Royal Caribbean Cruises (NYSE:RCL) Shares Down 6% – Time to Sell?

Royal Caribbean Cruises Ltd. (NYSE:RCL) was down 6% during trading on Tuesday . The stock traded as low as $208.04 and last traded at $206.14. Approximately 356,341 shares traded hands during trading, a decline of 84% from the average daily volume of 2,259,819 shares. The stock had previously closed at $219.41.

Wall Street Analyst Weigh In

Several equities research analysts have commented on RCL shares. Tigress Financial boosted their target price on shares of Royal Caribbean Cruises from $270.00 to $330.00 and gave the stock a “buy” rating in a research report on Friday, February 7th. The Goldman Sachs Group decreased their target price on shares of 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. Sanford C. Bernstein started coverage on shares of Royal Caribbean Cruises in a research report on Tuesday, November 26th. They issued an “outperform” rating and a $290.00 price objective on the stock. Macquarie boosted their price objective on shares of Royal Caribbean Cruises from $250.00 to $300.00 and gave the stock an “outperform” rating in a research report on Thursday, January 30th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Royal Caribbean Cruises from $253.00 to $295.00 and gave the stock an “overweight” rating in a research report on Friday, January 17th. Three research analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. According to MarketBeat.com, Royal Caribbean Cruises currently has a consensus rating of “Moderate Buy” and a consensus target price of $283.53.

Royal Caribbean Cruises Stock Performance

The company has a market capitalization of $57.93 billion, a PE ratio of 20.14, a price-to-earnings-growth ratio of 0.90 and a beta of 2.53. The company has a debt-to-equity ratio of 2.39, a quick ratio of 0.15 and a current ratio of 0.17. The stock’s fifty day simple moving average is $240.46 and its 200-day simple moving average is $220.86.

Royal Caribbean Cruises (NYSE:RCL) last released its earnings results on Tuesday, January 28th. The company reported $1.63 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.50 by $0.13. Royal Caribbean Cruises had a net margin of 17.46% and a return on equity of 48.97%. During the same period last year, the business posted $1.25 EPS. As a group, equities analysts predict that Royal Caribbean Cruises Ltd. will post 14.9 earnings per share for the current year.

Royal Caribbean Cruises Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 4th. Stockholders of record on Friday, March 7th will be paid a dividend of $0.75 per share. The ex-dividend date is Friday, March 7th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.39%. This is an increase from Royal Caribbean Cruises’s previous quarterly dividend of $0.55. Royal Caribbean Cruises’s dividend payout ratio is currently 28.06%.

Royal Caribbean Cruises declared that its board has approved a share buyback plan on Wednesday, February 12th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the company to reacquire up to 1.5% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other news, CFO Naftali Holtz sold 17,000 shares of the company’s stock in a transaction dated Tuesday, February 18th. The shares were sold at an average price of $261.62, for a total transaction of $4,447,540.00. Following the completion of the transaction, the chief financial officer now owns 42,127 shares of the company’s stock, valued at $11,021,265.74. This represents a 28.75 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Laura H. Bethge sold 14,992 shares of the stock in a transaction that occurred on Tuesday, February 18th. The stock was sold at an average price of $261.86, for a total transaction of $3,925,805.12. Following the sale, the insider now directly owns 21,155 shares of the company’s stock, valued at approximately $5,539,648.30. This trade represents a 41.48 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 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 insiders.

Institutional Trading of Royal Caribbean Cruises

Institutional investors and hedge funds have recently bought and sold shares of the business. Brown Brothers Harriman & Co. increased its position in Royal Caribbean Cruises by 618.8% during the 4th quarter. Brown Brothers Harriman & Co. now owns 115 shares of the company’s stock worth $27,000 after purchasing an additional 99 shares in the last quarter. Safe Harbor Fiduciary LLC acquired a new stake in Royal Caribbean Cruises during the 3rd quarter worth approximately $27,000. Fourth Dimension Wealth LLC acquired a new stake in Royal Caribbean Cruises during the 4th quarter worth approximately $35,000. Bay Harbor Wealth Management LLC acquired a new stake in Royal Caribbean Cruises during the 4th quarter worth approximately $36,000. Finally, Truvestments Capital LLC acquired a new stake in Royal Caribbean Cruises during the 4th quarter worth approximately $36,000. Institutional investors and hedge funds own 87.53% of the company’s stock.

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.