Canada Pension Plan Investment Board Acquires 170,589 Shares of Royal Caribbean Cruises Ltd. $RCL

Key Points

• The Canada Pension Plan Investment Board significantly increased its stake in Royal Caribbean Cruises Ltd. by 293.9%, acquiring 170,589 shares to bring its total ownership to 228,631 shares, valued at approximately $46.97 million.
• Royal Caribbean recently reported earnings of $4.38 per share, outperforming analysts' estimates and reflecting a 10.4% year-over-year revenue increase to $4.54 billion.
• Insider selling activity was notable, with directors Richard D. Fain and Vagn O. Sorensen selling significant shares, indicating potential shifts in insider confidence regarding the stock's future performance.

Canada Pension Plan Investment Board boosted its position in shares of Royal Caribbean Cruises Ltd. (NYSE:RCL - Free Report) by 293.9% in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 228,631 shares of the company's stock after buying an additional 170,589 shares during the quarter. Canada Pension Plan Investment Board owned approximately 0.08% of Royal Caribbean Cruises worth $46,970,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Financial Gravity Asset Management Inc. purchased a new position in Royal Caribbean Cruises during the 1st quarter valued at $25,000. Hughes Financial Services LLC purchased a new position in Royal Caribbean Cruises during the 1st quarter valued at $26,000. Fourth Dimension Wealth LLC purchased a new stake in shares of Royal Caribbean Cruises in the 4th quarter worth about $35,000. Optimum Investment Advisors purchased a new stake in shares of Royal Caribbean Cruises in the 1st quarter worth about $31,000. Finally, Capital A Wealth Management LLC purchased a new stake in shares of Royal Caribbean Cruises in the 4th quarter worth about $40,000. 87.53% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Royal Caribbean Cruises news, Director Vagn O. Sorensen sold 10,300 shares of the firm's stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $330.04, for a total transaction of $3,399,412.00. Following the sale, the director owned 16,407 shares in the company, valued at approximately $5,414,966.28. This trade represents a 38.57% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Henry L. Pujol sold 5,207 shares of the stock in a transaction that occurred on Wednesday, July 30th. The shares were sold at an average price of $329.47, for a total transaction of $1,715,550.29. Following the sale, the chief accounting officer directly owned 7,826 shares of the company's stock, valued at approximately $2,578,432.22. This trade represents a 39.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 31,507 shares of company stock worth $10,091,282. Company insiders own 6.95% of the company's stock.

Royal Caribbean Cruises Stock Performance

RCL traded down $9.05 during midday trading on Tuesday, hitting $354.17. 1,711,539 shares of the company traded hands, compared to its average volume of 1,856,175. The company has a quick ratio of 0.21, a current ratio of 0.23 and a debt-to-equity ratio of 1.88. The firm has a market capitalization of $96.20 billion, a PE ratio of 26.55, a price-to-earnings-growth ratio of 1.02 and a beta of 2.12. The company's 50-day moving average is $331.46 and its 200 day moving average is $265.50. Royal Caribbean Cruises Ltd. has a 52 week low of $154.08 and a 52 week high of $366.50.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The company reported $4.38 earnings per share for the quarter, topping the consensus estimate of $4.04 by $0.34. Royal Caribbean Cruises had a net margin of 20.97% and a return on equity of 47.15%. The firm had revenue of $4.54 billion for the quarter, compared to analysts' expectations of $4.54 billion. During the same quarter in the prior year, the business earned $3.21 EPS. The business's quarterly revenue was up 10.4% on a year-over-year basis. Royal Caribbean Cruises has set its FY 2025 guidance at 15.410-15.550 EPS. Q3 2025 guidance at 5.550-5.650 EPS. On average, research analysts expect that Royal Caribbean Cruises Ltd. will post 14.9 EPS for the current year.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. Bank of America upped their target price on shares of Royal Caribbean Cruises from $230.00 to $355.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 23rd. UBS Group upped their target price on shares of Royal Caribbean Cruises from $311.00 to $353.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. Jefferies Financial Group upped their target price on shares of Royal Caribbean Cruises from $235.00 to $315.00 and gave the stock a "hold" rating in a research report on Monday, July 7th. Loop Capital reaffirmed a "buy" rating and issued a $290.00 target price (up from $250.00) on shares of Royal Caribbean Cruises in a research report on Tuesday, June 3rd. Finally, Stifel Nicolaus upped their target price on shares of Royal Caribbean Cruises from $400.00 to $420.00 and gave the stock a "buy" rating in a research report on Wednesday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $327.14.

About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd.