Carnival (NYSE:CCL) Trading 6.8% Higher on Analyst Upgrade

Key Points

• Carnival shares rose 6.8% after Truist Financial lifted its price target to $31 from $29, though the firm kept a hold rating. The stock traded as high as $26.81 in the session.
• Analyst sentiment remains generally constructive, with multiple firms maintaining or raising targets. MarketBeat data shows a Moderate Buy consensus and an average price target of $35.08.
• Carnival recently reported earnings of $0.41 per share, topping estimates, and it also announced a quarterly dividend of $0.15 per share to be paid on August 28.

Carnival Corporation (NYSE:CCL - Get Free Report)'s share price rose 6.8% during mid-day trading on Friday after Truist Financial raised their price target on the stock from $29.00 to $31.00. Truist Financial currently has a hold rating on the stock. Carnival traded as high as $26.81 and last traded at $26.9840. 7,224,766 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 24,926,238 shares. The stock had previously closed at $25.27.

A number of other equities analysts also recently weighed in on the company. Freedom Capital upgraded Carnival to a "strong-buy" rating in a report on Wednesday, June 3rd. Stifel Nicolaus raised their price target on shares of Carnival from $35.00 to $36.00 and gave the stock a "buy" rating in a report on Friday, June 12th. TD Cowen boosted their price objective on shares of Carnival from $33.00 to $34.00 and gave the company a "buy" rating in a research report on Friday, May 15th. BMO Capital Markets began coverage on shares of Carnival in a research report on Tuesday, July 7th. They set a "market perform" rating and a $30.00 price objective on the stock. Finally, UBS Group dropped their price objective on shares of Carnival from $38.00 to $35.00 and set a "buy" rating on the stock in a research note on Monday, April 13th. 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 stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $35.08.

Insiders Place Their Bets

In other Carnival news, insider Bettina Alejandra Deynes sold 43,058 shares of the company's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $28.10, for a total value of $1,209,929.80. Following the transaction, the insider directly owned 69,238 shares of the company's stock, valued at $1,945,587.80. This represents a 38.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 7.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Carnival

Hedge funds have recently added to or reduced their stakes in the company. BOCHK Asset Management Ltd bought a new position in shares of Carnival during the 4th quarter valued at $25,000. Measured Wealth Private Client Group LLC acquired a new stake in Carnival in the 3rd quarter worth approximately $25,000. Lloyd Advisory Services LLC. bought a new stake in Carnival during the fourth quarter worth approximately $26,000. Basecamp Wealth Advisors LLC raised its position in shares of Carnival by 107.8% in the first quarter. Basecamp Wealth Advisors LLC now owns 1,045 shares of the company's stock valued at $27,000 after purchasing an additional 542 shares during the period. Finally, Newbridge Financial Services Group Inc. lifted its stake in shares of Carnival by 381.0% in the fourth quarter. Newbridge Financial Services Group Inc. now owns 962 shares of the company's stock worth $29,000 after buying an additional 762 shares during the last quarter. Institutional investors and hedge funds own 67.19% of the company's stock.

Carnival Price Performance

The company has a debt-to-equity ratio of 1.80, a current ratio of 0.33 and a quick ratio of 0.29. The stock's 50 day moving average price is $27.48 and its two-hundred day moving average price is $28.08. The firm has a market capitalization of $36.94 billion, a price-to-earnings ratio of 12.15, a PEG ratio of 1.15 and a beta of 2.32.

Carnival (NYSE:CCL - Get Free Report) last posted its earnings results on Tuesday, June 23rd. The company reported $0.41 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.34 by $0.07. The business had revenue of $6.66 billion for the quarter, compared to analyst estimates of $6.69 billion. Carnival had a net margin of 11.24% and a return on equity of 26.11%. Carnival's revenue was up 5.3% compared to the same quarter last year. During the same period last year, the business posted $0.35 EPS. Carnival has set its FY 2026 guidance at 2.220-2.220 EPS and its Q3 2026 guidance at 1.350-1.350 EPS. On average, equities research analysts anticipate that Carnival Corporation will post 2.23 EPS for the current year.

Carnival Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 7th will be paid a dividend of $0.15 per share. The ex-dividend date is Friday, August 7th. This represents a $0.60 annualized dividend and a yield of 2.2%. Carnival's dividend payout ratio is presently 27.03%.

About Carnival

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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