Royal Caribbean Cruises (NYSE:RCL) Reaches New 1-Year High After Strong Earnings

Royal Caribbean Cruises Ltd. (NYSE:RCL)’s share price hit a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $269.96 and last traded at $264.71, with a volume of 8086822 shares changing hands. The stock had previously closed at $236.82.

The company reported $1.63 EPS for the quarter, topping 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 earnings per share.

Royal Caribbean Cruises Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, January 13th. Investors of record on Friday, December 27th were given a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 0.80%. The ex-dividend date of this dividend was Friday, December 27th. Royal Caribbean Cruises’s dividend payout ratio is currently 20.58%.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. Tigress Financial increased their target price on shares of Royal Caribbean Cruises from $210.00 to $270.00 and gave the stock a “buy” rating in a report on Thursday, November 7th. Stifel Nicolaus raised their target price on shares of Royal Caribbean Cruises from $250.00 to $310.00 and gave the stock a “buy” rating in a report on Friday, December 6th. Barclays lifted their target price on Royal Caribbean Cruises from $287.00 to $308.00 and gave the company an “overweight” rating in a research note on Wednesday. The Goldman Sachs Group dropped their price target on Royal Caribbean Cruises from $275.00 to $270.00 and set a “buy” rating on the stock in a research report on Friday, January 24th. Finally, JPMorgan Chase & Co. boosted their price objective on Royal Caribbean Cruises from $253.00 to $295.00 and gave the company an “overweight” rating in a research report on Friday, January 17th. Three analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $274.19.

Insiders Place Their Bets

In other Royal Caribbean Cruises news, 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 value of $763,922.72. Following the sale, the executive vice president now directly owns 22,348 shares in the company, valued at approximately $5,243,287.76. The trade was a 12.72 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Arne Alexander Wilhelmsen sold 139,353 shares of the firm’s stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $237.89, for a total transaction of $33,150,685.17. Following the transaction, the director now owns 18,167,507 shares of the company’s stock, valued at approximately $4,321,868,240.23. This trade represents a 0.76 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 372,609 shares of company stock worth $87,647,208. 7.95% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Plato Investment Management Ltd bought a new stake in shares of Royal Caribbean Cruises during the 3rd quarter worth $26,000. Safe Harbor Fiduciary LLC purchased a new stake in shares of Royal Caribbean Cruises during the third quarter valued at $27,000. Bay Harbor Wealth Management LLC acquired a new position in shares of Royal Caribbean Cruises in the 4th quarter valued at $36,000. DiNuzzo Private Wealth Inc. increased its stake in Royal Caribbean Cruises by 257.4% in the 3rd quarter. DiNuzzo Private Wealth Inc. now owns 168 shares of the company’s stock worth $30,000 after purchasing an additional 121 shares in the last quarter. Finally, ORG Wealth Partners LLC acquired a new stake in Royal Caribbean Cruises during the 4th quarter worth about $40,000. Institutional investors own 87.53% of the company’s stock.

Royal Caribbean Cruises Trading Up 2.2 %

The company has a fifty day simple moving average of $239.12 and a 200-day simple moving average of $200.69. The stock has a market cap of $73.93 billion, a price-to-earnings ratio of 28.26, a P/E/G ratio of 0.50 and a beta of 2.59. The company has a current ratio of 0.19, a quick ratio of 0.16 and a debt-to-equity ratio of 2.63.

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.