Royal Caribbean Cruises Ltd. (RCL) Lowered to “Hold” at Zacks Investment Research
Zacks Investment Research lowered shares of Royal Caribbean Cruises Ltd. (NYSE:RCL) from a buy rating to a hold rating in a research note released on Wednesday morning.
According to Zacks, “Royal Caribbean shares have outpaced the industry in the past year. Given solid performance in the last reported quarter along with favorable booking trends, the company raised its full-year 2017 earnings view. Going forward, the company’s sailings in the U.S., Europe, Alaska, Baltic and Asia, are likely to continue performing strongly. The company thus remains positioned to witness another record year and achieve its targets under the Double-Double program. While, its capacity growth should aid in meeting increased demand, ship innovation and technology investments should lead to higher yields. However, higher costs might hurt the company’s profitability in the near term. Further, lingering global uncertainties in key operating regions, along with negative currency translation remain concerns.”
A number of other equities research analysts also recently weighed in on RCL. BidaskClub downgraded Royal Caribbean Cruises from a strong-buy rating to a buy rating in a report on Monday, July 31st. UBS AG reissued a buy rating and set a $131.00 target price (up previously from $112.00) on shares of Royal Caribbean Cruises in a report on Tuesday, August 8th. Buckingham Research lifted their target price on Royal Caribbean Cruises to $149.00 and gave the stock a buy rating in a report on Wednesday, August 2nd. Stifel Nicolaus reissued a buy rating and set a $134.00 target price on shares of Royal Caribbean Cruises in a report on Thursday, August 3rd. Finally, Goldman Sachs Group, Inc. (The) raised Royal Caribbean Cruises from a sell rating to a neutral rating and lifted their target price for the stock from $99.00 to $115.00 in a report on Wednesday, August 2nd. Two equities research analysts have rated the stock with a sell rating, two have given a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the stock. The stock presently has an average rating of Buy and an average price target of $118.49.
Shares of Royal Caribbean Cruises (RCL) opened at 120.92 on Wednesday. The firm has a 50-day moving average of $119.72 and a 200 day moving average of $108.73. The company has a market cap of $26.01 billion, a price-to-earnings ratio of 16.96 and a beta of 1.03. Royal Caribbean Cruises has a one year low of $65.45 and a one year high of $125.00.
Royal Caribbean Cruises (NYSE:RCL) last posted its earnings results on Tuesday, August 1st. The company reported $1.71 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.67 by $0.04. Royal Caribbean Cruises had a return on equity of 16.71% and a net margin of 17.73%. The company had revenue of $2.20 billion during the quarter, compared to the consensus estimate of $2.19 billion. During the same quarter last year, the firm earned $1.09 earnings per share. The company’s revenue was up 4.3% on a year-over-year basis. Equities research analysts anticipate that Royal Caribbean Cruises will post $7.44 EPS for the current year.
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The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 11th. Shareholders of record on Friday, September 22nd will be given a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 1.98%. The ex-dividend date is Thursday, September 21st. This is a boost from Royal Caribbean Cruises’s previous quarterly dividend of $0.48. Royal Caribbean Cruises’s payout ratio is currently 26.97%.
In other Royal Caribbean Cruises news, CEO Richard D. Fain sold 20,000 shares of Royal Caribbean Cruises stock in a transaction dated Wednesday, September 13th. The stock was sold at an average price of $121.29, for a total value of $2,425,800.00. Following the transaction, the chief executive officer now owns 927,741 shares in the company, valued at $112,525,705.89. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Harri U. Kulovaara sold 7,580 shares of Royal Caribbean Cruises stock in a transaction dated Monday, August 14th. The shares were sold at an average price of $119.61, for a total value of $906,643.80. Following the completion of the transaction, the executive vice president now owns 23,493 shares in the company, valued at approximately $2,809,997.73. The disclosure for this sale can be found here. In the last quarter, insiders sold 480,079 shares of company stock worth $56,139,855. Company insiders own 15.30% of the company’s stock.
Several large investors have recently added to or reduced their stakes in RCL. TLP Group LLC bought a new stake in shares of Royal Caribbean Cruises during the second quarter worth about $105,000. NEXT Financial Group Inc grew its holdings in shares of Royal Caribbean Cruises by 25.0% during the first quarter. NEXT Financial Group Inc now owns 1,000 shares of the company’s stock worth $107,000 after purchasing an additional 200 shares during the last quarter. Acrospire Investment Management LLC grew its holdings in shares of Royal Caribbean Cruises by 25.0% during the second quarter. Acrospire Investment Management LLC now owns 1,000 shares of the company’s stock worth $109,000 after purchasing an additional 200 shares during the last quarter. Oppenheimer Asset Management Inc. bought a new stake in shares of Royal Caribbean Cruises during the first quarter worth about $119,000. Finally, Pinebridge Investments L.P. bought a new stake in shares of Royal Caribbean Cruises during the second quarter worth about $121,000. Institutional investors own 71.60% of the company’s stock.
About Royal Caribbean Cruises
Royal Caribbean Cruises Ltd. is a cruise company. The Company owns and operates three global cruise brands: Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises (Global Brands). The Company also own joint venture interest in the German brand TUI Cruises, interest in the Spanish brand Pullmantur and interest in the Chinese brand SkySea Cruises (collectively, Partner Brands).
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