 29th will be issued a dividend of $0.48 per share. The ex-dividend date of this dividend is Tuesday, September 27th. This represents a $1.92 dividend on an annualized basis and a yield of 2.57%. This is a boost from Royal Caribbean Cruises’s previous quarterly dividend of $0.38. Royal Caribbean Cruises’s payout ratio is currently 55.01%.
In other news, Director Vagn O. Sorensen acquired 1,100 shares of the firm’s stock in a transaction that occurred on Thursday, August 18th. The stock was purchased at an average price 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 transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Lisa Lutoff-Perlo sold 6,790 shares of the business’s stock in a transaction that occurred on Friday, August 5th. The shares were sold at an average price of $74.46, for a total transaction of $505,583.40. Following the transaction, the chief executive officer now owns 34,450 shares of the company’s stock, valued at approximately $2,565,147. The disclosure for this sale can be found here. Corporate insiders own 16.80% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. MU Investments Co. Ltd. purchased a new position in shares of Royal Caribbean Cruises during the second quarter worth about $109,000. IFP Advisors Inc boosted its position in shares of Royal Caribbean Cruises by 33.3% in the first quarter. IFP Advisors Inc now owns 1,416 shares of the company’s stock worth $116,000 after buying an additional 354 shares in the last quarter. Pinkerton Retirement Specialists LLC purchased a new position in shares of Royal Caribbean Cruises during the second quarter worth about $142,000. Mizuho Asset Management Co. Ltd. boosted its position in shares of 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 worth $156,000 after buying an additional 1,075 shares in the last quarter. Finally, Invictus RG purchased a new position in shares of Royal Caribbean Cruises during the first quarter worth about $164,000. Hedge funds and other institutional investors own 75.04% of the company’s stock.
Royal Caribbean Cruises Company Profile
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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