Royal Caribbean Cruises (NYSE:RCL) Reaches New 52-Week High on Strong Earnings

Royal Caribbean Cruises Ltd. (NYSE:RCL)’s share price reached a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $269.96 and last traded at $264.71, with a volume of 8086822 shares trading hands. The stock had previously closed at $236.82.

The company reported $1.63 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.50 by $0.13. Royal Caribbean Cruises had a net margin of 16.21% and a return on equity of 52.92%. During the same period in the previous year, the firm earned $1.25 earnings per share.

Royal Caribbean Cruises Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, January 13th. Shareholders of record on Friday, December 27th were given a dividend of $0.55 per share. The ex-dividend date of this dividend was Friday, December 27th. This represents a $2.20 dividend on an annualized basis and a yield of 0.80%. Royal Caribbean Cruises’s payout ratio is 20.58%.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Stifel Nicolaus raised their price target on Royal Caribbean Cruises from $250.00 to $310.00 and gave the company a “buy” rating in a research report on Friday, December 6th. Argus lifted their target price on shares of Royal Caribbean Cruises from $280.00 to $305.00 and gave the stock a “buy” rating in a research report on Wednesday. Barclays upped their price target on shares of Royal Caribbean Cruises from $287.00 to $308.00 and gave the company an “overweight” rating in a report on Wednesday. Macquarie raised their price objective on shares of Royal Caribbean Cruises from $250.00 to $300.00 and gave the stock an “outperform” rating in a research note on Thursday. Finally, Morgan Stanley upped their target price on Royal Caribbean Cruises from $190.00 to $210.00 and gave the company an “equal weight” rating in a research note on Wednesday, January 8th. Three analysts have rated the stock with a hold rating and fourteen have given a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $274.19.

Insider Buying and Selling

In other Royal Caribbean Cruises news, EVP Harri U. Kulovaara sold 3,256 shares of Royal Caribbean Cruises stock in a transaction that occurred on Wednesday, November 20th. The shares were sold at an average price of $234.62, for a total transaction of $763,922.72. Following the transaction, the executive vice president now directly owns 22,348 shares of the company’s stock, valued at $5,243,287.76. The trade was a 12.72 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Arne Alexander Wilhelmsen sold 230,000 shares of the stock in a transaction on Tuesday, November 19th. The stock was sold at an average price of $233.62, for a total transaction of $53,732,600.00. Following the completion of the sale, the director now directly owns 18,556,860 shares of the company’s stock, valued at $4,335,253,633.20. The trade was a 1.22 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 372,609 shares of company stock valued at $87,647,208. Insiders own 7.95% of the company’s stock.

Institutional Trading of Royal Caribbean Cruises

A number of institutional investors have recently added to or reduced their stakes in RCL. Plato Investment Management Ltd purchased a new stake in shares of Royal Caribbean Cruises in the third quarter worth about $26,000. Safe Harbor Fiduciary LLC purchased a new position in Royal Caribbean Cruises in the 3rd quarter worth approximately $27,000. Bay Harbor Wealth Management LLC acquired a new stake in Royal Caribbean Cruises in the fourth quarter valued at approximately $36,000. DiNuzzo Private Wealth Inc. raised its stake in shares of Royal Caribbean Cruises by 257.4% during the third quarter. DiNuzzo Private Wealth Inc. now owns 168 shares of the company’s stock valued at $30,000 after purchasing an additional 121 shares during the period. Finally, ORG Wealth Partners LLC acquired a new position in shares of Royal Caribbean Cruises during the fourth quarter worth $40,000. 87.53% of the stock is owned by hedge funds and other institutional investors.

Royal Caribbean Cruises Trading Up 2.2 %

The firm has a market capitalization of $73.93 billion, a price-to-earnings ratio of 28.26, a PEG ratio of 0.50 and a beta of 2.59. The business’s 50-day moving average price is $239.12 and its 200 day moving average price is $200.69. The company has a debt-to-equity ratio of 2.63, a current ratio of 0.19 and a quick ratio of 0.16.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd.