Zacks Investment Research cut shares of Royal Caribbean Cruises Ltd. (NYSE:RCL) from a buy rating to a hold rating in a report released on Wednesday, August 30th.
According to Zacks, “Royal Caribbean shares have outpaced the industry in the past year. Given solid performance in the last reported quarter along with favorable booking trends, the company raised its full-year 2017 earnings view. Going forward, the company’s sailings in the U.S., Europe, Alaska, Baltic and Asia, are likely to continue performing strongly. The company thus remains positioned to witness another record year and achieve its targets under the Double-Double program. While, its capacity growth should aid in meeting increased demand, ship innovation and technology investments should lead to higher yields. However, higher costs might hurt the company’s profitability in the near term. Further, lingering global uncertainties in key operating regions, along with negative currency translation remain concerns.”
Other equities research analysts also recently issued reports about the stock. ValuEngine upgraded shares of Royal Caribbean Cruises from a hold rating to a buy rating in a research note on Friday, June 2nd. BidaskClub upgraded shares of Royal Caribbean Cruises from a buy rating to a strong-buy rating in a research note on Thursday, August 17th. Deutsche Bank AG increased their price objective on shares of Royal Caribbean Cruises from $102.00 to $114.00 and gave the stock a hold rating in a research note on Wednesday, August 2nd. Goldman Sachs Group, Inc. (The) downgraded shares of Royal Caribbean Cruises to a sell rating in a research note on Tuesday, August 15th. Finally, UBS AG reiterated a buy rating and set a $131.00 price objective (up from $112.00) on shares of Royal Caribbean Cruises in a research note on Tuesday, August 8th. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the stock. Royal Caribbean Cruises presently has an average rating of Buy and a consensus price target of $118.49.
Shares of Royal Caribbean Cruises (NYSE RCL) opened at 120.92 on Wednesday. The company’s 50-day moving average is $119.72 and its 200 day moving average is $108.73. Royal Caribbean Cruises has a 1-year low of $65.45 and a 1-year high of $125.00. The firm has a market cap of $26.01 billion, a price-to-earnings ratio of 16.96 and a beta of 1.03.
Royal Caribbean Cruises (NYSE:RCL) last released its quarterly earnings results on Tuesday, August 1st. The company reported $1.71 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.67 by $0.04. Royal Caribbean Cruises had a net margin of 17.73% and a return on equity of 16.71%. The business had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.19 billion. During the same period in the prior year, the company posted $1.09 earnings per share. Royal Caribbean Cruises’s revenue was up 4.3% compared to the same quarter last year. On average, equities research analysts expect that Royal Caribbean Cruises will post $7.44 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 11th. Shareholders of record on Friday, September 22nd will be given a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 1.98%. The ex-dividend date of this dividend is Thursday, September 21st. This is an increase from Royal Caribbean Cruises’s previous quarterly dividend of $0.48. Royal Caribbean Cruises’s dividend payout ratio is currently 26.97%.
In other Royal Caribbean Cruises news, EVP Harri U. Kulovaara sold 7,580 shares of the stock in a transaction that occurred on Monday, August 14th. The shares were sold at an average price of $119.61, for a total transaction of $906,643.80. Following the completion of the sale, the executive vice president now owns 23,493 shares of the company’s stock, valued at approximately $2,809,997.73. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Richard D. Fain sold 20,000 shares of the stock in a transaction that occurred on Wednesday, September 13th. The shares were sold at an average price of $121.29, for a total transaction of $2,425,800.00. Following the sale, the chief executive officer now directly owns 927,741 shares of the company’s stock, valued at approximately $112,525,705.89. The disclosure for this sale can be found here. Insiders have sold a total of 480,079 shares of company stock valued at $56,139,855 in the last three months. Insiders own 15.30% of the company’s stock.
Several hedge funds have recently made changes to their positions in RCL. Advisors Preferred LLC acquired a new stake in shares of Royal Caribbean Cruises during the 1st quarter worth approximately $103,000. TLP Group LLC acquired a new stake in shares of Royal Caribbean Cruises during the 2nd quarter worth approximately $105,000. NEXT Financial Group Inc grew its position in shares of Royal Caribbean Cruises by 25.0% during the 1st quarter. NEXT Financial Group Inc now owns 1,000 shares of the company’s stock worth $107,000 after buying an additional 200 shares during the period. Acrospire Investment Management LLC grew its position in shares of Royal Caribbean Cruises by 25.0% during the 2nd quarter. Acrospire Investment Management LLC now owns 1,000 shares of the company’s stock worth $109,000 after buying an additional 200 shares during the period. Finally, Oppenheimer Asset Management Inc. acquired a new stake in shares of Royal Caribbean Cruises during the 1st quarter worth approximately $119,000. 71.60% of the stock is owned by institutional investors.
Royal Caribbean Cruises Company Profile
Royal Caribbean Cruises Ltd. is a cruise company. The Company owns and operates three global cruise brands: Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises (Global Brands). The Company also own joint venture interest in the German brand TUI Cruises, interest in the Spanish brand Pullmantur and interest in the Chinese brand SkySea Cruises (collectively, Partner Brands).
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