Capital Group Private Client Services Inc. Trims Stock Position in Royal Caribbean Cruises Ltd. $RCL

Key Points

• Capital Group Private Client Services Inc. trimmed its position in Royal Caribbean by 81.3% in Q3, selling 388,244 shares and retaining 89,244 shares valued at roughly $28.9 million.
• Royal Caribbean's board authorized a $2.0 billion share repurchase (up to 2.6% of outstanding stock) and the company raised its quarterly dividend to $1.50 (annualized $6.00, ~2.1% yield).
• Insiders have been active sellers: Director Arne Alexander Wilhelmsen sold 245,476 shares (~$76.5 million), and insiders disposed of about 1.97 million shares valued at ~$626.7 million over the last quarter.

Capital Group Private Client Services Inc. trimmed its position in Royal Caribbean Cruises Ltd. (NYSE:RCL - Free Report) by 81.3% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 89,244 shares of the company's stock after selling 388,244 shares during the period. Capital Group Private Client Services Inc.'s holdings in Royal Caribbean Cruises were worth $28,878,000 at the end of the most recent reporting period.

Several other hedge funds also recently modified their holdings of the company. Brighton Jones LLC boosted its position in Royal Caribbean Cruises by 12.2% during the fourth quarter. Brighton Jones LLC now owns 1,312 shares of the company's stock worth $303,000 after acquiring an additional 143 shares during the last quarter. Woodline Partners LP raised its holdings in Royal Caribbean Cruises by 40.8% in the 1st quarter. Woodline Partners LP now owns 20,918 shares of the company's stock valued at $4,297,000 after acquiring an additional 6,063 shares during the last quarter. Savant Capital LLC raised its holdings in Royal Caribbean Cruises by 3.7% in the 2nd quarter. Savant Capital LLC now owns 6,413 shares of the company's stock valued at $2,008,000 after acquiring an additional 230 shares during the last quarter. Vestmark Advisory Solutions Inc. purchased a new position in shares of Royal Caribbean Cruises during the 2nd quarter worth $487,000. Finally, Global Wealth Management Investment Advisory Inc. purchased a new position in shares of Royal Caribbean Cruises during the 2nd quarter worth $207,000. 87.53% of the stock is owned by institutional investors and hedge funds.

Royal Caribbean Cruises Stock Up 4.6%

Shares of NYSE RCL opened at $290.96 on Tuesday. The firm has a market cap of $78.71 billion, a price-to-earnings ratio of 18.64, a PEG ratio of 0.91 and a beta of 1.87. Royal Caribbean Cruises Ltd. has a 1 year low of $164.01 and a 1 year high of $366.50. 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 stock's 50-day simple moving average is $304.40 and its 200-day simple moving average is $301.83.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last issued its quarterly earnings data on Thursday, January 29th. The company reported $2.80 earnings per share for the quarter, meeting analysts' consensus estimates of $2.80. Royal Caribbean Cruises had a return on equity of 45.06% and a net margin of 23.80%.The firm had revenue of $4.26 billion during the quarter, compared to analyst estimates of $4.28 billion. During the same quarter last year, the firm earned $1.63 EPS. Royal Caribbean Cruises's quarterly revenue was up 13.2% on a year-over-year basis. As a group, equities analysts anticipate that Royal Caribbean Cruises Ltd. will post 14.9 earnings per share for the current fiscal year.

Royal Caribbean Cruises announced that its Board of Directors has initiated a share repurchase plan on Wednesday, December 10th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 2.6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Royal Caribbean Cruises Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, April 3rd. Stockholders of record on Friday, March 6th will be given a dividend of $1.50 per share. The ex-dividend date of this dividend is Friday, March 6th. This is an increase from Royal Caribbean Cruises's previous quarterly dividend of $1.00. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.1%. Royal Caribbean Cruises's dividend payout ratio is 38.44%.

Insider Transactions at Royal Caribbean Cruises

In related news, Director Arne Alexander Wilhelmsen sold 245,476 shares of Royal Caribbean Cruises stock in a transaction on Friday, February 27th. The shares were sold at an average price of $311.54, for a total value of $76,475,593.04. Following the completion of the sale, the director owned 16,435,910 shares in the company, valued at approximately $5,120,443,401.40. The trade was a 1.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Laura H. Bethge sold 7,854 shares of the company's stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $326.21, for a total transaction of $2,562,053.34. Following the completion of the sale, the insider directly owned 32,786 shares in the company, valued at $10,695,121.06. This represents a 19.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 1,967,319 shares of company stock valued at $626,681,935. 6.95% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. Barclays increased their price target on shares of Royal Caribbean Cruises from $324.00 to $361.00 and gave the stock an "overweight" rating in a research note on Friday, January 30th. William Blair restated an "outperform" rating on shares of Royal Caribbean Cruises in a report on Thursday, January 29th. Citigroup increased their target price on Royal Caribbean Cruises from $332.00 to $398.00 and gave the stock a "buy" rating in a research report on Monday, February 2nd. The Goldman Sachs Group lifted their target price on Royal Caribbean Cruises from $310.00 to $370.00 and gave the company a "buy" rating in a report on Friday, January 30th. Finally, TD Cowen reissued a "buy" rating on shares of Royal Caribbean Cruises in a research report on Tuesday, January 13th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $348.29.

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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