Carnival (NYSE:CUK) Shares Up 9% - What's Next?

Key Points

• Shares jumped 9% Friday to about $29.72 after Carnival reported quarterly results that beat estimates (EPS $0.20 vs. $0.18 and revenue $6.17B vs. $6.13B), although trading volume was roughly 68% below its average.
• Analyst sentiment is improving—Weiss Ratings upgraded Carnival to a Buy and Zacks to Hold, leaving the stock with a MarketBeat consensus of "Moderate Buy."
• Fundamentals and ownership: Carnival trades at a P/E of 13.09 with a market cap of $5.55B but shows low liquidity (current ratio 0.30) and elevated leverage (debt/equity 1.82); institutional investors have significantly increased positions while an insider recently sold a modest stake.

Carnival Corporation (NYSE:CUK - Get Free Report) shot up 9% on Friday . The company traded as high as $29.80 and last traded at $29.7150. 917,881 shares were traded during mid-day trading, a decline of 68% from the average session volume of 2,857,263 shares. The stock had previously closed at $27.27.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on CUK. Weiss Ratings upgraded Carnival from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, March 23rd. Zacks Research upgraded Carnival to a "hold" rating in a research note on Thursday, January 22nd. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy".

Carnival Price Performance

The company has a current ratio of 0.30, a quick ratio of 0.26 and a debt-to-equity ratio of 1.82. The business's fifty day moving average is $28.00 and its 200 day moving average is $27.37. The company has a market cap of $5.55 billion, a P/E ratio of 13.09 and a beta of 2.51.

Carnival (NYSE:CUK - Get Free Report) last issued its quarterly earnings results on Friday, March 27th. The company reported $0.20 EPS for the quarter, beating analysts' consensus estimates of $0.18 by $0.02. Carnival had a return on equity of 26.92% and a net margin of 11.48%.The firm had revenue of $6.17 billion for the quarter, compared to analysts' expectations of $6.13 billion. As a group, sell-side analysts anticipate that Carnival Corporation will post 1.7 EPS for the current year.

Insiders Place Their Bets

In other news, Director Sir Jonathon Band sold 11,988 shares of Carnival stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $26.19, for a total value of $313,965.72. Following the completion of the transaction, the director owned 52,601 shares in the company, valued at $1,377,620.19. This trade represents a 18.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.08% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of CUK. Caitong International Asset Management Co. Ltd raised its holdings in Carnival by 34,144.2% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 14,725 shares of the company's stock valued at $447,000 after acquiring an additional 14,682 shares during the period. Voloridge Investment Management LLC grew its position in shares of Carnival by 4,622.5% in the fourth quarter. Voloridge Investment Management LLC now owns 803,443 shares of the company's stock valued at $24,368,000 after purchasing an additional 786,430 shares in the last quarter. Toronto Dominion Bank bought a new stake in shares of Carnival during the 4th quarter valued at $4,260,000. OLD Mission Capital LLC raised its stake in shares of Carnival by 125.9% during the 4th quarter. OLD Mission Capital LLC now owns 86,573 shares of the company's stock valued at $2,626,000 after purchasing an additional 48,244 shares during the period. Finally, Incline Global Management LLC lifted its holdings in Carnival by 165.3% during the 4th quarter. Incline Global Management LLC now owns 413,656 shares of the company's stock worth $12,633,000 after purchasing an additional 257,738 shares in the last quarter. 23.80% of the stock is currently owned by hedge funds and other institutional investors.

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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