Carnival (NYSE:CUK) Shares Cross Above 200-Day Moving Average - Should You Sell?

Key Points

• Carnival Corporation's stock price has surpassed its 200-day moving average of $21.35, reaching a height of $26.69 during trading.
• The company reported earnings per share of $0.35 for the last quarter, exceeding analyst expectations of $0.24, and a revenue of $6.33 billion.
• Several institutional investors, including Parallel Advisors LLC and GAMMA Investing LLC, have significantly increased their stakes in Carnival during the second quarter, reflecting growing institutional interest.

Carnival Corporation (NYSE:CUK - Get Free Report) passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $21.35 and traded as high as $26.69. Carnival shares last traded at $26.55, with a volume of 2,456,830 shares.

Carnival Price Performance

The company has a quick ratio of 0.30, a current ratio of 0.34 and a debt-to-equity ratio of 2.58. The firm's 50-day moving average is $24.52 and its 200-day moving average is $21.43. The company has a market cap of $5.05 billion, a PE ratio of 14.52 and a beta of 2.79.

Carnival (NYSE:CUK - Get Free Report) last announced its quarterly earnings results on Tuesday, June 24th. The company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.11. Carnival had a net margin of 9.72% and a return on equity of 27.88%. The company had revenue of $6.33 billion for the quarter, compared to analysts' expectations of $6.21 billion. On average, equities analysts anticipate that Carnival Corporation will post 1.7 EPS for the current year.

Insider Activity

In related news, Director Sir Jonathon Band sold 12,500 shares of the business's stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $29.75, for a total transaction of $371,875.00. Following the transaction, the director owned 64,406 shares in the company, valued at $1,916,078.50. The trade was a 16.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.08% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Carnival

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Parallel Advisors LLC grew its holdings in Carnival by 51.1% in the second quarter. Parallel Advisors LLC now owns 1,819 shares of the company's stock worth $46,000 after purchasing an additional 615 shares during the period. GAMMA Investing LLC grew its holdings in Carnival by 38.6% in the second quarter. GAMMA Investing LLC now owns 3,862 shares of the company's stock worth $99,000 after purchasing an additional 1,075 shares during the period. Vident Advisory LLC grew its holdings in Carnival by 9.1% in the first quarter. Vident Advisory LLC now owns 17,363 shares of the company's stock worth $304,000 after purchasing an additional 1,444 shares during the period. Sound Income Strategies LLC purchased a new stake in Carnival in the second quarter worth about $44,000. Finally, Vanguard Personalized Indexing Management LLC grew its holdings in Carnival by 17.5% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 14,097 shares of the company's stock worth $360,000 after purchasing an additional 2,103 shares during the period. Hedge funds and other institutional investors own 23.80% of the company's stock.

About Carnival

Carnival Plc operates as a global cruise and vacation company. The firm offers holiday and vacation products to a customer base that is broadly varied in terms of cultures, languages and leisure-time preferences. It operates through the North America and Australia (NAA), Europe and Asia (EA), Cruise Support, and Tour and Other segments.