Key Points
- Director sale: Maritza Montiel sold 400 Royal Caribbean shares for $122,884, reducing her position by 2.94% to 13,202 shares.
- Strong results and outlook: Royal Caribbean reported quarterly EPS of $6.57, ahead of the $6.38 analyst consensus, on $5.59 billion in revenue. Analysts expect $17.95 in full-year EPS, while the stock carries a “Moderate Buy” consensus rating and a $355.62 price target.
- Key risks remain: Ticket revenue per passenger declined for a second consecutive quarter, and the planned debt-funded, approximately $3 billion acquisition of a 50% stake in Sandals and Beaches Resorts could increase leverage.
Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) Director Maritza Montiel sold 400 shares of Royal Caribbean Cruises stock in a transaction that occurred on Friday, October 30th. The shares were sold at an average price of $307.21, for a total transaction of $122,884.00. Following the completion of the transaction, the director owned 13,202 shares of the company's stock, valued at $4,055,786.42. This trade represents a 2.94% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link.
Royal Caribbean Cruises Stock Down 1.1%
Shares of RCL opened at $306.99 on Friday. The company has a market capitalization of $82.11 billion, a P/E ratio of 18.08, a PEG ratio of 1.08 and a beta of 1.82. Royal Caribbean Cruises Ltd. has a one year low of $222.22 and a one year high of $356.39. The business's 50 day simple moving average is $271.94 and its 200-day simple moving average is $286.76. The company has a debt-to-equity ratio of 1.69, a current ratio of 0.22 and a quick ratio of 0.19.
Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last announced its earnings results on Tuesday, October 27th. The company reported $6.57 earnings per share for the quarter, beating analysts' consensus estimates of $6.38 by $0.19. Royal Caribbean Cruises had a return on equity of 43.40% and a net margin of 23.78%. The company had revenue of $5.59 billion during the quarter, compared to analyst estimates of $5.61 billion. During the same period last year, the company posted $5.75 earnings per share. The firm's quarterly revenue was up 8.8% compared to the same quarter last year. As a group, sell-side analysts predict that Royal Caribbean Cruises Ltd. will post 17.95 EPS for the current fiscal year.
Royal Caribbean Cruises Dividend Announcement
The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th were issued a dividend of $1.50 per share. The ex-dividend date of this dividend was Thursday, September 17th. This represents a $6.00 dividend on an annualized basis and a yield of 2.0%. Royal Caribbean Cruises's dividend payout ratio is currently 35.52%.
Hedge Funds Weigh In On Royal Caribbean Cruises
Hedge funds have recently added to or reduced their stakes in the company. Rakuten Investment Management Inc. acquired a new position in Royal Caribbean Cruises during the 3rd quarter valued at about $11,740,000. Third View Private Wealth LLC acquired a new stake in shares of Royal Caribbean Cruises during the 3rd quarter worth approximately $219,000. Provenance Wealth Advisors LLC raised its stake in shares of Royal Caribbean Cruises by 20,527.3% during the third quarter. Provenance Wealth Advisors LLC now owns 2,269 shares of the company's stock worth $603,000 after buying an additional 2,258 shares during the last quarter. Lyell Wealth Management LP raised its stake in shares of Royal Caribbean Cruises by 16.4% during the third quarter. Lyell Wealth Management LP now owns 2,235 shares of the company's stock worth $594,000 after buying an additional 315 shares during the last quarter. Finally, Integrity Alliance LLC. raised its stake in shares of Royal Caribbean Cruises by 94.3% during the third quarter. Integrity Alliance LLC. now owns 3,683 shares of the company's stock worth $979,000 after buying an additional 1,787 shares during the last quarter. Institutional investors own 87.53% of the company's stock.
Analyst Ratings Changes
A number of equities analysts have weighed in on the stock. Citigroup boosted their target price on shares of Royal Caribbean Cruises from $362.00 to $364.00 and gave the stock a "buy" rating in a research note on Thursday. Weiss Ratings cut shares of Royal Caribbean Cruises from a "buy (b-)" rating to a "hold (c)" rating in a research note on Wednesday. BNP Paribas Exane raised their price target on shares of Royal Caribbean Cruises from $357.00 to $392.00 and gave the company an "outperform" rating in a report on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft raised shares of Royal Caribbean Cruises from a "hold" rating to a "buy" rating and raised their price target for the company from $299.00 to $330.00 in a report on Monday, September 28th. Finally, Freedom Broker upgraded shares of Royal Caribbean Cruises from a "hold" rating to a "buy" rating and boosted their price objective for the stock from $351.00 to $379.00 in a research report on Wednesday. Twenty-one research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $355.62.
Check Out Our Latest Stock Analysis on Royal Caribbean Cruises
Royal Caribbean Cruises News Summary
Here are the key news stories impacting Royal Caribbean Cruises this week:
- Positive Sentiment: Royal Caribbean exceeded third-quarter earnings expectations, reporting adjusted EPS of $6.57 versus a $6.38 consensus estimate. Revenue reached approximately $5.59 billion, and management raised full-year 2026 adjusted EPS guidance to $17.85-$17.95. Royal Caribbean Cruises Shares Gap Up After Earnings Beat
- Positive Sentiment: Analyst sentiment remains favorable. Citigroup raised its price target to $364 while maintaining a Buy rating, and Freedom Broker upgraded RCL from Hold to Buy with a $379 target. Wells Fargo also expects the stock to rise. Citigroup Royal Caribbean price target
- Positive Sentiment: Strong demand from affluent travelers, high occupancy, improving EBITDA margins and continued onboard spending support Royal Caribbean’s premium positioning. A better-than-expected cruise-industry quarter also lifted sentiment across the sector. Royal Caribbean Strong Earnings Results
- Neutral Sentiment: The company is hedging more than 60% of expected 2026 fuel costs, which should reduce near-term exposure to energy-price volatility. However, fuel remains an industry-wide cost concern. Cruise companies aim to keep fuel costs down
- Negative Sentiment: Ticket revenue per passenger per day declined for a second consecutive quarter. Analysts say onboard spending and premium destinations have offset the weakness, but additional Caribbean capacity could further pressure pricing and net yields. Royal Caribbean Beats Its Guidance, But Ticket Prices Fall
- Negative Sentiment: Royal Caribbean plans to fund its approximately $3 billion acquisition of a 50% stake in Sandals and Beaches Resorts with debt. The deal could expand its vacation ecosystem and capture more customer spending, but it will increase leverage and expose the company to integration and economic-downturn risks. Could Royal Caribbean Stock Survive a Sandals Deal Gone Wrong?
About Royal Caribbean Cruises
(
Get Free Report)
Royal Caribbean Cruises Ltd., doing business as Royal Caribbean Group (NYSE: RCL), is a global cruise company that operates vacation cruises and related travel experiences. Its fleet visits destinations across the Caribbean, Europe, Alaska, Asia, Australia, and other regions, with itineraries that typically include onboard entertainment, dining, accommodations, recreational activities, and shore excursions.
The company's principal brands include Royal Caribbean International, Celebrity Cruises, and Silversea Cruises.
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