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. Royal Caribbean recently hiked its quarterly dividend by 28%, thus reflecting its financial stability and substantial profitability. 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 is likely to impact the company’s international profits. The negative impact of the foreign currency translation on the company’s profits is another concern.”
RCL has been the subject of several other reports. Morgan Stanley dropped their target price on Royal Caribbean Cruises from $99.00 to $80.00 and set an equal weight rating for the company in a report on Thursday, May 26th. Citigroup Inc. restated a buy rating and set a $95.00 target price on shares of Royal Caribbean Cruises in a report on Wednesday, August 24th. Nomura restated a buy rating and set a $83.00 target price on shares of Royal Caribbean Cruises in a report on Wednesday, September 14th. Credit Suisse Group AG restated a buy rating and set a $100.00 target price on shares of Royal Caribbean Cruises in a report on Wednesday, August 3rd. Finally, Tigress Financial upgraded Royal Caribbean Cruises to a buy rating in a report on Tuesday, May 31st. Five analysts have rated the stock with a hold rating and seventeen have given a buy rating to the company’s stock. The company currently has a consensus rating of Buy and an average price target of $93.52.
Royal Caribbean Cruises (NYSE:RCL) traded up 0.04% during midday trading on Thursday, hitting $71.02. The stock had a trading volume of 362,402 shares. The company has a market cap of $15.29 billion, a P/E ratio of 20.27 and a beta of 1.73. Royal Caribbean Cruises has a 12 month low of $64.21 and a 12 month high of $103.40. The firm’s 50-day moving average price is $69.72 and its 200 day moving average price is $73.66.
Royal Caribbean Cruises (NYSE:RCL) last announced its quarterly earnings data on Tuesday, August 2nd. The company reported $1.09 EPS for the quarter, beating the consensus estimate of $1.02 by $0.07. The firm had revenue of $2.11 billion for 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 company’s revenue was up 2.3% on a year-over-year basis. During the same period in the prior year, the company earned $0.84 EPS. On average, analysts expect that Royal Caribbean Cruises will post $6.08 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 13th. Shareholders of record on Thursday, September 29th will be issued a $0.48 dividend. This is a positive change from Royal Caribbean Cruises’s previous quarterly dividend of $0.38. The ex-dividend date of this dividend is Tuesday, September 27th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.70%. Royal Caribbean Cruises’s dividend payout ratio (DPR) is presently 42.98%.
In other news, CEO Michael W. Bayley sold 12,183 shares of the firm’s stock in a transaction on Thursday, August 11th. The stock was sold at an average price of $71.07, for a total value of $865,845.81. Following the transaction, the chief executive officer now directly owns 82,943 shares in the company, valued at approximately $5,894,759.01. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Vagn O. Sorensen purchased 1,100 shares of the company’s stock in a transaction dated 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 purchase, 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 owned by company insiders.
Institutional investors have recently added to or reduced their stakes in the company. Calvert Investment Management Inc. increased its position in Royal Caribbean Cruises by 0.4% in the second quarter. Calvert Investment Management Inc. now owns 10,250 shares of the company’s stock worth $688,000 after buying an additional 44 shares during the period. Gagnon Securities LLC increased its position in Royal Caribbean Cruises by 0.4% in the first quarter. Gagnon Securities LLC now owns 14,913 shares of the company’s stock worth $1,225,000 after buying an additional 57 shares during the period. Moody Lynn & Lieberson LLC increased its position in Royal Caribbean Cruises by 1.0% in the second quarter. Moody Lynn & Lieberson LLC now owns 5,750 shares of the company’s stock worth $386,000 after buying an additional 57 shares during the period. Ngam Advisors L.P. increased its position in Royal Caribbean Cruises by 0.4% in the second quarter. Ngam Advisors L.P. now owns 21,222 shares of the company’s stock worth $1,425,000 after buying an additional 83 shares during the period. Finally, Commonwealth Equity Services Inc increased its position in Royal Caribbean Cruises by 1.2% in the first quarter. Commonwealth Equity Services Inc now owns 7,726 shares of the company’s stock worth $635,000 after buying an additional 92 shares during the period. Hedge funds and other institutional investors own 75.03% 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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