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

Royal Caribbean Cruises Ltd. (NYSE:RCL)’s share price 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 trading hands.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Loop Capital upgraded Royal Caribbean Cruises from a “hold” rating to a “buy” rating and set a $250.00 target price on the stock in a research note on Wednesday, March 5th. Macquarie upped their target price on Royal Caribbean Cruises from $250.00 to $300.00 and gave the stock an “outperform” rating in a research note on Thursday, January 30th. Wells Fargo & Company upped their target price on Royal Caribbean Cruises from $232.00 to $272.00 and gave the stock an “overweight” rating in a research note on Monday, January 27th. Argus upped their target price on Royal Caribbean Cruises from $280.00 to $305.00 and gave the stock a “buy” rating in a research note on Wednesday, January 29th. Finally, Morgan Stanley upped their target price on Royal Caribbean Cruises from $210.00 to $225.00 and gave the stock an “equal weight” rating in a research note on Monday, February 3rd. Three equities research analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $283.53.

Royal Caribbean Cruises Stock Up 2.1 %

The company has a market capitalization 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 company has a quick ratio of 0.15, a current ratio of 0.17 and a debt-to-equity ratio of 2.39. The firm has a 50-day moving average of $241.31 and a two-hundred day moving average of $219.53.

Royal Caribbean Cruises (NYSE:RCL) last released its quarterly earnings results on Tuesday, January 28th. The company reported $1.63 EPS for the quarter, topping the consensus estimate 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 company earned $1.25 earnings per share. Equities research analysts predict that Royal Caribbean Cruises Ltd. will post 14.9 earnings per share for the current fiscal year.

Royal Caribbean Cruises Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 4th. Shareholders of record on Friday, March 7th will be issued a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a yield of 1.41%. This is an increase from Royal Caribbean Cruises’s previous quarterly dividend of $0.55. The ex-dividend date is Friday, March 7th. Royal Caribbean Cruises’s payout ratio is 28.06%.

Royal Caribbean Cruises announced that its Board of Directors has initiated a share buyback program on Wednesday, February 12th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the company to purchase up to 1.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other news, CEO Jason T. Liberty sold 58,000 shares of the business’s stock in a transaction dated Tuesday, February 18th. The stock was sold at an average price of $261.95, for a total value of $15,193,100.00. Following the completion of the sale, the chief executive officer now directly owns 143,214 shares of the company’s stock, valued at approximately $37,514,907.30. The trade was a 28.83 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Naftali Holtz sold 17,000 shares of the business’s stock in a transaction dated 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 sale, the chief financial officer now directly owns 42,127 shares of the company’s stock, valued at $11,021,265.74. The trade was a 28.75 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 109,492 shares of company stock valued at $28,571,705 in the last ninety days. Insiders own 7.95% of the company’s stock.

Institutional Trading of Royal Caribbean Cruises

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Venturi Wealth Management LLC raised its stake in Royal Caribbean Cruises by 511.0% during the 4th quarter. Venturi Wealth Management LLC now owns 2,157 shares of the company’s stock valued at $498,000 after acquiring an additional 1,804 shares during the last quarter. Park Avenue Securities LLC increased its position in Royal Caribbean Cruises by 20.1% during the 4th quarter. Park Avenue Securities LLC now owns 6,630 shares of the company’s stock worth $1,530,000 after purchasing an additional 1,111 shares during the period. Sanctuary Advisors LLC increased 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 purchasing an additional 12,530 shares during the period. Lorne Steinberg Wealth Management Inc. acquired a new position 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% during the 4th quarter. Principal Financial Group Inc. now owns 291,027 shares of the company’s stock worth $67,137,000 after purchasing an additional 7,740 shares during the period. 87.53% of the stock is owned by hedge funds and other institutional investors.

About Royal Caribbean Cruises

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.