Royal Caribbean Cruises Ltd. (RCL) Upgraded to “Buy” by Zacks Investment Research
Zacks Investment Research upgraded shares of Royal Caribbean Cruises Ltd. (NYSE:RCL) from a hold rating to a buy rating in a report issued on Friday. The firm currently has $134.00 target price on the stock.
According to Zacks, “Royal Caribbean posted solid second-quarter 2017 results with both earnings and revenues surpassing the Zacks Consensus Estimate. In fact, given better-than-expected results in the 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. Also, the company’s shares outpaced the industry year to date. 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”
Several other research firms have also weighed in on RCL. Stifel Nicolaus reiterated a buy rating and set a $134.00 target price on shares of Royal Caribbean Cruises in a research note on Thursday. Berenberg Bank reiterated a buy rating and set a $135.00 target price on shares of Royal Caribbean Cruises in a research note on Thursday. Nomura boosted their target price on shares of Royal Caribbean Cruises from $131.00 to $135.00 and gave the company a buy rating in a research note on Wednesday. Wedbush upped their price target on shares of Royal Caribbean Cruises from $125.00 to $129.00 and gave the stock an outperform rating in a research report on Wednesday. Finally, Goldman Sachs Group, Inc. (The) upgraded shares of Royal Caribbean Cruises from a sell rating to a neutral rating and upped their price target for the stock from $99.00 to $115.00 in a research report on Wednesday. One investment analyst has rated the stock with a sell rating, three have given a hold rating and nineteen have assigned a buy rating to the company. Royal Caribbean Cruises has an average rating of Buy and a consensus target price of $117.23.
Shares of Royal Caribbean Cruises (NYSE RCL) traded down 0.19% during mid-day trading on Friday, reaching $119.69. 1,529,210 shares of the company were exchanged. Royal Caribbean Cruises has a 12 month low of $65.10 and a 12 month high of $120.96. The company’s 50-day moving average is $111.74 and its 200 day moving average is $102.72. The firm has a market capitalization of $25.75 billion, a price-to-earnings ratio of 16.79 and a beta of 1.06.
Royal Caribbean Cruises (NYSE:RCL) last released its earnings results on Tuesday, August 1st. The company reported $1.71 earnings per share for the quarter, beating the consensus estimate of $1.67 by $0.04. Royal Caribbean Cruises had a net margin of 17.73% and a return on equity of 16.71%. The firm had revenue of $2.20 billion during the quarter, compared to analyst estimates of $2.19 billion. During the same quarter in the previous year, the firm earned $1.09 earnings per share. The firm’s revenue for the quarter was up 4.3% compared to the same quarter last year. Analysts predict that Royal Caribbean Cruises will post $7.43 EPS for the current year.
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Royal Caribbean Cruises announced that its Board of Directors has authorized a share buyback plan on Friday, April 28th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to repurchase up to 2.2% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its shares are undervalued.
In other Royal Caribbean Cruises news, COO Adam M. Goldstein sold 120,000 shares of the company’s stock in a transaction dated Thursday, August 3rd. The shares were sold at an average price of $118.21, for a total value of $14,185,200.00. Following the completion of the sale, the chief operating officer now directly owns 191,252 shares of the company’s stock, valued at approximately $22,607,898.92. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Bernt Reitan sold 4,793 shares of the company’s stock in a transaction dated Wednesday, August 2nd. The shares were sold at an average price of $117.22, for a total transaction of $561,835.46. Following the completion of the sale, the director now directly owns 7,862 shares of the company’s stock, valued at $921,583.64. The disclosure for this sale can be found here. Insiders sold a total of 452,499 shares of company stock valued at $52,583,811 over the last three months. 15.30% of the stock is owned by corporate insiders.
Large investors have recently modified their holdings of the stock. BlackRock Inc. increased its stake in Royal Caribbean Cruises by 3,290.6% in the first quarter. BlackRock Inc. now owns 10,359,358 shares of the company’s stock valued at $1,016,356,000 after buying an additional 10,053,823 shares during the last quarter. Vanguard Group Inc. increased its stake in Royal Caribbean Cruises by 3.5% in the first quarter. Vanguard Group Inc. now owns 16,504,950 shares of the company’s stock valued at $1,619,301,000 after buying an additional 555,260 shares during the last quarter. State of New Jersey Common Pension Fund D bought a new stake in Royal Caribbean Cruises during the second quarter valued at about $55,926,000. Wells Fargo & Company MN increased its stake in Royal Caribbean Cruises by 50.6% in the first quarter. Wells Fargo & Company MN now owns 1,454,631 shares of the company’s stock valued at $142,714,000 after buying an additional 488,740 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA increased its stake in Royal Caribbean Cruises by 115.2% in the first quarter. Massachusetts Financial Services Co. MA now owns 845,673 shares of the company’s stock valued at $82,969,000 after buying an additional 452,620 shares during the last quarter. 71.23% of the stock is owned by institutional investors.
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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