Royal Caribbean Cruises (NYSE:RCL) Shares Gap Up on Better-Than-Expected Earnings

Royal Caribbean Cruises Ltd. (NYSE:RCL)’s share price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $236.82, but opened at $246.75. Royal Caribbean Cruises shares last traded at $259.06, with a volume of 1,440,398 shares.

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 return on equity of 52.92% and a net margin of 16.21%.

Royal Caribbean Cruises Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, January 13th. Shareholders of record on Friday, December 27th were paid a $0.55 dividend. The ex-dividend date of this dividend was Friday, December 27th. This represents a $2.20 annualized dividend and a yield of 0.85%. Royal Caribbean Cruises’s payout ratio is currently 22.61%.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on RCL shares. Bank of America raised their price objective on Royal Caribbean Cruises from $210.00 to $240.00 and gave the stock a “neutral” rating in a report on Wednesday, November 13th. The Goldman Sachs Group cut their price objective on shares of Royal Caribbean Cruises from $275.00 to $270.00 and set a “buy” rating on the stock in a report on Friday. Stifel Nicolaus lifted their target price on Royal Caribbean Cruises from $250.00 to $310.00 and gave the stock a “buy” rating in a research report on Friday, December 6th. Mizuho restated an “outperform” rating and set a $253.00 price objective (down previously from $255.00) on shares of Royal Caribbean Cruises in a research note on Thursday, January 23rd. Finally, Macquarie lifted their price target on shares of Royal Caribbean Cruises from $189.00 to $250.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 30th. Three equities research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $252.31.

Insider Buying and Selling

In other Royal Caribbean Cruises news, EVP Harri U. Kulovaara sold 3,256 shares of the firm’s stock in a transaction dated Wednesday, November 20th. The stock was sold at an average price of $234.62, for a total transaction of $763,922.72. Following the transaction, the executive vice president now directly owns 22,348 shares in the company, valued at $5,243,287.76. This trade represents a 12.72 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Richard D. Fain sold 25,000 shares of the business’s stock in a transaction dated Wednesday, October 30th. The stock was sold at an average price of $210.02, for a total value of $5,250,500.00. Following the completion of the sale, the director now directly owns 204,521 shares of the company’s stock, valued at $42,953,500.42. This represents a 10.89 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 404,332 shares of company stock valued at $94,299,521. 7.95% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Royal Caribbean Cruises

Large investors have recently made changes to their positions in the business. Fifth Third Wealth Advisors LLC lifted its stake in Royal Caribbean Cruises by 2.2% in the 4th quarter. Fifth Third Wealth Advisors LLC now owns 2,360 shares of the company’s stock valued at $544,000 after purchasing an additional 50 shares during the last quarter. Bartlett & CO. Wealth Management LLC boosted its holdings in Royal Caribbean Cruises by 12.3% in the 4th quarter. Bartlett & CO. Wealth Management LLC now owns 457 shares of the company’s stock valued at $106,000 after purchasing an additional 50 shares during the period. FSM Wealth Advisors LLC increased its holdings in shares of Royal Caribbean Cruises by 3.2% during the third quarter. FSM Wealth Advisors LLC now owns 1,636 shares of the company’s stock worth $290,000 after purchasing an additional 51 shares during the period. Brooklyn Investment Group raised its position in shares of Royal Caribbean Cruises by 2.5% in the fourth quarter. Brooklyn Investment Group now owns 2,117 shares of the company’s stock valued at $488,000 after buying an additional 52 shares in the last quarter. Finally, Grove Bank & Trust boosted its stake in shares of Royal Caribbean Cruises by 10.5% in the fourth quarter. Grove Bank & Trust now owns 613 shares of the company’s stock valued at $141,000 after buying an additional 58 shares during the period. Institutional investors and hedge funds own 87.53% of the company’s stock.

Royal Caribbean Cruises Stock Up 9.0 %

The stock has a 50-day moving average of $237.76 and a 200-day moving average of $199.00. The firm has a market cap of $69.42 billion, a price-to-earnings ratio of 26.49, a P/E/G ratio of 0.50 and a beta of 2.59. The company has a debt-to-equity ratio of 2.63, a current ratio of 0.19 and a quick ratio of 0.16.

About Royal Caribbean Cruises

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.