Carnival (NYSE:CCL) Rating Increased to Hold at BMO Capital Markets

Key Points

• BMO Capital Markets upgraded Carnival to a “hold” rating, adding to a mixed but generally constructive analyst view of the stock. MarketBeat says the consensus rating remains Moderate Buy with a target price of $34.99.
• Carnival’s stock was down 3.8% to $25.66, well below its 12-month high of $34.03. The shares trade at about 11.56x earnings, and the company carries a relatively high debt-to-equity ratio of 1.80.
• The company recently beat quarterly EPS expectations, reporting $0.41 per share versus $0.34 expected, while revenue came in at $6.66 billion, slightly under estimates. Carnival also reiterated guidance, and recent news highlighted strong bookings and pricing, even as analysts trimmed some near-term estimates and fuel costs remain a risk.

Carnival (NYSE:CCL - Get Free Report) was upgraded by analysts at BMO Capital Markets to a "hold" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Other analysts also recently issued research reports about the stock. Wall Street Zen downgraded shares of Carnival from a "buy" rating to a "hold" rating in a research report on Saturday, March 28th. Morgan Stanley upgraded shares of Carnival from an "equal weight" rating to an "overweight" rating and decreased their price objective for the stock from $33.00 to $31.00 in a research report on Thursday, March 19th. Truist Financial dropped their target price on shares of Carnival from $30.00 to $29.00 and set a "hold" rating on the stock in a report on Friday, May 22nd. Argus set a $35.00 price target on shares of Carnival in a research report on Friday, June 26th. Finally, HSBC upgraded Carnival from a "hold" rating to a "buy" rating and decreased their price target for the stock from $33.60 to $30.10 in a report on Monday, March 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $34.99.

Carnival Stock Down 3.8%

Shares of NYSE:CCL opened at $25.66 on Tuesday. The firm has a market cap of $35.14 billion, a P/E ratio of 11.56, a P/E/G ratio of 1.18 and a beta of 2.32. Carnival has a 12-month low of $23.45 and a 12-month high of $34.03. The business has a fifty day simple moving average of $27.40 and a 200 day simple moving average of $28.44. The company has a quick ratio of 0.29, a current ratio of 0.33 and a debt-to-equity ratio of 1.80.

Carnival (NYSE:CCL - Get Free Report) last issued its quarterly earnings results on Tuesday, June 23rd. The company reported $0.41 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.07. Carnival had a return on equity of 26.11% and a net margin of 11.24%.The company had revenue of $6.66 billion during the quarter, compared to analysts' expectations of $6.69 billion. During the same quarter in the prior year, the firm posted $0.35 earnings per share. The business's quarterly revenue was up 5.3% on a year-over-year basis. Carnival has set its FY 2026 guidance at 2.220-2.220 EPS and its Q3 2026 guidance at 1.350-1.350 EPS. Analysts predict that Carnival will post 2.22 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Bettina Alejandra Deynes sold 43,058 shares of the company's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $28.10, for a total transaction of $1,209,929.80. Following the transaction, the insider directly owned 69,238 shares of the company's stock, valued at approximately $1,945,587.80. This represents a 38.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 7.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Carnival

A number of large investors have recently modified their holdings of the company. CVA Family Office LLC lifted its stake in shares of Carnival by 15.6% in the fourth quarter. CVA Family Office LLC now owns 2,597 shares of the company's stock valued at $79,000 after buying an additional 350 shares in the last quarter. Net Worth Advisory Group lifted its position in Carnival by 2.9% in the 4th quarter. Net Worth Advisory Group now owns 12,383 shares of the company's stock valued at $378,000 after acquiring an additional 354 shares in the last quarter. Triad Wealth Partners LLC boosted its stake in Carnival by 2.1% during the 4th quarter. Triad Wealth Partners LLC now owns 17,464 shares of the company's stock valued at $533,000 after purchasing an additional 358 shares during the last quarter. Commerzbank Aktiengesellschaft FI increased its holdings in Carnival by 3.5% during the 4th quarter. Commerzbank Aktiengesellschaft FI now owns 10,540 shares of the company's stock worth $322,000 after purchasing an additional 358 shares in the last quarter. Finally, StoneX Group Inc. raised its stake in shares of Carnival by 4.9% in the fourth quarter. StoneX Group Inc. now owns 7,935 shares of the company's stock worth $242,000 after purchasing an additional 368 shares during the last quarter. 67.19% of the stock is currently owned by institutional investors.

Key Carnival News

Here are the key news stories impacting Carnival this week:

• Positive Sentiment: Carnival’s FY2026 earnings estimate was nudged slightly higher, and its FY2028 estimate was also raised marginally, showing analysts still see earnings growth over time.
• Positive Sentiment: Recent commentary highlighted that FY27 bookings remain at historical highs, with strong pricing and occupancy suggesting demand is still healthy.
• Positive Sentiment: Carnival completed the Celebration Key pier extension early, doubling capacity at its private destination and potentially supporting more guest traffic and future revenue.
• Neutral Sentiment: A recent article argued that Carnival stock may look discounted on earnings, but noted that the recovery story is partly priced in and risks remain mixed.
• Negative Sentiment: Analysts cut estimates for Q3 2026, Q4 2026, Q2 2027, and Q1 2028, reinforcing concerns that near-term profitability may be less robust than previously expected.
• Negative Sentiment: Rising oil prices tied to renewed Middle East tensions are pressuring cruise stocks, since fuel is a major operating cost for Carnival and can squeeze margins.
• Negative Sentiment: Carnival was also removed from several Russell growth indices, which may have added technical selling pressure.

Carnival Company Profile

Carnival Corporation NYSE: CCL is a global cruise operator that provides leisure travel services through a portfolio of passenger cruise brands. The company's core business is operating cruise ships that offer multi-night voyages and associated vacation services, including onboard accommodations, dining, entertainment, spa and wellness offerings, casinos, youth programs, and organized shore excursions. Carnival markets cruise vacations to a broad range of consumers, from value-focused travelers to premium and luxury segments, through differentiated brand positioning and onboard experiences.

Its operating structure comprises multiple well-known cruise brands that target distinct geographic and demographic markets.

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