Zacks Investment Research cut shares of Royal Caribbean Cruises Ltd. (NYSE:RCL) from a buy rating to a hold rating in a report published on Monday.
According to Zacks, “Royal Caribbean’s shares have outpaced the Zacks classified Leisure & Recreation Services industry in the last six months. The company expects strong revenue growth in 2017 given solid booking trends. Demand is likely to remain strong for the company’s North American and European products and its Asia-Pacific itineraries are also likely to continue performing stoutly. Its ship innovation, technology investments and various profit-generating initiatives should lead to higher yields. The company has been successful in dealing with the volatility in fuel prices given its environmental efforts. Its Double-Double program aimed at improving revenue yields, control costs and moderate capacity growth also bodes well. Yet, higher costs in the near-term and adverse forex translations might hamper its profitability. Despite growth opportunities, lingering global uncertainties in China and Europe are likely to affect its international profits.”
Several other research analysts have also weighed in on the company. Deutsche Bank AG dropped their price target on Royal Caribbean Cruises from $102.00 to $91.00 and set a hold rating on the stock in a research report on Tuesday, May 2nd. Wedbush boosted their target price on Royal Caribbean Cruises from $106.00 to $117.00 and gave the company an outperform rating in a research note on Tuesday, April 25th. Stifel Nicolaus boosted their target price on Royal Caribbean Cruises from $109.00 to $115.00 and gave the company a buy rating in a research note on Tuesday, April 4th. Goldman Sachs Group, Inc. (The) boosted their target price on Royal Caribbean Cruises from $90.00 to $94.00 and gave the company a sell rating in a research note on Monday, May 1st. Finally, Wells Fargo & Company restated an outperform rating and issued a $119.50 target price (up previously from $117.50) on shares of Royal Caribbean Cruises in a research note on Tuesday, May 2nd. Two analysts have rated the stock with a sell rating, two have issued a hold rating and sixteen have issued a buy rating to the stock. The company has a consensus rating of Buy and a consensus price target of $102.31.
Shares of Royal Caribbean Cruises (NYSE RCL) opened at 112.07 on Monday. The firm has a 50-day moving average price of $108.92 and a 200-day moving average price of $96.11. Royal Caribbean Cruises has a 52 week low of $64.95 and a 52 week high of $114.50. The firm has a market capitalization of $24.10 billion, a price-to-earnings ratio of 17.32 and a beta of 1.08.
Royal Caribbean Cruises (NYSE:RCL) last posted its quarterly earnings results on Friday, April 28th. The company reported $0.99 earnings per share for the quarter, beating the consensus estimate of $0.92 by $0.07. The firm had revenue of $2.01 billion for the quarter, compared to analyst estimates of $2.02 billion. Royal Caribbean Cruises had a return on equity of 15.91% and a net margin of 16.29%. Royal Caribbean Cruises’s quarterly revenue was up 4.7% on a year-over-year basis. During the same period in the previous year, the firm earned $0.57 earnings per share. On average, equities analysts expect that Royal Caribbean Cruises will post $7.21 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 5th. Stockholders of record on Friday, June 2nd will be paid a dividend of $0.48 per share. The ex-dividend date is Wednesday, May 31st. This represents a $1.92 annualized dividend and a dividend yield of 1.71%. Royal Caribbean Cruises’s dividend payout ratio (DPR) is presently 29.68%.
In other news, CEO Richard D. Fain sold 20,000 shares of the company’s stock in a transaction dated Thursday, April 13th. The stock was sold at an average price of $94.92, for a total transaction of $1,898,400.00. Following the completion of the sale, the chief executive officer now owns 1,027,741 shares in the company, valued at approximately $97,553,175.72. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Harri U. Kulovaara sold 7,527 shares of the company’s stock in a transaction dated Monday, May 1st. The stock was sold at an average price of $110.00, for a total value of $827,970.00. Following the sale, the executive vice president now owns 29,667 shares of the company’s stock, valued at approximately $3,263,370. The disclosure for this sale can be found here. In the last quarter, insiders have sold 47,527 shares of company stock valued at $4,881,770. 15.30% of the stock is currently owned by corporate insiders.
Several hedge funds have recently added to or reduced their stakes in the company. Scout Investments Inc. boosted its position in Royal Caribbean Cruises by 33.2% in the third quarter. Scout Investments Inc. now owns 275,831 shares of the company’s stock valued at $20,674,000 after buying an additional 68,699 shares in the last quarter. Wetherby Asset Management Inc. boosted its position in Royal Caribbean Cruises by 9.5% in the fourth quarter. Wetherby Asset Management Inc. now owns 3,655 shares of the company’s stock valued at $300,000 after buying an additional 317 shares in the last quarter. State Street Corp boosted its position in Royal Caribbean Cruises by 4.6% in the fourth quarter. State Street Corp now owns 6,834,147 shares of the company’s stock valued at $560,665,000 after buying an additional 297,766 shares in the last quarter. Raymond James Financial Services Advisors Inc. boosted its position in Royal Caribbean Cruises by 149.5% in the fourth quarter. Raymond James Financial Services Advisors Inc. now owns 13,789 shares of the company’s stock valued at $1,131,000 after buying an additional 8,263 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in Royal Caribbean Cruises by 4.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,621,388 shares of the company’s stock valued at $215,078,000 after buying an additional 107,977 shares in the last quarter. Institutional investors own 71.28% of the company’s stock.
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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