Carnival (NYSE:CCL) Trading Down 4.5% - Should You Sell?

Key Points

• Carnival shares fell 4.5% to $27.51 on Thursday, trading as low as $27.45 on volume of 7.72 million shares—about a 68% decline from its average session volume.
• Recent quarter beat estimates: Carnival reported $0.20 EPS vs $0.18 expected and $6.17B in revenue vs $6.13B, but analyst views are mixed with a MarketBeat consensus of "Moderate Buy" and a $33.99 price target amid several downgrades.
• Carnival shows significant leverage and tight liquidity (market cap ≈ $33.9B, P/E 12.15, debt/equity 1.82, current ratio 0.30); a director recently sold ~11,988 shares and institutional investors own about 67% of the stock.

Carnival Corporation (NYSE:CCL - Get Free Report)'s stock price fell 4.5% during trading on Thursday . The company traded as low as $27.45 and last traded at $27.5090. 7,719,226 shares were traded during trading, a decline of 68% from the average session volume of 24,300,805 shares. The stock had previously closed at $28.82.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Wall Street Zen downgraded shares of Carnival from a "buy" rating to a "hold" rating in a research note on Saturday, March 28th. Zacks Research downgraded shares of Carnival from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 9th. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Carnival from $33.00 to $34.00 and gave the stock a "hold" rating in a research note on Monday, December 22nd. Stifel Nicolaus reduced their price objective 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, William Blair reiterated an "outperform" rating on shares of Carnival in a research note on Tuesday, March 3rd. Twenty-one research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $33.99.

Carnival Stock Down 5.1%

The company has a market capitalization of $33.89 billion, a P/E ratio of 12.15, a price-to-earnings-growth ratio of 1.26 and a beta of 2.48. The company has a debt-to-equity ratio of 1.82, a quick ratio of 0.26 and a current ratio of 0.30. The firm's fifty day moving average is $28.19 and its 200-day moving average is $28.44.

Carnival (NYSE:CCL - Get Free Report) last announced its quarterly earnings results on Friday, March 27th. The company reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.02. The company had revenue of $6.17 billion for the quarter, compared to analyst estimates of $6.13 billion. Carnival had a net margin of 11.48% and a return on equity of 26.92%. The firm's revenue was up 6.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.13 EPS. As a group, equities research analysts predict that Carnival Corporation will post 1.77 EPS for the current year.

Insider Activity

In related news, Director Sir Jonathon Band sold 11,988 shares of Carnival stock in a transaction that occurred 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 directly owned 52,601 shares of the company's stock, valued at approximately $1,377,620.19. The trade was a 18.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 7.90% of the company's stock.

Institutional Investors Weigh In On Carnival

Several hedge funds and other institutional investors have recently made changes to their positions in CCL. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Carnival by 5.1% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 112,167 shares of the company's stock worth $2,191,000 after acquiring an additional 5,435 shares during the last quarter. Great Lakes Advisors LLC bought a new stake in Carnival during the 1st quarter worth approximately $228,000. Empowered Funds LLC grew its holdings in Carnival by 61.6% during the 1st quarter. Empowered Funds LLC now owns 30,437 shares of the company's stock worth $594,000 after acquiring an additional 11,601 shares during the last quarter. Woodline Partners LP grew its holdings in Carnival by 41.9% during the 1st quarter. Woodline Partners LP now owns 88,522 shares of the company's stock worth $1,729,000 after acquiring an additional 26,141 shares during the last quarter. Finally, Baird Financial Group Inc. grew its holdings in Carnival by 57.0% during the 2nd quarter. Baird Financial Group Inc. now owns 64,720 shares of the company's stock worth $1,820,000 after acquiring an additional 23,484 shares during the last quarter. 67.19% of the stock is owned by institutional investors.

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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