Royal Caribbean Cruises (NYSE:RCL) Shares Gap Up – Time to Buy?

Royal Caribbean Cruises Ltd. (NYSE:RCL) gapped up before the market opened on Thursday . The stock had previously closed at $207.36, but opened at $214.91. Royal Caribbean Cruises shares last traded at $210.13, with a volume of 592,299 shares traded.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on RCL shares. Mizuho restated an “outperform” rating and issued a $253.00 price target (down previously from $255.00) on shares of Royal Caribbean Cruises in a report on Thursday, January 23rd. Morgan Stanley upped their price target on Royal Caribbean Cruises from $210.00 to $225.00 and gave the stock an “equal weight” rating in a report on Monday, February 3rd. Citigroup upped their price target on Royal Caribbean Cruises from $283.00 to $304.00 and gave the stock a “buy” rating in a report on Wednesday, January 29th. JPMorgan Chase & Co. upped their price target on Royal Caribbean Cruises from $253.00 to $295.00 and gave the stock an “overweight” rating in a report on Friday, January 17th. Finally, Barclays upped their price target on Royal Caribbean Cruises from $287.00 to $308.00 and gave the stock an “overweight” rating in a report on Wednesday, January 29th. Three investment analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $283.53.

Royal Caribbean Cruises Trading Up 2.1 %

The company has a market cap of $57.14 billion, a PE ratio of 19.86, a price-to-earnings-growth ratio of 0.90 and a beta of 2.53. The business has a 50 day simple moving average of $241.31 and a two-hundred day simple moving average of $219.53. The company has a current ratio of 0.17, a quick ratio of 0.15 and a debt-to-equity ratio of 2.39.

Royal Caribbean Cruises (NYSE:RCL) last issued its quarterly earnings results on Tuesday, January 28th. The company reported $1.63 earnings per share for the quarter, topping analysts’ consensus estimates of $1.50 by $0.13. Royal Caribbean Cruises had a return on equity of 48.97% and a net margin of 17.46%. During the same quarter last year, the firm posted $1.25 EPS. On average, analysts forecast that Royal Caribbean Cruises Ltd. will post 14.9 EPS for the current fiscal year.

Royal Caribbean Cruises Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, April 4th. Investors of record on Friday, March 7th will be given a $0.75 dividend. This is a positive change from Royal Caribbean Cruises’s previous quarterly dividend of $0.55. This represents a $3.00 annualized dividend and a dividend yield of 1.41%. The ex-dividend date is Friday, March 7th. Royal Caribbean Cruises’s dividend payout ratio (DPR) is 28.06%.

Royal Caribbean Cruises declared that its Board of Directors has authorized a stock repurchase program on Wednesday, February 12th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to purchase up to 1.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, insider Laura H. Bethge sold 14,992 shares of the stock in a transaction on Tuesday, February 18th. The stock was sold at an average price of $261.86, for a total value of $3,925,805.12. Following the transaction, the insider now directly owns 21,155 shares of the company’s stock, valued at approximately $5,539,648.30. This trade represents a 41.48 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Richard D. Fain sold 19,500 shares of the stock in a transaction on Thursday, February 13th. The shares were sold at an average price of $256.68, for a total value of $5,005,260.00. Following the completion of the sale, the director now owns 185,021 shares of the company’s stock, valued at approximately $47,491,190.28. This represents a 9.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 109,492 shares of company stock valued at $28,571,705. 7.95% of the stock is currently owned by company insiders.

Institutional Trading of Royal Caribbean Cruises

Several large investors have recently added to or reduced their stakes in the stock. Lansforsakringar Fondforvaltning AB publ acquired a new stake in Royal Caribbean Cruises in the 4th quarter valued at $18,357,000. Park Square Financial Group LLC acquired a new stake in Royal Caribbean Cruises in the 4th quarter valued at $90,000. Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in Royal Caribbean Cruises in the 4th quarter valued at $28,954,000. Capital A Wealth Management LLC acquired a new stake in Royal Caribbean Cruises in the 4th quarter valued at $40,000. Finally, Leigh Baldwin & CO. LLC acquired a new stake in shares of Royal Caribbean Cruises during the fourth quarter valued at about $279,000. 87.53% of the stock is currently owned by institutional investors and hedge funds.

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.