Royal Caribbean Cruises Ltd. (RCL) Cut to “Sell” at Zacks Investment Research
Royal Caribbean Cruises Ltd. (NYSE:RCL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Monday.
According to Zacks, “Royal Caribbean generates nearly 50% of its revenues from customers outside the U.S. where a majority pay with local currency. Hence, any unfavorable change in currency would hurt its earnings. In fact, in view of the negative impact from currency, the company slashed its full-year 2016 earnings guidance as well. Moreover, higher marketing and promotional spend, along with increased cruise costs, might hurt margins in the near term. Nonetheless, Royal Caribbean is expected to deliver solid results going forward, backed by strong booking trends, technological innovation, capacity growth and various profit-generating initiatives. Also, the company has positive record of earnings surprises in recent quarters. However, despite the growth opportunities, lingering global uncertainties in China and Europe is likely to impact the company’s international profits. Estimates too have been going down ahead of Royal Caribbean’s Q3 earnings release.”
Several other equities research analysts have also weighed in on RCL. Macquarie began coverage on Royal Caribbean Cruises in a report on Tuesday, October 4th. They issued an “outperform” rating and a $88.00 price objective for the company. Argus lowered Royal Caribbean Cruises from a “buy” rating to a “hold” rating in a report on Wednesday, September 7th. Stifel Nicolaus restated a “buy” rating on shares of Royal Caribbean Cruises in a research note on Friday, September 9th. Deutsche Bank AG assumed coverage on Royal Caribbean Cruises in a research note on Thursday, September 29th. They issued a “hold” rating and a $81.00 target price for the company. Finally, Nomura restated a “buy” rating and issued a $83.00 target price on shares of Royal Caribbean Cruises in a research note on Wednesday, September 14th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and eighteen have assigned a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus price target of $93.12.
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Shares of Royal Caribbean Cruises (NYSE:RCL) traded down 1.53% on Monday, reaching $68.91. The company’s stock had a trading volume of 1,072,915 shares. The firm’s 50-day moving average price is $70.74 and its 200-day moving average price is $73.62. The stock has a market cap of $14.83 billion, a P/E ratio of 19.67 and a beta of 1.65. Royal Caribbean Cruises has a 12 month low of $64.21 and a 12 month high of $103.40.
Royal Caribbean Cruises (NYSE:RCL) last announced its quarterly earnings data on Tuesday, August 2nd. The company reported $1.09 earnings per share for the quarter, topping the consensus estimate of $1.02 by $0.07. Royal Caribbean Cruises had a return on equity of 14.76% and a net margin of 9.05%. The company earned $2.11 billion during the quarter, compared to analyst estimates of $2.17 billion. During the same quarter last year, the firm posted $0.84 EPS. The firm’s revenue for the quarter was up 2.3% on a year-over-year basis. On average, analysts forecast that Royal Caribbean Cruises will post $6.05 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, October 13th. Stockholders of record on Thursday, September 29th were paid a dividend of $0.48 per share. The ex-dividend date was Tuesday, September 27th. This is a boost from Royal Caribbean Cruises’s previous quarterly dividend of $0.38. This represents a $1.92 annualized dividend and a dividend yield of 2.74%. Royal Caribbean Cruises’s payout ratio is 55.01%.
In other news, CEO Lisa Lutoff-Perlo sold 6,790 shares of the business’s stock in a transaction that occurred on Friday, August 5th. The stock was sold at an average price of $74.46, for a total transaction of $505,583.40. Following the transaction, the chief executive officer now directly owns 34,450 shares of the company’s stock, valued at $2,565,147. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Michael W. Bayley sold 12,183 shares of the business’s stock in a transaction that occurred on Thursday, August 11th. The shares were sold at an average price of $71.07, for a total value of $865,845.81. Following the transaction, the chief executive officer now directly owns 82,943 shares in the company, valued at $5,894,759.01. The disclosure for this sale can be found here. Insiders own 16.80% of the company’s stock.
Several institutional investors have recently bought and sold shares of RCL. MU Investments Co. Ltd. acquired a new position in Royal Caribbean Cruises during the second quarter valued at about $109,000. IFP Advisors Inc boosted its position in Royal Caribbean Cruises by 33.3% in the first quarter. IFP Advisors Inc now owns 1,416 shares of the company’s stock valued at $116,000 after buying an additional 354 shares during the period. Pinkerton Retirement Specialists LLC acquired a new position in Royal Caribbean Cruises during the second quarter valued at about $142,000. Mizuho Asset Management Co. Ltd. boosted its position in Royal Caribbean Cruises by 86.3% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 2,321 shares of the company’s stock valued at $156,000 after buying an additional 1,075 shares during the period. Finally, Invictus RG purchased a new stake in Royal Caribbean Cruises during the first quarter valued at $164,000. 75.04% of the stock is currently owned by hedge funds and other institutional investors.
Royal Caribbean Cruises Company Profile
Royal Caribbean Cruises Ltd. is a cruise company. The Company owns various brands, such as Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisieres de France and joint venture interest in TUI Cruises. It operates approximately 23 ships with an aggregate capacity of approximately 68,600 berths under its Royal Caribbean International brand, offering cruise itineraries that range from 2 to 24 nights.
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