Royal Caribbean Cruises (NYSE:RCL) Shares Down 8.3% – Should You Sell?

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

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the stock. Mizuho reissued an “outperform” rating and set a $253.00 price target (down from $255.00) on shares of Royal Caribbean Cruises in a report on Thursday, January 23rd. JPMorgan Chase & Co. raised their target price on Royal Caribbean Cruises from $253.00 to $295.00 and gave the company an “overweight” rating in a research note on Friday, January 17th. Macquarie lifted their price target on Royal Caribbean Cruises from $250.00 to $300.00 and gave the company an “outperform” rating in a report on Thursday, January 30th. Sanford C. Bernstein started coverage on shares of Royal Caribbean Cruises in a report on Tuesday, November 26th. They set an “outperform” rating and a $290.00 price objective on the stock. Finally, Loop Capital initiated coverage on shares of Royal Caribbean Cruises in a research note on Tuesday, February 4th. They issued a “hold” rating and a $250.00 target price for the company. Four analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $284.12.

Royal Caribbean Cruises Stock Down 6.0 %

The company has a market capitalization 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 quick ratio of 0.15, a current ratio of 0.17 and a debt-to-equity ratio of 2.39. The firm has a fifty day simple moving average of $244.80 and a 200-day simple moving average of $216.92.

Royal Caribbean Cruises (NYSE:RCL) last issued its quarterly earnings data on Tuesday, January 28th. The company reported $1.63 earnings per share (EPS) 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 period last year, the firm posted $1.25 earnings per share. On average, equities research analysts expect that Royal Caribbean Cruises Ltd. will post 14.9 EPS for the current fiscal year.

Royal Caribbean Cruises Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, April 4th. Investors of record on Friday, March 7th will be paid a $0.75 dividend. The ex-dividend date of this dividend is Friday, March 7th. This is a positive change from Royal Caribbean Cruises’s previous quarterly dividend of $0.55. This represents a $3.00 dividend on an annualized basis and a yield of 1.32%. Royal Caribbean Cruises’s dividend payout ratio is presently 28.06%.

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

Insider Buying and Selling at Royal Caribbean Cruises

In other news, Director Richard D. Fain sold 19,500 shares of the firm’s stock in a transaction that occurred on Thursday, February 13th. The shares were sold at an average price of $256.68, for a total transaction of $5,005,260.00. Following the completion of the transaction, the director now directly owns 185,021 shares of the company’s stock, valued at $47,491,190.28. This trade represents a 9.53 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Jason T. Liberty sold 58,000 shares of Royal Caribbean Cruises stock in a transaction that occurred on Tuesday, February 18th. The shares were sold at an average price of $261.95, for a total transaction of $15,193,100.00. Following the completion of the sale, the chief executive officer now owns 143,214 shares in the company, valued at $37,514,907.30. This trade represents 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 in the last 90 days. 7.95% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Royal Caribbean Cruises

A number of large investors have recently modified their holdings of RCL. Dorsey & Whitney Trust CO LLC raised its holdings in Royal Caribbean Cruises by 2.0% during the fourth quarter. Dorsey & Whitney Trust CO LLC now owns 2,036 shares of the company’s stock worth $470,000 after acquiring an additional 39 shares in the last quarter. Ostrum Asset Management increased its position in shares of Royal Caribbean Cruises by 0.3% during the 4th quarter. Ostrum Asset Management now owns 11,610 shares of the company’s stock worth $2,678,000 after purchasing an additional 40 shares during the last quarter. Farther Finance Advisors LLC raised its stake in shares of Royal Caribbean Cruises by 1.6% during the 4th quarter. Farther Finance Advisors LLC now owns 2,730 shares of the company’s stock worth $630,000 after purchasing an additional 42 shares in the last quarter. Hemington Wealth Management boosted its holdings in shares of Royal Caribbean Cruises by 9.0% in the 4th quarter. Hemington Wealth Management now owns 533 shares of the company’s stock valued at $123,000 after buying an additional 44 shares during the last quarter. Finally, Verdence Capital Advisors LLC grew its stake in shares of Royal Caribbean Cruises by 3.6% in the fourth quarter. Verdence Capital Advisors LLC now owns 1,358 shares of the company’s stock valued at $313,000 after buying an additional 47 shares in the last quarter. 87.53% of the stock is currently owned by institutional investors and hedge funds.

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.