Carnival (NYSE:CUK) Sees Unusually-High Trading Volume - Still a Buy?

Key Points

• Unusually-high trading volume: About 5.92 million Carnival shares traded (a 102% increase vs. the previous session) while the stock was around $25.95, roughly flat to up 0.5% intraday.
• Analyst sentiment: Weiss Ratings upgraded Carnival from Hold to Buy and MarketBeat shows an average rating of "Moderate Buy" (one Buy, one Hold).
• Earnings and fundamentals: Carnival topped quarterly estimates with $0.20 EPS (vs. $0.18) and $6.17B revenue, while carrying a $4.86B market cap, P/E of 11.45 and a relatively high debt-to-equity of 1.82.

Carnival Corporation (NYSE:CUK - Get Free Report) shares saw unusually-strong trading volume on Tuesday . Approximately 5,922,578 shares changed hands during mid-day trading, an increase of 102% from the previous session's volume of 2,926,137 shares.The stock last traded at $25.95 and had previously closed at $25.65.

Wall Street Analyst Weigh In

Several research firms have issued reports on CUK. Weiss Ratings upgraded Carnival from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 23rd. Zacks Research raised Carnival to a "hold" rating in a research note on Thursday, January 22nd. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy".

Carnival Trading Up 0.5%

The firm has a market capitalization of $4.86 billion, a price-to-earnings ratio of 11.45 and a beta of 2.36. 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 business has a fifty day moving average price of $26.95 and a 200 day moving average price of $27.45.

Carnival (NYSE:CUK - Get Free Report) last released its quarterly earnings data on Friday, March 27th. The company reported $0.20 EPS for the quarter, topping analysts' consensus estimates of $0.18 by $0.02. The business had revenue of $6.17 billion during the quarter, compared to the consensus estimate of $6.13 billion. Carnival had a return on equity of 26.92% and a net margin of 11.48%.

Insider Transactions at Carnival

In related news, Director Sir Jonathon Band sold 11,988 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $26.19, for a total value of $313,965.72. Following the completion of the sale, the director directly owned 52,601 shares in the company, valued at approximately $1,377,620.19. This represents a 18.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.08% of the company's stock.

Institutional Trading of Carnival

Several large investors have recently added to or reduced their stakes in the stock. Norges Bank acquired a new stake in Carnival in the 4th quarter valued at $180,874,000. Arrowstreet Capital Limited Partnership lifted its position in shares of Carnival by 46.8% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,378,747 shares of the company's stock worth $102,477,000 after purchasing an additional 1,076,529 shares during the last quarter. Renaissance Technologies LLC lifted its position in shares of Carnival by 17.2% during the fourth quarter. Renaissance Technologies LLC now owns 2,903,970 shares of the company's stock worth $88,077,000 after purchasing an additional 425,870 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in Carnival by 17.1% in the fourth quarter. Goldman Sachs Group Inc. now owns 2,374,072 shares of the company's stock worth $72,006,000 after acquiring an additional 347,367 shares during the last quarter. Finally, Bank of Montreal Can lifted its holdings in Carnival by 12.4% in the fourth quarter. Bank of Montreal Can now owns 1,874,207 shares of the company's stock worth $56,845,000 after acquiring an additional 206,599 shares during the last quarter. 23.80% of the stock is currently owned by institutional investors and hedge funds.

About Carnival

Carnival plc NYSE: CUK is one of the world's leading cruise operators, offering leisure travel services to millions of passengers each year. Through its portfolio of brands, the company provides passenger cruises that combine accommodations, entertainment, dining, shore excursions and onboard amenities. Carnival's vessels range from contemporary “fun ships” to premium and luxury experiences, catering to a broad spectrum of travelers from families and couples to solo adventurers.

Founded in 1972 by Ted Arison, the company has grown through organic fleet expansion and strategic acquisitions.

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