Royal Caribbean Cruises (NYSE:RCL) Shares Down 6% - Here's Why

Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report)'s share price traded down 6% during mid-day trading on Tuesday . The company traded as low as $208.04 and last traded at $206.14. 356,341 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 2,259,819 shares. The stock had previously closed at $219.41.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Loop Capital raised shares of Royal Caribbean Cruises from a "hold" rating to a "buy" rating and set a $250.00 price target on the stock in a report on Wednesday, March 5th. Truist Financial increased their price target on shares of Royal Caribbean Cruises from $204.00 to $272.00 and gave the stock a "buy" rating in a report on Monday, December 2nd. Wells Fargo & Company increased their price target on shares of Royal Caribbean Cruises from $232.00 to $272.00 and gave the stock an "overweight" rating in a report on Monday, January 27th. Macquarie upped their price objective on shares of Royal Caribbean Cruises from $250.00 to $300.00 and gave the stock an "outperform" rating in a research report on Thursday, January 30th. Finally, Morgan Stanley upped their price objective on shares of Royal Caribbean Cruises from $210.00 to $225.00 and gave the stock an "equal weight" rating in a research report on Monday, February 3rd. Three analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company's stock. Based on data from MarketBeat, Royal Caribbean Cruises presently has a consensus rating of "Moderate Buy" and an average target price of $283.53.

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Royal Caribbean Cruises Price Performance

The company has a quick ratio of 0.15, a current ratio of 0.17 and a debt-to-equity ratio of 2.39. The business's 50-day simple moving average is $240.00 and its 200 day simple moving average is $221.60. The firm has a market capitalization of $58.07 billion, a P/E ratio of 20.18, a PEG ratio of 0.90 and a beta of 2.53.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last issued its earnings results on Tuesday, January 28th. The company reported $1.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.50 by $0.13. Royal Caribbean Cruises had a net margin of 17.46% and a return on equity of 48.97%. During the same period in the previous year, the business earned $1.25 EPS. Sell-side analysts forecast that Royal Caribbean Cruises Ltd. will post 14.9 earnings per share for the current year.

Royal Caribbean Cruises Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, April 4th. Stockholders of record on Friday, March 7th will be issued a $0.75 dividend. This is a boost from Royal Caribbean Cruises's previous quarterly dividend of $0.55. The ex-dividend date of this dividend is Friday, March 7th. This represents a $3.00 annualized dividend and a dividend yield of 1.39%. Royal Caribbean Cruises's dividend payout ratio (DPR) is currently 28.06%.

Royal Caribbean Cruises declared that its Board of Directors has initiated a stock repurchase program on Wednesday, February 12th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to reacquire up to 1.5% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board believes its shares are undervalued.

Insider Transactions at Royal Caribbean Cruises

In related news, CEO Jason T. Liberty sold 58,000 shares of the firm's stock in a transaction on Tuesday, February 18th. The stock was sold at an average price of $261.95, for a total value of $15,193,100.00. Following the completion of the sale, the chief executive officer now owns 143,214 shares of the company's stock, valued at $37,514,907.30. This trade represents a 28.83 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Richard D. Fain sold 19,500 shares of the firm's stock in a transaction on Thursday, February 13th. The stock was sold at an average price of $256.68, for a total value of $5,005,260.00. Following the completion of the sale, the director now directly owns 185,021 shares of the company's stock, valued at $47,491,190.28. The trade was a 9.53 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 109,492 shares of company stock worth $28,571,705. Insiders own 7.95% of the company's stock.

Institutional Trading of Royal Caribbean Cruises

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Venturi Wealth Management LLC lifted its stake in Royal Caribbean Cruises by 511.0% in the fourth quarter. Venturi Wealth Management LLC now owns 2,157 shares of the company's stock worth $498,000 after acquiring an additional 1,804 shares during the period. Park Avenue Securities LLC lifted its position in Royal Caribbean Cruises by 20.1% during the fourth quarter. Park Avenue Securities LLC now owns 6,630 shares of the company's stock valued at $1,530,000 after buying an additional 1,111 shares during the period. Sanctuary Advisors LLC lifted its position in Royal Caribbean Cruises by 76.1% during the third quarter. Sanctuary Advisors LLC now owns 28,991 shares of the company's stock valued at $5,142,000 after buying an additional 12,530 shares during the period. Lorne Steinberg Wealth Management Inc. purchased a new position in Royal Caribbean Cruises during the fourth quarter valued at $231,000. Finally, Principal Financial Group Inc. lifted its position in Royal Caribbean Cruises by 2.7% during the fourth quarter. Principal Financial Group Inc. now owns 291,027 shares of the company's stock valued at $67,137,000 after buying an additional 7,740 shares during the period. Hedge funds and other institutional investors own 87.53% of the company's stock.

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.