Royal Caribbean Cruises (NYSE:RCL) Stock Price Down 8.3% – Time to Sell?

Royal Caribbean Cruises Ltd. (NYSE:RCL)’s share price fell 8.3% on Tuesday . The stock traded as low as $221.23 and last traded at $221.00. 1,821,178 shares changed hands during trading, a decline of 27% from the average session volume of 2,483,354 shares. The stock had previously closed at $241.12.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on RCL. JPMorgan Chase & Co. upped their target price on shares of Royal Caribbean Cruises from $253.00 to $295.00 and gave the company an “overweight” rating in a report on Friday, January 17th. Sanford C. Bernstein began coverage on Royal Caribbean Cruises in a research note on Tuesday, November 26th. They issued an “outperform” rating and a $290.00 price objective on the stock. StockNews.com raised Royal Caribbean Cruises from a “sell” rating to a “hold” rating in a research report on Tuesday, November 26th. Truist Financial boosted their target price on Royal Caribbean Cruises from $204.00 to $272.00 and gave the stock a “buy” rating in a report on Monday, December 2nd. Finally, Loop Capital began coverage on Royal Caribbean Cruises in a report on Tuesday, February 4th. They set a “hold” rating and a $250.00 price target for the company. Four research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $284.12.

Royal Caribbean Cruises Stock Down 6.0 %

The stock’s fifty day simple moving average is $244.80 and its 200-day simple moving average is $216.92. The stock has a market cap of $61.00 billion, a P/E ratio of 21.20, a P/E/G ratio of 0.90 and a beta of 2.59. The company has a debt-to-equity ratio of 2.39, a quick ratio of 0.15 and a current ratio of 0.17.

Royal Caribbean Cruises (NYSE:RCL) last released its earnings results on Tuesday, January 28th. 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 48.97% and a net margin of 17.46%. During the same quarter in the prior year, the business posted $1.25 earnings per share. As a group, research analysts forecast that Royal Caribbean Cruises Ltd. will post 14.9 earnings per share 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. Stockholders of record on Friday, March 7th will be given a $0.75 dividend. The ex-dividend date is Friday, March 7th. This is a boost from Royal Caribbean Cruises’s previous quarterly dividend of $0.55. This represents a $3.00 annualized dividend and a dividend yield of 1.32%. Royal Caribbean Cruises’s payout ratio is presently 28.06%.

Royal Caribbean Cruises announced that its board has initiated a stock buyback program on Wednesday, February 12th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the company to reacquire up to 1.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

Insider Activity at Royal Caribbean Cruises

In related news, CFO Naftali Holtz sold 17,000 shares of the stock in a transaction that occurred on Tuesday, February 18th. The shares were sold at an average price of $261.62, for a total value of $4,447,540.00. Following the completion of the transaction, the chief financial officer now owns 42,127 shares of the company’s stock, valued at $11,021,265.74. This represents a 28.75 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Jason T. Liberty sold 58,000 shares of the stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $261.95, for a total value of $15,193,100.00. Following the completion of the transaction, the chief executive officer now owns 143,214 shares of the company’s stock, valued at $37,514,907.30. The trade was a 28.83 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 109,492 shares of company stock valued at $28,571,705 over the last three months. 7.95% of the stock is owned by insiders.

Institutional Investors Weigh In On Royal Caribbean Cruises

Hedge funds and other institutional investors have recently bought and sold shares of the company. Venturi Wealth Management LLC boosted its stake in shares of Royal Caribbean Cruises by 511.0% during the fourth quarter. Venturi Wealth Management LLC now owns 2,157 shares of the company’s stock valued at $498,000 after purchasing an additional 1,804 shares in the last quarter. Park Avenue Securities LLC raised its holdings in Royal Caribbean Cruises by 20.1% in the 4th quarter. Park Avenue Securities LLC now owns 6,630 shares of the company’s stock valued at $1,530,000 after buying an additional 1,111 shares during the last quarter. Sanctuary Advisors LLC boosted its position in Royal Caribbean Cruises by 76.1% during the 3rd quarter. Sanctuary Advisors LLC now owns 28,991 shares of the company’s stock worth $5,142,000 after buying an additional 12,530 shares during the period. Lorne Steinberg Wealth Management Inc. bought a new stake in Royal Caribbean Cruises during the 4th quarter worth approximately $231,000. Finally, Principal Financial Group Inc. increased its position in Royal Caribbean Cruises by 2.7% in the 4th quarter. Principal Financial Group Inc. now owns 291,027 shares of the company’s stock valued at $67,137,000 after acquiring an additional 7,740 shares during the period. Institutional investors own 87.53% of the company’s stock.

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.