Royal Caribbean Cruises (NYSE:RCL) Sets New 1-Year High Following Earnings Beat

Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) shares hit a new 52-week high on Wednesday following a stronger than expected earnings report. The company traded as high as $269.96 and last traded at $264.71, with a volume of 8086822 shares changing hands. The stock had previously closed at $236.82.

The company reported $1.63 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.50 by $0.13. Royal Caribbean Cruises had a return on equity of 48.97% and a net margin of 17.46%. During the same period last year, the business posted $1.25 earnings per share.

Royal Caribbean Cruises Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, January 13th. Investors of record on Friday, December 27th were issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.83%. The ex-dividend date of this dividend was Friday, December 27th. Royal Caribbean Cruises's dividend payout ratio (DPR) is 20.58%.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the stock. Truist Financial raised their price target on shares of Royal Caribbean Cruises from $204.00 to $272.00 and gave the stock a "buy" rating in a research report on Monday, December 2nd. Bank of America raised their target price on shares of Royal Caribbean Cruises from $210.00 to $240.00 and gave the stock a "neutral" rating in a report on Wednesday, November 13th. Susquehanna upped their price target on shares of Royal Caribbean Cruises from $245.00 to $305.00 and gave the company a "positive" rating in a report on Wednesday. Barclays lifted their price objective on Royal Caribbean Cruises from $287.00 to $308.00 and gave the company an "overweight" rating in a research note on Wednesday. Finally, The Goldman Sachs Group lowered their target price on Royal Caribbean Cruises from $275.00 to $270.00 and set a "buy" rating on the stock in a research note on Friday, January 24th. Three research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $274.19.

Insider Buying and Selling

In other news, EVP Harri U. Kulovaara sold 3,256 shares of Royal Caribbean Cruises stock in a transaction that occurred on Wednesday, November 20th. The stock was sold at an average price of $234.62, for a total value of $763,922.72. Following the sale, the executive vice president now directly owns 22,348 shares of the company's stock, valued at $5,243,287.76. The trade was a 12.72 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Arne Alexander Wilhelmsen sold 230,000 shares of the stock in a transaction on Tuesday, November 19th. The shares were sold at an average price of $233.62, for a total value of $53,732,600.00. Following the completion of the transaction, the director now directly owns 18,556,860 shares of the company's stock, valued at approximately $4,335,253,633.20. This represents a 1.22 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 372,609 shares of company stock valued at $87,647,208. 7.95% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Royal Caribbean Cruises

A number of hedge funds have recently modified their holdings of the business. Park Avenue Securities LLC grew its stake in Royal Caribbean Cruises by 20.1% during the 4th quarter. Park Avenue Securities LLC now owns 6,630 shares of the company's stock valued at $1,530,000 after acquiring an additional 1,111 shares in the last quarter. Sanctuary Advisors LLC grew its position in shares of Royal Caribbean Cruises by 76.1% in the third quarter. Sanctuary Advisors LLC now owns 28,991 shares of the company's stock valued at $5,142,000 after purchasing an additional 12,530 shares in the last quarter. Wedge Capital Management L L P NC increased its holdings in shares of Royal Caribbean Cruises by 2.6% in the third quarter. Wedge Capital Management L L P NC now owns 289,518 shares of the company's stock valued at $51,349,000 after purchasing an additional 7,298 shares during the last quarter. Souders Financial Advisors acquired a new stake in shares of Royal Caribbean Cruises in the third quarter valued at approximately $800,000. Finally, Merit Financial Group LLC lifted its position in Royal Caribbean Cruises by 541.0% during the fourth quarter. Merit Financial Group LLC now owns 9,897 shares of the company's stock worth $2,283,000 after buying an additional 8,353 shares in the last quarter. 87.53% of the stock is currently owned by institutional investors and hedge funds.

Royal Caribbean Cruises Price Performance

The company has a debt-to-equity ratio of 2.39, a current ratio of 0.17 and a quick ratio of 0.16. The stock has a 50 day simple moving average of $240.36 and a two-hundred day simple moving average of $201.89. The company has a market cap of $71.65 billion, a price-to-earnings ratio of 24.93, a price-to-earnings-growth ratio of 0.55 and a beta of 2.59.

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.