Royal Caribbean Cruises Ltd. (NYSE:RCL) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts maintain a moderately bullish view: Twenty-two firms give Royal Caribbean a consensus “Moderate Buy” rating, with 13 buys, eight holds and one strong buy. The average 12-month price target is $356.10.
• Royal Caribbean exceeded quarterly earnings expectations, reporting $4.21 in EPS and $4.83 billion in revenue, while revenue rose 6.5% year over year. The company also declared a quarterly dividend of $1.50 per share, equivalent to a 2.5% annual yield.
• The planned approximately $3 billion acquisition of a 50% stake in Sandals and Beaches Resorts offers diversification and cross-selling potential, but adds capital requirements and execution risk amid the company’s substantial leverage and recent pressure on cabin pricing.

Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the twenty-two ratings firms that are currently covering the company, Marketbeat Ratings reports. Eight analysts have rated the stock with a hold recommendation, thirteen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $356.10.

Several analysts recently commented on RCL shares. Susquehanna boosted their price objective on shares of Royal Caribbean Cruises from $350.00 to $372.00 and gave the stock a "positive" rating in a report on Wednesday, July 29th. Citigroup lifted their price target on shares of Royal Caribbean Cruises from $327.00 to $362.00 and gave the company a "buy" rating in a research report on Wednesday, July 29th. Morgan Stanley upped their price target on Royal Caribbean Cruises from $280.00 to $300.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. JPMorgan Chase & Co. boosted their target price on Royal Caribbean Cruises from $345.00 to $394.00 and gave the stock an "overweight" rating in a research report on Thursday. Finally, TD Cowen upgraded Royal Caribbean Cruises to a "strong-buy" rating in a research report on Tuesday, September 8th.

Royal Caribbean Cruises Stock Performance

Shares of RCL opened at $243.57 on Friday. The company's 50 day simple moving average is $284.09 and its 200-day simple moving average is $281.85. The firm has a market cap of $65.14 billion, a PE ratio of 15.05, a price-to-earnings-growth ratio of 0.78 and a beta of 1.74. Royal Caribbean Cruises has a 12-month low of $222.22 and a 12-month high of $356.39. The company has a current ratio of 0.21, a quick ratio of 0.19 and a debt-to-equity ratio of 2.03.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The company reported $4.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.98 by $0.23. Royal Caribbean Cruises had a return on equity of 43.33% and a net margin of 23.54%.The firm had revenue of $4.83 billion for the quarter, compared to analysts' expectations of $4.82 billion. During the same quarter in the previous year, the firm posted $4.38 EPS. The firm's revenue for the quarter was up 6.5% on a year-over-year basis. Royal Caribbean Cruises has set its FY 2026 guidance at 17.730-17.870 EPS and its Q3 2026 guidance at 6.260-6.360 EPS. As a group, equities analysts predict that Royal Caribbean Cruises will post 17.78 EPS for the current year.

Royal Caribbean Cruises Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th will be issued a dividend of $1.50 per share. This represents a $6.00 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date is Thursday, September 17th. Royal Caribbean Cruises's dividend payout ratio is 37.08%.

Key Headlines Impacting Royal Caribbean Cruises

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

• Positive Sentiment: Royal Caribbean’s agreement to acquire a 50% stake in Sandals Resorts and Beaches Resorts for approximately $3 billion provides a new growth platform beyond cruising. The transaction, expected to close in early 2027, could help broaden the company’s customer ecosystem and create cross-selling opportunities. A Cruise Line Betting on Land: Is Royal Caribbean’s Sandals Deal Genius or Overreach?
• Positive Sentiment: Analysts reacted favorably to the Sandals partnership. Citi placed RCL on a 90-day positive catalyst watch, while JPMorgan raised its price target to $394 from $345 and maintained an “overweight” rating. BMO Capital Markets also rated the shares “outperform,” reinforcing the bullish view. JPMorgan, Citi Bullish on Royal Caribbean’s Sandals Partnership
• Positive Sentiment: Strong bookings, cash flow and raised 2026 earnings expectations suggest that cruise demand remains resilient despite the stock’s decline over the past year. Some valuation analysis estimates that RCL could be materially undervalued if earnings growth continues. Royal Caribbean Cruises Could Be 31% Undervalued
• Neutral Sentiment: RCL’s recent advance occurred on above-average volume, but analysts caution that earnings-estimate revisions alone may not sustain additional near-term gains. The shares have also delivered a strong five-year return while remaining sharply lower over the past year, creating a mixed valuation signal. Royal Caribbean Moves Higher: Will This Strength Last?
• Negative Sentiment: The Sandals investment increases capital requirements and execution risk, while Royal Caribbean already carries substantial leverage. Investors will need evidence that the resort stake can generate attractive returns without weakening the cruise company’s balance sheet.
• Negative Sentiment: Recent weakness appears linked less to collapsing demand than to slower cabin pricing in the third quarter. Continued pressure on fares, combined with the risk that the market has already priced in much of the earnings recovery, could limit further upside. Should You Buy Royal Caribbean At a One-Year Low?

Insider Activity at Royal Caribbean Cruises

In related news, CEO Michael Bayley sold 12,811 shares of the business's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $315.99, for a total value of $4,048,147.89. Following the completion of the transaction, the chief executive officer owned 45,297 shares of the company's stock, valued at approximately $14,313,399.03. The trade was a 22.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 6.44% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Royal Caribbean Cruises

Several hedge funds have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in shares of Royal Caribbean Cruises in the second quarter worth approximately $6,549,422,000. Capital International Investors increased its holdings in shares of Royal Caribbean Cruises by 9.8% during the 4th 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 last quarter. Primecap Management Co. CA purchased a new position in shares of Royal Caribbean Cruises in the 2nd quarter worth $669,804,000. Jupiter Topco LLC purchased a new stake in Royal Caribbean Cruises during the second quarter valued at about $597,350,000. Finally, Norges Bank acquired a new stake in Royal Caribbean Cruises during the fourth quarter worth about $456,752,000. Institutional investors and hedge funds own 87.53% of the company's stock.

About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd., now operating as Royal Caribbean Group, is a global cruise vacation company headquartered in Miami, Florida. The company provides cruise vacations and related travel experiences through a fleet of ocean-going ships serving destinations across the Caribbean, Europe, Alaska, Asia, Australia and New Zealand, and other regions.

Royal Caribbean Group's principal brands include Royal Caribbean International, Celebrity Cruises and Silversea. Royal Caribbean International focuses on large-ship vacations featuring entertainment, dining, family activities and onboard attractions; Celebrity Cruises offers premium cruises; and Silversea specializes in luxury and expedition voyages.

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