Royal Caribbean Cruises Ltd. (RCL) Receives Consensus Recommendation of “Buy” from Analysts
Shares of Royal Caribbean Cruises Ltd. (NYSE:RCL) have received an average recommendation of “Buy” from the twenty brokerages that are covering the firm, Marketbeat.com reports. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and fifteen have given a buy rating to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $101.16.
Several research firms have recently issued reports on RCL. Zacks Investment Research lowered Royal Caribbean Cruises from a “buy” rating to a “hold” rating in a research report on Wednesday, March 29th. Deutsche Bank AG decreased their target price on Royal Caribbean Cruises from $102.00 to $91.00 and set a “hold” rating for the company in a research report on Tuesday, May 2nd. ValuEngine upgraded Royal Caribbean Cruises from a “hold” rating to a “buy” rating in a research report on Friday, June 2nd. Wells Fargo & Company restated an “outperform” rating and set a $119.50 target price (up from $117.50) on shares of Royal Caribbean Cruises in a research report on Tuesday, May 2nd. Finally, Wedbush boosted their target price on Royal Caribbean Cruises from $106.00 to $117.00 and gave the stock an “outperform” rating in a research report on Tuesday, April 25th.
Shares of Royal Caribbean Cruises (NYSE RCL) traded up 0.32% on Tuesday, hitting $111.85. 872,073 shares of the company’s stock traded hands. The firm’s 50-day moving average price is $110.11 and its 200 day moving average price is $98.24. Royal Caribbean Cruises has a 1-year low of $65.10 and a 1-year high of $115.63. The company has a market cap of $24.06 billion, a price-to-earnings ratio of 17.29 and a beta of 1.06.
Royal Caribbean Cruises (NYSE:RCL) last posted its earnings results on Friday, April 28th. The company reported $0.99 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.92 by $0.07. The company had revenue of $2.01 billion during the quarter, compared to analyst estimates of $2.02 billion. Royal Caribbean Cruises had a return on equity of 15.91% and a net margin of 16.29%. The company’s revenue for the quarter was up 4.7% compared to the same quarter last year. During the same period in the previous year, the company earned $0.57 EPS. On average, equities research analysts expect that Royal Caribbean Cruises will post $7.23 earnings per share for the current year.
Royal Caribbean Cruises announced that its Board of Directors has initiated a share repurchase program on Friday, April 28th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 2.2% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its stock is undervalued.
The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 5th. Stockholders of record on Friday, June 2nd were paid a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 1.72%. The ex-dividend date was Wednesday, May 31st. Royal Caribbean Cruises’s dividend payout ratio is currently 29.68%.
In other news, EVP Harri U. Kulovaara sold 7,527 shares of the company’s stock in a transaction that occurred on Monday, May 1st. The stock was sold at an average price of $110.00, for a total transaction of $827,970.00. Following the sale, the executive vice president now owns 29,667 shares in the company, valued at approximately $3,263,370. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Richard D. Fain sold 20,000 shares of the company’s stock in a transaction that occurred on Thursday, July 13th. The stock was sold at an average price of $109.62, for a total value of $2,192,400.00. Following the sale, the chief executive officer now owns 967,741 shares in the company, valued at approximately $106,083,768.42. The disclosure for this sale can be found here. In the last quarter, insiders have sold 47,527 shares of company stock worth $5,175,770. Company insiders own 15.30% of the company’s stock.
A number of large investors have recently bought and sold shares of RCL. BlackRock Inc. boosted its stake in Royal Caribbean Cruises by 3,290.6% in the first quarter. BlackRock Inc. now owns 10,359,358 shares of the company’s stock worth $1,016,356,000 after buying an additional 10,053,823 shares during the period. Vanguard Group Inc. boosted its stake in Royal Caribbean Cruises by 3.5% in the first quarter. Vanguard Group Inc. now owns 16,504,950 shares of the company’s stock worth $1,619,301,000 after buying an additional 555,260 shares during the period. Wells Fargo & Company MN boosted its stake in Royal Caribbean Cruises by 50.6% in the first quarter. Wells Fargo & Company MN now owns 1,454,631 shares of the company’s stock worth $142,714,000 after buying an additional 488,740 shares during the period. Massachusetts Financial Services Co. MA boosted its stake in Royal Caribbean Cruises by 115.2% in the first quarter. Massachusetts Financial Services Co. MA now owns 845,673 shares of the company’s stock worth $82,969,000 after buying an additional 452,620 shares during the period. Finally, Cornerstone Capital Management Holdings LLC. boosted its stake in Royal Caribbean Cruises by 474.4% in the first quarter. Cornerstone Capital Management Holdings LLC. now owns 382,883 shares of the company’s stock worth $37,563,000 after buying an additional 316,224 shares during the period. Institutional investors and hedge funds own 71.14% of the company’s stock.
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About Royal Caribbean Cruises
Royal Caribbean Cruises Ltd. is a cruise company. The Company owns and operates three global cruise brands: Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises (Global Brands). The Company also own joint venture interest in the German brand TUI Cruises, interest in the Spanish brand Pullmantur and interest in the Chinese brand SkySea Cruises (collectively, Partner Brands).
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