Carnival (NYSE:CCL) Shares Up 9.9% - Here's Why

Key Points

• Carnival shares jumped 9.9% on Wednesday, with trading volume well above average, after the stock climbed as high as $26.34 during the session.
• The main catalyst appears to be a sharp drop in global oil prices, which could lower Carnival’s fuel costs and improve near-term margins; broader strength in cruise stocks also helped.
• Despite the rally, sentiment is still mixed: analysts currently rate the stock Moderate Buy overall, with an average price target of $34.18, while the company continues to face volatility tied to macro and fuel-cost concerns.

Shares of Carnival Corporation (NYSE:CCL - Get Free Report) rose 9.9% on Wednesday . The stock traded as high as $26.34 and last traded at $26.2510. Approximately 37,145,261 shares changed hands during mid-day trading, an increase of 44% from the average daily volume of 25,801,492 shares. The stock had previously closed at $23.89.

Carnival News Summary

Here are the key news stories impacting Carnival this week:

• Positive Sentiment: Shares are getting a boost from a sharp drop in global oil prices, which could ease one of Carnival’s biggest operating costs and improve near-term margins. Why Carnival Stock Is Cruising Higher On Wednesday?
• Positive Sentiment: Broader cruise-sector strength is also helping, with Carnival outperforming alongside Norwegian Cruise Line as investors rotate back into leisure names. Carnival Jumps 9%, Norwegian Cruise Line Soars 11%: Why Royal Caribbean Isn’t Joining the Cruise Party
• Positive Sentiment: Parent-company brands are still expanding their long-term booking pipeline, including Holland America Line’s newly opened 2028 Grand Voyages and Seabourn’s Alaska-season culinary program, which support the premium-demand story for Carnival’s portfolio. Holland America Line Opens Bookings for 2028 Grand Voyages
• Neutral Sentiment: There is also some evidence of mixed investor positioning, with recent institutional selling alongside some large additions from major funds, suggesting sentiment is improving but not uniformly bullish.
• Negative Sentiment: One recent report noted Carnival and other travel names were under pressure earlier in the week amid risk-off trading and fuel-cost sensitivity, reminding investors that the stock can still swing sharply with macro headlines. Carnival (CCL) slides 3.7% as risk-off trading and fuel-cost sensitivity weigh on cruise stocks

Wall Street Analyst Weigh In

A number of research firms have recently commented on CCL. Wall Street Zen cut Carnival from a "buy" rating to a "hold" rating in a research note on Saturday, March 28th. TD Cowen raised their price objective on shares of Carnival from $33.00 to $34.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Zacks Research raised shares of Carnival from a "strong sell" rating to a "hold" rating in a research report on Friday, May 15th. Stifel Nicolaus dropped their target price on shares of Carnival from $40.00 to $35.00 and set a "buy" rating on the stock in a research note on Wednesday, March 11th. Finally, Wells Fargo & Company reduced their target price on shares of Carnival from $37.00 to $36.00 and set an "overweight" rating for the company in a research report on Wednesday, April 15th. Nineteen research analysts have rated the stock with a Buy rating and six have assigned 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 $34.18.

Carnival Price Performance

The firm has a 50 day moving average price of $26.06 and a two-hundred day moving average price of $28.06. The company has a market cap of $32.31 billion, a P/E ratio of 11.58, a P/E/G ratio of 1.11 and a beta of 2.33. The company has a debt-to-equity ratio of 1.82, a quick ratio of 0.26 and a current ratio of 0.30.

Carnival (NYSE:CCL - Get Free Report) last announced its quarterly earnings data on Friday, March 27th. The company reported $0.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.18 by $0.02. The business had revenue of $6.17 billion for the quarter, compared to analysts' expectations of $6.13 billion. Carnival had a return on equity of 26.92% and a net margin of 11.48%.The firm's quarterly revenue was up 6.1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.13 EPS. On average, analysts predict that Carnival Corporation will post 2.21 EPS for the current fiscal year.

Carnival Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Monday, May 18th will be issued a $0.15 dividend. The ex-dividend date of this dividend is Monday, May 18th. This represents a $0.60 annualized dividend and a yield of 2.3%. Carnival's dividend payout ratio (DPR) is 26.67%.

Insiders Place Their Bets

In other Carnival news, Director Sir Jonathon Band sold 11,988 shares of the business's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $26.19, for a total transaction of $313,965.72. Following the sale, the director owned 52,601 shares of the company's stock, valued at $1,377,620.19. The trade was a 18.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. In the last ninety days, insiders have sold 12,000 shares of company stock valued at $314,265. 7.90% of the stock is currently owned by insiders.

Institutional Trading of Carnival

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Empirical Financial Services LLC d.b.a. Empirical Wealth Management purchased a new position in shares of Carnival during the 3rd quarter valued at $1,291,000. National Pension Service raised its position in shares of Carnival by 10.8% in the third quarter. National Pension Service now owns 2,795,560 shares of the company's stock worth $80,820,000 after buying an additional 272,452 shares in the last quarter. Vanguard Group Inc. raised its position in shares of Carnival by 0.3% in the fourth quarter. Vanguard Group Inc. now owns 128,133,282 shares of the company's stock worth $3,913,190,000 after buying an additional 368,445 shares in the last quarter. Russell Investments Group Ltd. boosted its stake in Carnival by 5.6% during the third quarter. Russell Investments Group Ltd. now owns 1,774,765 shares of the company's stock valued at $51,867,000 after buying an additional 93,565 shares during the period. Finally, Nordea Investment Management AB boosted its stake in Carnival by 42.8% during the fourth quarter. Nordea Investment Management AB now owns 2,126,893 shares of the company's stock valued at $65,487,000 after buying an additional 637,605 shares during the period. 67.19% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.