Royal Caribbean Cruises (NYSE:RCL) Shares Gap Up After 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.

The company reported $1.63 EPS 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%.

Royal Caribbean Cruises Cuts Dividend

The firm also recently declared 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 dividend on an annualized basis and a dividend yield of 0.85%. The ex-dividend date was Friday, December 27th. Royal Caribbean Cruises’s payout ratio is 22.61%.

Analyst Ratings Changes

Several analysts have recently commented on RCL shares. Morgan Stanley increased their target price on shares of Royal Caribbean Cruises from $190.00 to $210.00 and gave the company an “equal weight” rating in a report on Wednesday, January 8th. Mizuho reaffirmed an “outperform” rating and set a $253.00 price target (down from $255.00) on shares of Royal Caribbean Cruises in a research report on Thursday, January 23rd. Bank of America boosted their price objective on Royal Caribbean Cruises from $210.00 to $240.00 and gave the stock a “neutral” rating in a research report on Wednesday, November 13th. Wells Fargo & Company boosted their target price on shares of Royal Caribbean Cruises from $232.00 to $272.00 and gave the company an “overweight” rating in a research note on Monday. Finally, Truist Financial increased their price target on Royal Caribbean Cruises from $204.00 to $272.00 and gave the stock a “buy” rating in a research note on Monday, December 2nd. Three research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company’s stock. According to MarketBeat, Royal Caribbean Cruises has a consensus rating of “Moderate Buy” and a consensus target price of $252.31.

Insider Activity at Royal Caribbean Cruises

In related news, Director Richard D. Fain sold 25,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 30th. The stock was sold at an average price of $210.02, for a total value of $5,250,500.00. Following the sale, the director now owns 204,521 shares in the company, valued at $42,953,500.42. This represents a 10.89 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CAO Henry L. Pujol sold 6,723 shares of the stock in a transaction dated Wednesday, October 30th. The shares were sold at an average price of $208.51, for a total transaction of $1,401,812.73. Following the sale, the chief accounting officer now directly owns 9,964 shares in the company, valued at $2,077,593.64. This trade represents a 40.29 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 404,332 shares of company stock worth $94,299,521 in the last ninety days. 7.95% of the stock is owned by company insiders.

Hedge Funds Weigh In On Royal Caribbean Cruises

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RCL. Fifth Third Wealth Advisors LLC increased its position in Royal Caribbean Cruises by 2.2% during the fourth quarter. Fifth Third Wealth Advisors LLC now owns 2,360 shares of the company’s stock valued at $544,000 after acquiring an additional 50 shares during the last quarter. Bartlett & CO. Wealth Management LLC increased its stake in shares of Royal Caribbean Cruises by 12.3% in the fourth quarter. Bartlett & CO. Wealth Management LLC now owns 457 shares of the company’s stock worth $106,000 after purchasing an additional 50 shares in the last quarter. FSM Wealth Advisors LLC raised its position in shares of Royal Caribbean Cruises by 3.2% during the 3rd quarter. FSM Wealth Advisors LLC now owns 1,636 shares of the company’s stock valued at $290,000 after purchasing an additional 51 shares during the period. Brooklyn Investment Group lifted its stake in shares of Royal Caribbean Cruises by 2.5% during the 4th quarter. Brooklyn Investment Group now owns 2,117 shares of the company’s stock valued at $488,000 after buying an additional 52 shares in the last quarter. Finally, Grove Bank & Trust boosted its holdings in Royal Caribbean Cruises by 10.5% in the 4th quarter. Grove Bank & Trust now owns 613 shares of the company’s stock worth $141,000 after buying an additional 58 shares during the period. 87.53% of the stock is owned by institutional investors.

Royal Caribbean Cruises Price Performance

The company has a current ratio of 0.19, a quick ratio of 0.16 and a debt-to-equity ratio of 2.63. The stock has a 50 day simple moving average of $237.76 and a 200-day simple moving average of $199.00. The firm has a market cap of $69.42 billion, a PE ratio of 26.49, a price-to-earnings-growth ratio of 0.50 and a beta of 2.59.

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.