Carnival (NYSE:CUK) Trading Down 4.6% - Should You Sell?

Key Points

• Shares of Carnival fell 4.6% to $27.47 on Thursday, trading as low as $27.43 on volume of ~933,878 shares (down about 67% from the average session volume); the 50-day and 200-day moving averages are $28.08 and $27.37, respectively.
• Weiss Ratings upgraded Carnival from Hold (c+) to Buy (b-), and MarketBeat shows a consensus of "Moderate Buy" (one Buy, one Hold).
• Carnival beat estimates with Q earnings of $0.20 EPS vs $0.18 and revenue of $6.17B vs $6.13B, but balance-sheet metrics show a P/E of 12.14, debt-to-equity of 1.82 and a low current ratio of 0.30; meanwhile a director sold 11,988 shares (an ~18.6% reduction in his stake).

Shares of Carnival Corporation (NYSE:CUK - Get Free Report) traded down 4.6% during trading on Thursday . The stock traded as low as $27.43 and last traded at $27.47. 933,878 shares changed hands during mid-day trading, a decline of 67% from the average session volume of 2,856,372 shares. The stock had previously closed at $28.80.

Analysts Set New Price Targets

Several analysts recently commented on the company. 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 report on Thursday, January 22nd. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy".

Carnival Price Performance

The company has a fifty day moving average of $28.08 and a 200 day moving average of $27.37. The firm has a market capitalization of $5.15 billion, a P/E ratio of 12.14 and a beta of 2.51. The company has a debt-to-equity ratio of 1.82, a current ratio of 0.30 and a quick ratio of 0.26.

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

Insider Activity

In other Carnival news, Director Sir Jonathon Band sold 11,988 shares of the stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $26.19, for a total transaction of $313,965.72. Following the transaction, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.08% of the company's stock.

Hedge Funds Weigh In On Carnival

A number of institutional investors and hedge funds have recently modified their holdings of CUK. CIBC Private Wealth Group LLC boosted its holdings in shares of Carnival by 376.5% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 953 shares of the company's stock worth $25,000 after buying an additional 753 shares in the last quarter. Raymond James Financial Inc. bought a new position in shares of Carnival during the 2nd quarter worth approximately $26,000. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Carnival by 188.9% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,115 shares of the company's stock worth $28,000 after buying an additional 729 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of Carnival by 120.7% during the 4th quarter. EverSource Wealth Advisors LLC now owns 980 shares of the company's stock worth $30,000 after buying an additional 536 shares in the last quarter. Finally, Kestra Advisory Services LLC bought a new position in shares of Carnival during the 4th quarter worth approximately $34,000. 23.80% of the stock is currently owned by 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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