Royal Caribbean Cruises Ltd. (RCL) Upgraded to “Buy” by Zacks Investment Research
Royal Caribbean Cruises Ltd. (NYSE:RCL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Friday. The brokerage presently has a $134.00 price objective on the stock. Zacks Investment Research‘s price target suggests a potential upside of 11.96% from the stock’s current price.
According to Zacks, “Royal Caribbean posted solid second-quarter 2017 results with both earnings and revenues surpassing the Zacks Consensus Estimate. In fact, given better-than-expected results in the quarter along with favorable booking trends, the company raised its full-year 2017 earnings view. Going forward, the company’s sailings in the U.S., Europe, Alaska, Baltic and Asia, are likely to continue performing strongly. The company thus remains positioned to witness another record year and achieve its targets under the Double-Double program. While, its capacity growth should aid in meeting increased demand, ship innovation and technology investments should lead to higher yields. Also, the company’s shares outpaced the industry year to date. However, higher costs might hurt the company’s profitability in the near term. Further, lingering global uncertainties in key operating regions, along with negative currency translation remain concerns”
RCL has been the topic of several other research reports. Nomura upped their target price on shares of Royal Caribbean Cruises from $131.00 to $135.00 and gave the stock a “buy” rating in a report on Wednesday. Goldman Sachs Group, Inc. (The) raised shares of Royal Caribbean Cruises from a “sell” rating to a “neutral” rating and increased their price objective for the stock from $99.00 to $115.00 in a report on Wednesday. Deutsche Bank AG decreased their price objective on shares of Royal Caribbean Cruises from $102.00 to $91.00 and set a “hold” rating on the stock in a report on Tuesday, May 2nd. UBS AG reissued a “buy” rating and set a $131.00 price objective (up previously from $112.00) on shares of Royal Caribbean Cruises in a report on Wednesday. Finally, BidaskClub lowered shares of Royal Caribbean Cruises from a “strong-buy” rating to a “buy” rating in a report on Monday, July 31st. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and nineteen have assigned a buy rating to the company’s stock. Royal Caribbean Cruises presently has a consensus rating of “Buy” and an average target price of $117.23.
Royal Caribbean Cruises (NYSE RCL) traded down 0.19% on Friday, hitting $119.69. 1,529,210 shares of the stock traded hands. The firm has a market cap of $25.75 billion, a price-to-earnings ratio of 18.53 and a beta of 1.06. Royal Caribbean Cruises has a 12-month low of $65.10 and a 12-month high of $120.96. The stock has a 50-day moving average of $111.74 and a 200-day moving average of $102.72.
Royal Caribbean Cruises (NYSE:RCL) last announced its quarterly earnings data on Tuesday, August 1st. The company reported $1.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.67 by $0.04. Royal Caribbean Cruises had a net margin of 17.73% and a return on equity of 16.71%. The company had revenue of $2.20 billion during the quarter, compared to analysts’ expectations of $2.19 billion. During the same quarter in the prior year, the company posted $1.09 EPS. The business’s revenue was up 4.3% on a year-over-year basis. Analysts forecast that Royal Caribbean Cruises will post $7.43 earnings per share for the current year.
Royal Caribbean Cruises announced that its board has initiated a share buyback plan on Friday, April 28th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 2.2% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s leadership believes its shares are undervalued.
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In other news, CEO Richard D. Fain sold 20,000 shares of Royal Caribbean Cruises stock in a transaction that occurred on Thursday, July 13th. The shares were 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 directly owns 967,741 shares in the company, valued at $106,083,768.42. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Richard D. Fain sold 210,706 shares of Royal Caribbean Cruises stock in a transaction that occurred on Wednesday, August 2nd. The shares were sold at an average price of $115.83, for a total transaction of $24,406,075.98. Following the completion of the sale, the chief executive officer now owns 967,741 shares in the company, valued at $112,093,440.03. The disclosure for this sale can be found here. Insiders sold 452,499 shares of company stock worth $52,583,811 over the last quarter. 15.30% of the stock is owned by corporate insiders.
Hedge funds have recently bought and sold shares of the stock. Advisors Preferred LLC acquired a new stake in Royal Caribbean Cruises during the first quarter worth about $103,000. NEXT Financial Group Inc increased its stake in Royal Caribbean Cruises by 25.0% in the first quarter. NEXT Financial Group Inc now owns 1,000 shares of the company’s stock worth $107,000 after buying an additional 200 shares during the period. Oppenheimer Asset Management Inc. acquired a new stake in Royal Caribbean Cruises during the first quarter worth about $119,000. Whittier Trust Co. increased its stake in Royal Caribbean Cruises by 24.4% in the first quarter. Whittier Trust Co. now owns 1,266 shares of the company’s stock worth $124,000 after buying an additional 248 shares during the period. Finally, Acadian Asset Management LLC increased its stake in Royal Caribbean Cruises by 447.1% in the first quarter. Acadian Asset Management LLC now owns 1,778 shares of the company’s stock worth $174,000 after buying an additional 1,453 shares during the period. Institutional investors own 71.23% of the company’s stock.
Royal Caribbean Cruises Company Profile
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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