Royal Caribbean Cruises (NYSE:RCL) Shares Gap Up on Analyst Upgrade

Royal Caribbean Cruises Ltd. (NYSE:RCL) shares gapped up before the market opened on Tuesday after Bank of America upgraded the stock from a neutral rating to a buy rating. The stock had previously closed at $242.59, but opened at $257.20. Bank of America now has a $330.00 price target on the stock. Royal Caribbean Cruises shares last traded at $259.0360, with a volume of 679,877 shares.

A number of other research analysts have also commented on RCL. Susquehanna lifted their price objective on shares of Royal Caribbean Cruises from $350.00 to $372.00 and gave the company a “positive” rating in a research note on Wednesday, July 29th. Morgan Stanley increased their target price on shares of Royal Caribbean Cruises from $280.00 to $300.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. BMO Capital Markets reissued an “outperform” rating and set a $370.00 price target on shares of Royal Caribbean Cruises in a report on Wednesday, September 23rd. Loop Capital began coverage on Royal Caribbean Cruises in a research report on Monday, June 1st. They issued a “hold” rating and a $304.00 price target on the stock. Finally, Tigress Financial reaffirmed a “buy” rating and set a $425.00 price objective on shares of Royal Caribbean Cruises in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $357.80.

Insider Transactions at Royal Caribbean Cruises

In related news, CEO Michael Bayley sold 12,811 shares of the firm’s stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $315.99, for a total value of $4,048,147.89. Following the completion of the sale, the chief executive officer owned 45,297 shares in the company, valued at $14,313,399.03. This trade represents a 22.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 6.44% of the stock is owned by corporate insiders.

Key Stories Impacting Royal Caribbean Cruises

Here are the key news stories impacting Royal Caribbean Cruises this week:

• Positive Sentiment: Bank of America upgraded RCL to Buy from Neutral and set a $330 price target, citing the roughly 26% share-price pullback. The decline reduced RCL’s estimated 2027 enterprise-value-to-EBITDA multiple to below 10x, versus a recent average near 12x. Royal Caribbean upgraded to Buy at Bank of America as selloff creates entry point
• Positive Sentiment: Deutsche Bank also raised RCL to Buy from Hold, saying the recent slump creates an attractive entry point for a high-quality travel company. The upgrades suggest analysts view the selloff as valuation-driven rather than a deterioration in cruise demand. Deutsche Bank lifts Royal Caribbean to Buy, sees attractive entry point
• Positive Sentiment: Analysts continue to cite resilient travel demand and Royal Caribbean’s operating quality as reasons for optimism. Tigress Financial reaffirmed its Buy rating with a $425 target, while Bank of America and Deutsche Bank characterized RCL as a “quality business on sale.” RCL Stock In Focus — Wall Street Turns Bullish On Cruise Line Operator As Travel Demand Stays Strong
• Positive Sentiment: Royal Caribbean’s investment in Sandals Resorts is expected to contribute to EBITDA and provide another potential earnings-growth catalyst, although the timing and scale of benefits remain dependent on travel conditions. Royal Caribbean’s Sandals Investment Set to Boost EBITDA Despite Macro Risks
• Neutral Sentiment: The bullish analyst calls come ahead of Carnival’s earnings report, which could provide fresh read-through on booking trends, pricing and broader cruise-industry demand. Investors may therefore expect elevated sector-related volatility.
• Negative Sentiment: Despite the upgrades, analysts acknowledge macroeconomic risks facing travel spending. RCL also remains below its 50-day and 200-day moving averages, reflecting ongoing investor caution after the recent pullback.

Institutional Trading of Royal Caribbean Cruises

Hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in Royal Caribbean Cruises during the second quarter worth about $6,549,422,000. Capital International Investors increased its holdings in Royal Caribbean Cruises by 9.8% in the fourth quarter. Capital International Investors now owns 36,165,358 shares of the company’s stock valued at $10,088,156,000 after buying an additional 3,215,382 shares in the last quarter. Primecap Management Co. CA purchased a new position in Royal Caribbean Cruises in the second quarter valued at about $669,804,000. Jupiter Topco LLC acquired a new stake in shares of Royal Caribbean Cruises during the 2nd quarter valued at approximately $597,350,000. Finally, Norges Bank acquired a new stake in shares of Royal Caribbean Cruises during the 4th quarter valued at approximately $456,752,000. 87.53% of the stock is owned by institutional investors and hedge funds.

Royal Caribbean Cruises Stock Performance

The stock’s 50-day moving average price is $283.21 and its 200-day moving average price is $281.49. The company has a market capitalization of $69.05 billion, a price-to-earnings ratio of 15.98, a P/E/G ratio of 0.80 and a beta of 1.74. The company has a debt-to-equity ratio of 2.03, a quick ratio of 0.19 and a current ratio of 0.21.

Royal Caribbean Cruises (NYSE:RCL) last released its quarterly earnings results on Tuesday, July 28th. The company reported $4.21 earnings per share for the quarter, topping analysts’ consensus estimates of $3.98 by $0.23. Royal Caribbean Cruises had a return on equity of 43.33% and a net margin of 23.54%.The business had revenue of $4.83 billion for the quarter, compared to analysts’ expectations of $4.82 billion. During the same quarter in the prior year, the firm posted $4.38 EPS. The company’s revenue was up 6.5% compared to the same quarter last year. Royal Caribbean Cruises has set its FY 2026 guidance at 17.730-17.870 EPS and its Q3 2026 guidance at 6.260-6.360 EPS. As a group, equities research analysts expect that Royal Caribbean Cruises Ltd. will post 17.78 earnings per share for the current year.

Royal Caribbean Cruises Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th will be issued a $1.50 dividend. The ex-dividend date of this dividend is Thursday, September 17th. This represents a $6.00 annualized dividend and a yield of 2.3%. Royal Caribbean Cruises’s dividend payout ratio is 37.08%.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd., now known as Royal Caribbean Group, is a global cruise company that operates vacation experiences through a portfolio of cruise brands. Its principal brands include Royal Caribbean International, Celebrity Cruises and Silversea Cruises, each serving different segments of the leisure travel market, from family-oriented cruises and large-scale resort-style ships to premium and luxury expedition voyages.

The company offers cruises to destinations around the world, including the Caribbean, Europe, Alaska, Asia, Australia, New Zealand and other international regions.