Citigroup Has Lowered Expectations for Royal Caribbean Cruises (NYSE:RCL) Stock Price

Key Points

• Citigroup lowered its price target for Royal Caribbean from $377 to $348 but kept a "buy" rating—implying roughly a 30% upside—and analysts' consensus target sits around $347 with an average "Moderate Buy" rating.
• Royal Caribbean beat Q1 EPS ($3.60 vs. $3.20) with revenue roughly in line, but management trimmed Q2 and FY2026 guidance (Q2: 3.83–3.93; FY: 17.10–17.50 EPS) due to higher fuel costs and geopolitical headwinds.
• Insiders sold nearly 2.0 million shares (~$627M) last quarter, while large institutional investors continued adding to positions, leaving institutions with about 87.5% ownership of the stock.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) had its target price reduced by research analysts at Citigroup from $377.00 to $348.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Citigroup's target price would indicate a potential upside of 30.14% from the company's current price.

Several other equities research analysts also recently weighed in on the stock. Wells Fargo & Company raised their price target on shares of Royal Caribbean Cruises from $349.00 to $360.00 and gave the company an "overweight" rating in a research report on Friday. Mizuho set a $380.00 price target on shares of Royal Caribbean Cruises in a research report on Friday. The Goldman Sachs Group raised their price target on shares of Royal Caribbean Cruises from $310.00 to $370.00 and gave the company a "buy" rating in a research report on Friday, January 30th. Truist Financial raised their price target on shares of Royal Caribbean Cruises from $318.00 to $327.00 and gave the company a "hold" rating in a research report on Tuesday, March 24th. Finally, William Blair reaffirmed an "outperform" rating on shares of Royal Caribbean Cruises in a research report on Thursday, January 29th. Sixteen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $347.10.

Royal Caribbean Cruises Stock Up 1.4%

Shares of RCL traded up $3.65 on Friday, hitting $267.41. 1,838,307 shares of the stock traded hands, compared to its average volume of 2,557,291. The company has a market capitalization of $71.72 billion, a PE ratio of 17.12, a P/E/G ratio of 0.90 and a beta of 1.93. The company has a debt-to-equity ratio of 1.77, a quick ratio of 0.16 and a current ratio of 0.18. The business has a 50 day simple moving average of $279.53 and a 200 day simple moving average of $285.81. Royal Caribbean Cruises has a one year low of $223.00 and a one year high of $366.50.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $3.60 earnings per share for the quarter, beating the consensus estimate of $3.20 by $0.40. The company had revenue of $4.45 billion during the quarter, compared to the consensus estimate of $4.46 billion. Royal Caribbean Cruises had a net margin of 23.80% and a return on equity of 45.06%. The firm's quarterly revenue was up 11.3% compared to the same quarter last year. During the same quarter last year, the firm earned $2.71 earnings per share. Royal Caribbean Cruises has set its Q2 2026 guidance at 3.830-3.930 EPS and its FY 2026 guidance at 17.100-17.500 EPS. As a group, equities analysts forecast that Royal Caribbean Cruises will post 17.35 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Royal Caribbean Cruises news, insider Laura H. Bethge sold 7,854 shares of Royal Caribbean Cruises stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $326.21, for a total value of $2,562,053.34. Following the completion of the sale, the insider owned 32,786 shares of the company's stock, valued at approximately $10,695,121.06. The trade was a 19.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Arne Alexander Wilhelmsen sold 245,476 shares of the business's stock in a transaction on Friday, February 27th. The shares were sold at an average price of $311.54, for a total transaction of $76,475,593.04. Following the sale, the director directly owned 16,435,910 shares of the company's stock, valued at approximately $5,120,443,401.40. The trade was a 1.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 1,967,319 shares of company stock valued at $626,681,935. Company insiders own 6.95% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Capital International Investors raised its stake in shares of Royal Caribbean Cruises by 9.8% in the fourth quarter. Capital International Investors now owns 36,165,358 shares of the company's stock worth $10,088,156,000 after buying an additional 3,215,382 shares during the period. Vanguard Group Inc. raised its stake in shares of Royal Caribbean Cruises by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 30,253,450 shares of the company's stock worth $8,438,292,000 after buying an additional 187,283 shares during the period. Capital Research Global Investors raised its stake in shares of Royal Caribbean Cruises by 4.8% in the fourth quarter. Capital Research Global Investors now owns 20,176,544 shares of the company's stock worth $5,627,669,000 after buying an additional 920,042 shares during the period. State Street Corp raised its stake in shares of Royal Caribbean Cruises by 0.8% in the third quarter. State Street Corp now owns 10,576,751 shares of the company's stock worth $3,433,052,000 after buying an additional 84,202 shares during the period. Finally, Geode Capital Management LLC raised its stake in shares of Royal Caribbean Cruises by 2.3% in the fourth quarter. Geode Capital Management LLC now owns 7,054,191 shares of the company's stock worth $1,961,758,000 after buying an additional 155,491 shares during the period. Institutional investors own 87.53% of the company's stock.

Key Headlines Impacting Royal Caribbean Cruises

Here are the key news stories impacting Royal Caribbean Cruises this week:

• Positive Sentiment: Q1 results beat expectations: RCL reported adjusted EPS above consensus and revenue roughly in line, with management citing healthy demand and strong WAVE-season performance — a primary driver of the positive market reaction. Royal Caribbean (RCL) Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Shareholder returns and demand visibility: RCL disclosed roughly $1.1B returned to shareholders (buybacks + dividends) and highlighted record bookings, supporting near-term cash flow and investor confidence. PR Newswire: First Quarter Results
• Positive Sentiment: Regional recovery in demand: Mediterranean itineraries showed booking resilience despite regional tensions, easing some concerns about lost demand on key European routes. Royal Caribbean's Mediterranean Bookings Bounce Back
• Neutral Sentiment: Valuation & pullback analysis: Analysts and market pieces are revisiting RCL's valuation after recent volatility — some see the pullback as a buying opportunity given growth in demand, others note cyclical risks. This coverage is shaping investor positioning but not providing new company data. A Look At Royal Caribbean Cruises (RCL) Valuation
• Negative Sentiment: Fuel costs and geopolitical headwinds trimmed guidance: Management updated FY 2026 EPS guidance to $17.10–17.50 and Q2 to $3.83–3.93, citing higher fuel costs tied to Middle East tensions — a direct profit-pressure item that prompted caution. RCL Q1 deep dive: Demand remains firm, but guidance trimmed
• Negative Sentiment: Analysts flag cuts vs. prior targets: Outside reports note RCL lowered prior profit targets (reflecting surging fuel costs), which introduces execution risk if fuel or itinerary disruptions persist. Reuters: Royal Caribbean cuts annual profit forecast

About Royal Caribbean Cruises

Royal Caribbean Cruises NYSE: RCL, operating as part of the Royal Caribbean Group, is a global cruise company that develops, markets and operates passenger cruise ships. The company operates multiple consumer-facing cruise brands that offer short- and long-duration itineraries and a range of onboard experiences. Its core activities include itineraries and voyage operations, guest services and hospitality, onboard food and beverage, entertainment and recreation programming, and the commercial activities needed to sell and support cruises through both direct and travel‑agent channels.

Royal Caribbean's ships serve a broad set of geographies worldwide, regularly deploying vessels in the Caribbean, North America (including Alaska), Europe, Asia, Australia and South America.

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