Royal Caribbean Cruises (NYSE:RCL) Stock Bumped Up to "Buy" by Bank of America

Key Points

• Bank of America upgraded Royal Caribbean Group to “Buy” from “Neutral” and set a $330 price target, implying approximately 35.5% upside from the prior close.
• Analyst sentiment is broadly positive: the stock carries a “Moderate Buy” consensus rating and an average price target of $357.80, supported by multiple recent target increases and upgrades.
• Royal Caribbean exceeded quarterly expectations, reporting $4.21 in earnings per share versus a $3.98 consensus estimate and $4.83 billion in revenue; however, CEO Michael Bayley recently sold shares worth about $4.05 million.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) was upgraded by stock analysts at Bank of America from a "neutral" rating to a "buy" rating in a note issued to investors on Monday, MarketBeat reports. The brokerage presently has a $330.00 target price on the stock. Bank of America's price objective would indicate a potential upside of 35.49% from the company's previous close.

Several other brokerages also recently commented on RCL. Citigroup boosted their target price on Royal Caribbean Cruises from $327.00 to $362.00 and gave the stock a "buy" rating in a report on Wednesday, July 29th. TD Cowen upgraded Royal Caribbean Cruises to a "strong-buy" rating in a research report on Tuesday, September 8th. Morgan Stanley boosted their price objective on Royal Caribbean Cruises from $280.00 to $300.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. Stifel Nicolaus boosted their price objective on Royal Caribbean Cruises from $410.00 to $415.00 and gave the stock a "buy" rating in a research note on Wednesday, July 29th. Finally, Weiss Ratings cut Royal Caribbean Cruises from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $357.80.

Royal Caribbean Cruises Trading Up 0.4%

Shares of Royal Caribbean Cruises stock opened at $243.57 on Monday. Royal Caribbean Cruises has a 12-month low of $222.22 and a 12-month high of $356.39. The stock has a market capitalization of $65.14 billion, a P/E ratio of 15.05, a price-to-earnings-growth ratio of 0.80 and a beta of 1.74. The company has a 50-day simple moving average of $284.09 and a 200 day simple moving average of $281.79. The company has a quick ratio of 0.19, a current ratio of 0.21 and a debt-to-equity ratio of 2.03.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The company reported $4.21 EPS for the quarter, beating analysts' consensus estimates of $3.98 by $0.23. The firm had revenue of $4.83 billion for the quarter, compared to analyst estimates of $4.82 billion. Royal Caribbean Cruises had a net margin of 23.54% and a return on equity of 43.33%. The company's revenue for the quarter was up 6.5% compared to the same quarter last year. During the same period in the previous year, the business earned $4.38 earnings per share. Royal Caribbean Cruises has set its FY 2026 guidance at 17.730-17.870 EPS and its Q3 2026 guidance at 6.260-6.360 EPS. Research analysts expect that Royal Caribbean Cruises will post 17.78 earnings per share for the current fiscal year.

Insider Buying and Selling at Royal Caribbean Cruises

In related news, CEO Michael Bayley sold 12,811 shares of the business's stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $315.99, for a total transaction of $4,048,147.89. Following the completion of the sale, the chief executive officer directly owned 45,297 shares of the company's stock, valued at $14,313,399.03. The trade was a 22.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 6.44% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Royal Caribbean Cruises

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Waterloo Capital L.P. grew its holdings in Royal Caribbean Cruises by 2.9% during the fourth quarter. Waterloo Capital L.P. now owns 1,191 shares of the company's stock valued at $332,000 after purchasing an additional 34 shares during the period. REAP Financial Group LLC raised its position in Royal Caribbean Cruises by 16.8% in the 4th quarter. REAP Financial Group LLC now owns 243 shares of the company's stock valued at $68,000 after buying an additional 35 shares during the last quarter. Global Financial Private Client LLC lifted its position in shares of Royal Caribbean Cruises by 1.6% in the first quarter. Global Financial Private Client LLC now owns 2,343 shares of the company's stock worth $645,000 after purchasing an additional 38 shares in the last quarter. D.A. Davidson & CO. boosted its holdings in Royal Caribbean Cruises by 1.5% during the second quarter. D.A. Davidson & CO. now owns 2,647 shares of the company's stock worth $841,000 after purchasing an additional 40 shares during the last quarter. Finally, EWA LLC boosted its stake in shares of Royal Caribbean Cruises by 4.6% during the 1st quarter. EWA LLC now owns 961 shares of the company's stock worth $265,000 after buying an additional 42 shares during the last quarter. 87.53% of the stock is owned by institutional investors.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd., now operating as Royal Caribbean Group, is a global cruise vacation company headquartered in Miami, Florida. The company provides cruise vacations and related travel experiences through a fleet of ocean-going ships serving destinations across the Caribbean, Europe, Alaska, Asia, Australia and New Zealand, and other regions.

Royal Caribbean Group's principal brands include Royal Caribbean International, Celebrity Cruises and Silversea. Royal Caribbean International focuses on large-ship vacations featuring entertainment, dining, family activities and onboard attractions; Celebrity Cruises offers premium cruises; and Silversea specializes in luxury and expedition voyages.

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