Royal Caribbean Cruises Ltd. $RCL Shares Sold by Capital World Investors

Capital World Investors decreased its stake in shares of Royal Caribbean Cruises Ltd. (NYSE:RCL) by 5.5% during the 3rd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 16,987,565 shares of the company’s stock after selling 995,439 shares during the period. Royal Caribbean Cruises comprises about 0.8% of Capital World Investors’ investment portfolio, making the stock its 27th biggest holding. Capital World Investors owned about 0.06% of Royal Caribbean Cruises worth $5,497,069,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of RCL. Evolution Wealth Management Inc. bought a new stake in Royal Caribbean Cruises in the second quarter valued at about $31,000. GGM Financials LLC acquired a new position in Royal Caribbean Cruises in the third quarter worth $33,000. Financial Gravity Companies Inc. bought a new stake in shares of Royal Caribbean Cruises during the 2nd quarter valued at about $38,000. Dogwood Wealth Management LLC lifted its holdings in Royal Caribbean Cruises by 318.8% in the third quarter. Dogwood Wealth Management LLC now owns 134 shares of the company’s stock worth $43,000 after acquiring an additional 102 shares during the last quarter. Finally, Physician Wealth Advisors Inc. raised its position in shares of Royal Caribbean Cruises by 38.1% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 214 shares of the company’s stock worth $69,000 after purchasing an additional 59 shares during the period. 87.53% of the stock is currently owned by institutional investors and hedge funds.

Royal Caribbean Cruises Trading Up 4.6%

Shares of NYSE:RCL opened at $290.96 on Tuesday. Royal Caribbean Cruises Ltd. has a 1-year low of $164.01 and a 1-year high of $366.50. The company has a 50 day moving average price of $304.40 and a 200 day moving average price of $301.83. The stock has a market capitalization of $78.71 billion, a price-to-earnings ratio of 18.64, a PEG ratio of 0.91 and a beta of 1.87. The company has a debt-to-equity ratio of 1.77, a quick ratio of 0.16 and a current ratio of 0.18.

Royal Caribbean Cruises (NYSE:RCL) last posted its quarterly earnings data on Thursday, January 29th. The company reported $2.80 EPS for the quarter, hitting analysts’ consensus estimates of $2.80. Royal Caribbean Cruises had a net margin of 23.80% and a return on equity of 45.06%. The firm had revenue of $4.26 billion during the quarter, compared to analyst estimates of $4.28 billion. During the same quarter last year, the business posted $1.63 EPS. The company’s revenue was up 13.2% on a year-over-year basis. On average, research analysts anticipate that Royal Caribbean Cruises Ltd. will post 14.9 EPS for the current fiscal year.

Royal Caribbean Cruises Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, April 3rd. Investors of record on Friday, March 6th will be paid a $1.50 dividend. This represents a $6.00 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend is Friday, March 6th. This is a positive change from Royal Caribbean Cruises’s previous quarterly dividend of $1.00. Royal Caribbean Cruises’s dividend payout ratio (DPR) is presently 38.44%.

Royal Caribbean Cruises announced that its Board of Directors has approved a share buyback program on Wednesday, December 10th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the company to buy up to 2.6% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on RCL shares. Barclays increased their price objective on shares of Royal Caribbean Cruises from $324.00 to $361.00 and gave the stock an “overweight” rating in a report on Friday, January 30th. Bank of America increased their price target on Royal Caribbean Cruises from $325.00 to $330.00 and gave the stock a “neutral” rating in a research note on Monday, January 12th. The Goldman Sachs Group raised their target price on shares of Royal Caribbean Cruises from $310.00 to $370.00 and gave the company a “buy” rating in a research note on Friday, January 30th. Citigroup upped their price target on shares of Royal Caribbean Cruises from $332.00 to $398.00 and gave the stock a “buy” rating in a research note on Monday, February 2nd. Finally, TD Cowen reiterated a “buy” rating on shares of Royal Caribbean Cruises in a report on Tuesday, January 13th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $348.29.

Insider Activity at Royal Caribbean Cruises

In other Royal Caribbean Cruises news, CEO Jason T. Liberty sold 90,910 shares of the business’s stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $326.81, for a total value of $29,710,297.10. Following the completion of the sale, the chief executive officer directly owned 218,822 shares of the company’s stock, valued at $71,513,217.82. The trade was a 29.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Arne Alexander Wilhelmsen sold 356,026 shares of the company’s stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $318.39, for a total transaction of $113,355,118.14. Following the completion of the sale, the director owned 16,681,386 shares of the company’s stock, valued at $5,311,186,488.54. This represents a 2.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 1,967,319 shares of company stock worth $626,681,935. Insiders own 6.95% of the company’s stock.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises (NYSE: RCL), operating as part of the Royal Caribbean Group, is a global cruise company that develops, markets and operates passenger cruise ships. The company operates multiple consumer-facing cruise brands that offer short- and long-duration itineraries and a range of onboard experiences. Its core activities include itineraries and voyage operations, guest services and hospitality, onboard food and beverage, entertainment and recreation programming, and the commercial activities needed to sell and support cruises through both direct and travel‑agent channels.

Royal Caribbean’s ships serve a broad set of geographies worldwide, regularly deploying vessels in the Caribbean, North America (including Alaska), Europe, Asia, Australia and South America.