Royal Caribbean Cruises Ltd. (NYSE:RCL) Receives Average Recommendation of “Moderate Buy” from Brokerages

Royal Caribbean Cruises Ltd. (NYSE:RCL) has been assigned an average rating of “Moderate Buy” from the seventeen research firms that are presently covering the stock, Marketbeat.com reports. Two investment analysts have rated the stock with a hold recommendation and fifteen have issued a buy recommendation on the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $283.53.

Several research analysts recently commented on RCL shares. Sanford C. Bernstein began coverage on shares of Royal Caribbean Cruises in a research note on Tuesday, November 26th. They issued an “outperform” rating and a $290.00 target price on the stock. Argus increased their target price on shares of Royal Caribbean Cruises from $280.00 to $305.00 and gave the stock a “buy” rating in a report on Wednesday, January 29th. Mizuho restated an “outperform” rating and set a $253.00 price target (down previously from $255.00) on shares of Royal Caribbean Cruises in a report on Thursday, January 23rd. Citigroup increased their price objective on Royal Caribbean Cruises from $283.00 to $304.00 and gave the stock a “buy” rating in a report on Wednesday, January 29th. Finally, JPMorgan Chase & Co. raised their price target on Royal Caribbean Cruises from $253.00 to $295.00 and gave the stock an “overweight” rating in a research note on Friday, January 17th.

Royal Caribbean Cruises Stock Performance

Royal Caribbean Cruises stock opened at $225.83 on Tuesday. The firm has a fifty day simple moving average of $239.97 and a two-hundred day simple moving average of $222.52. Royal Caribbean Cruises has a twelve month low of $125.06 and a twelve month high of $277.08. The company has a market capitalization of $60.78 billion, a PE ratio of 21.13, a P/E/G 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.

Royal Caribbean Cruises (NYSE:RCL) last issued its earnings results on Tuesday, January 28th. The company reported $1.63 earnings per share for the quarter, beating 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 in the previous year, the firm posted $1.25 earnings per share. Research analysts expect that Royal Caribbean Cruises will post 14.9 EPS for the current year.

Royal Caribbean Cruises announced that its Board of Directors has initiated a share repurchase plan on Wednesday, February 12th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to reacquire up to 1.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its stock is undervalued.

Royal Caribbean Cruises Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, April 4th. Investors of record on Friday, March 7th will be given a dividend of $0.75 per share. The ex-dividend date of this dividend 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 1.33%. Royal Caribbean Cruises’s dividend payout ratio (DPR) is 28.06%.

Insider Transactions at Royal Caribbean Cruises

In other news, insider Laura H. Bethge sold 14,992 shares of the stock in a transaction that occurred on Tuesday, February 18th. The shares were sold at an average price of $261.86, for a total value of $3,925,805.12. Following the transaction, the insider now owns 21,155 shares in the company, valued at $5,539,648.30. This represents a 41.48 % 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 that occurred on Tuesday, February 18th. The stock was sold at an average price of $261.95, for a total transaction of $15,193,100.00. Following the completion of the transaction, the chief executive officer now owns 143,214 shares in the company, 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 sold 109,492 shares of company stock worth $28,571,705 over the last three months. 7.95% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Royal Caribbean Cruises

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Venturi Wealth Management LLC lifted its position in shares of 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 buying an additional 1,804 shares in the last quarter. Park Avenue Securities LLC lifted its holdings in Royal Caribbean Cruises by 20.1% during the fourth quarter. Park Avenue Securities LLC now owns 6,630 shares of the company’s stock valued at $1,530,000 after purchasing an additional 1,111 shares in the last quarter. Sanctuary Advisors LLC boosted its position in shares of Royal Caribbean Cruises by 76.1% in the third 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. purchased a new stake in shares of Royal Caribbean Cruises in the fourth quarter worth $231,000. Finally, Principal Financial Group Inc. raised its position in shares of Royal Caribbean Cruises by 2.7% during the 4th quarter. Principal Financial Group Inc. now owns 291,027 shares of the company’s stock valued at $67,137,000 after purchasing an additional 7,740 shares during the period. 87.53% of the stock is currently owned by hedge funds and other institutional investors.

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.