Royal Caribbean Cruises (NYSE:RCL) Shares Gap Up Following Better-Than-Expected Earnings

Royal Caribbean Cruises Ltd. (NYSE:RCL) shares gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $236.82, but opened at $246.75. Royal Caribbean Cruises shares last traded at $259.06, with a volume of 1,440,398 shares traded.

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

Royal Caribbean Cruises Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, January 13th. Shareholders of record on Friday, December 27th were issued a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 0.83%. The ex-dividend date of this dividend was Friday, December 27th. Royal Caribbean Cruises’s dividend payout ratio (DPR) is presently 22.61%.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Mizuho restated an “outperform” rating and issued a $253.00 target price (down from $255.00) on shares of Royal Caribbean Cruises in a research note on Thursday, January 23rd. StockNews.com upgraded Royal Caribbean Cruises from a “sell” rating to a “hold” rating in a research note on Tuesday, November 26th. Stifel Nicolaus upped their price objective on Royal Caribbean Cruises from $250.00 to $310.00 and gave the stock a “buy” rating in a research report on Friday, December 6th. The Goldman Sachs Group decreased their price objective on shares of Royal Caribbean Cruises from $275.00 to $270.00 and set a “buy” rating on the stock in a report on Friday, January 24th. Finally, Wells Fargo & Company increased their price objective on shares of Royal Caribbean Cruises from $232.00 to $272.00 and gave the company an “overweight” rating in a report on Monday. Three analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $252.31.

Insider Activity at Royal Caribbean Cruises

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

Institutional Investors Weigh In On Royal Caribbean Cruises

A number of hedge funds have recently added to or reduced their stakes in the business. Plato Investment Management Ltd acquired a new position in Royal Caribbean Cruises during the 3rd quarter valued at about $26,000. Safe Harbor Fiduciary LLC bought a new position in shares of Royal Caribbean Cruises during the 3rd quarter worth $27,000. DiNuzzo Private Wealth Inc. raised its position in shares of Royal Caribbean Cruises by 257.4% in 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. LRI Investments LLC purchased a new stake in Royal Caribbean Cruises during the 3rd quarter worth about $31,000. Finally, Bay Harbor Wealth Management LLC purchased a new position in Royal Caribbean Cruises during the fourth quarter valued at approximately $36,000. 87.53% of the stock is currently owned by institutional investors.

Royal Caribbean Cruises Stock Performance

The company has a 50-day moving average of $237.87 and a 200 day moving average of $199.52. The firm has a market capitalization of $71.17 billion, a PE ratio of 27.21, a PEG ratio of 0.50 and a beta of 2.59. The company has a quick ratio of 0.16, a current ratio of 0.19 and a debt-to-equity ratio of 2.63.

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.