Royal Caribbean Cruises (NYSE:RCL) Shares Gap Up on Earnings Beat

Shares of Royal Caribbean Cruises Ltd. (NYSE:RCL) gapped up prior to trading on Tuesday following a stronger than expected earnings report. 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 trading hands.

The company reported $1.63 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.50 by $0.13. Royal Caribbean Cruises had a return on equity of 52.92% and a net margin of 16.21%. During the same period last year, the business earned $1.25 EPS.

Royal Caribbean Cruises Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, January 13th. Investors of record on Friday, December 27th were paid a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 0.82%. The ex-dividend date of this dividend was Friday, December 27th. Royal Caribbean Cruises’s payout ratio is 22.61%.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. The Goldman Sachs Group dropped their price objective on shares of Royal Caribbean Cruises from $275.00 to $270.00 and set a “buy” rating for the company in a report on Friday, January 24th. Macquarie raised their target price on shares of Royal Caribbean Cruises from $189.00 to $250.00 and gave the company an “outperform” rating in a report on Wednesday, October 30th. Tigress Financial boosted their price target on shares of Royal Caribbean Cruises from $210.00 to $270.00 and gave the stock a “buy” rating in a report on Thursday, November 7th. Wells Fargo & Company raised their price objective on shares of Royal Caribbean Cruises from $232.00 to $272.00 and gave the company an “overweight” rating in a report on Monday. Finally, Citigroup boosted their target price on shares of Royal Caribbean Cruises from $283.00 to $304.00 and gave the stock a “buy” rating in a research note on Wednesday. Three research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. According to MarketBeat.com, Royal Caribbean Cruises currently has an average rating of “Moderate Buy” and an average target price of $271.06.

Insider Buying and Selling

In related news, EVP Harri U. Kulovaara sold 3,256 shares of Royal Caribbean Cruises stock in a transaction that occurred on Wednesday, November 20th. The stock was sold at an average price of $234.62, for a total value of $763,922.72. Following the sale, the executive vice president now directly owns 22,348 shares in the company, valued at $5,243,287.76. The trade was 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 through this link. Also, Director Arne Alexander Wilhelmsen sold 230,000 shares of the company’s stock in a transaction on Tuesday, November 19th. The stock was sold at an average price of $233.62, for a total transaction of $53,732,600.00. Following the transaction, the director now directly owns 18,556,860 shares in the company, valued at approximately $4,335,253,633.20. This trade represents a 1.22 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 372,609 shares of company stock worth $87,647,208 in the last 90 days. Company insiders own 7.95% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in RCL. Plato Investment Management Ltd purchased a new stake in shares of Royal Caribbean Cruises in the 3rd quarter worth about $26,000. Safe Harbor Fiduciary LLC acquired a new position in shares of Royal Caribbean Cruises during the 3rd quarter valued at about $27,000. DiNuzzo Private Wealth Inc. increased its position in Royal Caribbean Cruises by 257.4% during the third quarter. DiNuzzo Private Wealth Inc. now owns 168 shares of the company’s stock worth $30,000 after purchasing an additional 121 shares during the last quarter. LRI Investments LLC purchased a new stake in shares of Royal Caribbean Cruises during the 3rd quarter valued at $31,000. Finally, Bay Harbor Wealth Management LLC acquired a new stake in shares of Royal Caribbean Cruises during the 4th quarter worth $36,000. 87.53% of the stock is owned by hedge funds and other institutional investors.

Royal Caribbean Cruises Price Performance

The company has a 50 day simple moving average of $238.47 and a 200 day simple moving average of $200.21. The company has a market capitalization of $72.27 billion, a price-to-earnings ratio of 27.62, a price-to-earnings-growth ratio of 0.50 and a beta of 2.59. The company has a quick ratio of 0.16, a current ratio of 0.19 and a debt-to-equity ratio of 2.63.

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.