Zacks Investment Research Lowers Royal Caribbean Cruises Ltd. (RCL) to Hold
Zacks Investment Research downgraded shares of Royal Caribbean Cruises Ltd. (NYSE:RCL) from a buy rating to a hold rating in a research report released on Wednesday morning.
According to Zacks, “Royal Caribbean’s shares have outpaced the Zacks classified Leisure & Recreation Services industry in the last six months. The company expects strong revenue growth in 2017 given solid booking trends. Demand is likely to remain strong for the company’s North American and European products and its Asia-Pacific itineraries are also likely to continue performing stoutly. Its ship innovation, technology investments and various profit-generating initiatives should lead to higher yields. The company has been successful in dealing with the volatility in fuel prices given its environmental efforts. Its Double-Double program aimed at improving revenue yields, control costs and moderate capacity growth also bodes well. Yet, higher costs in the near-term and adverse forex translations might hamper its profitability. Despite growth opportunities, lingering global uncertainties in China and Europe are likely to affect its international profits.”
Other analysts have also recently issued reports about the stock. Deutsche Bank AG lowered their target price on shares of Royal Caribbean Cruises from $102.00 to $91.00 and set a hold rating on the stock in a research note on Tuesday, May 2nd. Stifel Nicolaus increased their target price on shares of Royal Caribbean Cruises from $115.00 to $125.00 and gave the stock a buy rating in a research note on Monday, May 1st. Wells Fargo & Company reiterated an outperform rating and issued a $119.50 target price (up from $117.50) on shares of Royal Caribbean Cruises in a research note on Tuesday, May 2nd. Wedbush increased their target price on shares of Royal Caribbean Cruises from $106.00 to $117.00 and gave the stock an outperform rating in a research note on Tuesday, April 25th. Finally, Goldman Sachs Group, Inc. (The) increased their target price on shares of Royal Caribbean Cruises from $90.00 to $94.00 and gave the stock a sell rating in a research note on Monday, May 1st. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and sixteen have given a buy rating to the company. Royal Caribbean Cruises currently has a consensus rating of Buy and an average price target of $102.57.
Shares of Royal Caribbean Cruises (NYSE RCL) traded down 0.33% during midday trading on Wednesday, hitting $110.96. The stock had a trading volume of 108,597 shares. Royal Caribbean Cruises has a 52 week low of $64.95 and a 52 week high of $114.50. The company has a market cap of $23.86 billion, a price-to-earnings ratio of 17.15 and a beta of 1.08. The stock’s 50-day moving average price is $109.53 and its 200 day moving average price is $97.03.
Royal Caribbean Cruises (NYSE:RCL) last posted its earnings results on Friday, April 28th. The company reported $0.99 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.92 by $0.07. Royal Caribbean Cruises had a net margin of 16.29% and a return on equity of 15.91%. The business had revenue of $2.01 billion for the quarter, compared to analysts’ expectations of $2.02 billion. During the same period in the prior year, the company posted $0.57 EPS. The business’s revenue for the quarter was up 4.7% compared to the same quarter last year. On average, equities analysts forecast that Royal Caribbean Cruises will post $7.23 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 5th. Investors of record on Friday, June 2nd will be given a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 1.72%. The ex-dividend date of this dividend is Wednesday, May 31st. Royal Caribbean Cruises’s payout ratio is presently 29.68%.
In related news, EVP Harri U. Kulovaara sold 7,527 shares of Royal Caribbean Cruises stock in a transaction on Monday, May 1st. The shares were sold at an average price of $110.00, for a total value of $827,970.00. Following the transaction, the executive vice president now owns 29,667 shares in the company, valued at approximately $3,263,370. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Richard D. Fain sold 20,000 shares of Royal Caribbean Cruises stock in a transaction on Thursday, April 13th. The stock was sold at an average price of $94.92, for a total transaction of $1,898,400.00. Following the completion of the transaction, the chief executive officer now owns 1,027,741 shares in the company, valued at approximately $97,553,175.72. The disclosure for this sale can be found here. In the last quarter, insiders sold 47,527 shares of company stock worth $4,881,770. 15.30% of the stock is owned by corporate insiders.
A number of institutional investors have recently modified their holdings of the company. NEXT Financial Group Inc boosted its position in shares of Royal Caribbean Cruises by 25.0% in the first quarter. NEXT Financial Group Inc now owns 1,000 shares of the company’s stock worth $107,000 after buying an additional 200 shares during the last quarter. Advisors Preferred LLC acquired a new position in shares of Royal Caribbean Cruises during the first quarter worth approximately $103,000. Oppenheimer Asset Management Inc. acquired a new position in shares of Royal Caribbean Cruises during the first quarter worth approximately $119,000. Whittier Trust Co. boosted its position in shares of Royal Caribbean Cruises by 24.4% in the first quarter. Whittier Trust Co. now owns 1,266 shares of the company’s stock worth $124,000 after buying an additional 248 shares during the last quarter. Finally, Acadian Asset Management LLC boosted its position in shares of Royal Caribbean Cruises by 447.1% in the first quarter. Acadian Asset Management LLC now owns 1,778 shares of the company’s stock worth $174,000 after buying an additional 1,453 shares during the last quarter. Institutional investors own 71.15% of the company’s stock.
Royal Caribbean Cruises Company Profile
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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