Carnival Corporation $CCL Position Lowered by 59 North Capital Management LP

Key Points

• 59 North Capital Management reduced its Carnival stake by 6.7% in the fourth quarter, selling 547,482 shares and leaving the fund with 7.58 million shares worth about $231.6 million.
• Carnival recently reported better-than-expected quarterly results, with EPS of $0.20 versus $0.18 expected and revenue of $6.17 billion, up 6.1% from a year earlier.
• Despite some recent stock pressure, analysts remain broadly positive: Carnival carries a “Moderate Buy” consensus rating, and its average price target is $34.94 versus a recent price near $29.90.

59 North Capital Management LP cut its holdings in shares of Carnival Corporation (NYSE:CCL - Free Report) by 6.7% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 7,583,688 shares of the company's stock after selling 547,482 shares during the period. Carnival makes up 7.2% of 59 North Capital Management LP's portfolio, making the stock its 7th biggest position. 59 North Capital Management LP owned about 0.61% of Carnival worth $231,606,000 as of its most recent SEC filing.

Other institutional investors also recently modified their holdings of the company. Viking Global Investors LP purchased a new position in Carnival in the fourth quarter worth about $429,448,000. Wellington Management Group LLP lifted its position in shares of Carnival by 99.6% during the 3rd quarter. Wellington Management Group LLP now owns 12,159,619 shares of the company's stock valued at $351,535,000 after buying an additional 6,066,336 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Carnival by 50.7% during the 3rd quarter. Dimensional Fund Advisors LP now owns 14,510,016 shares of the company's stock valued at $419,573,000 after buying an additional 4,883,024 shares in the last quarter. Victory Capital Management Inc. lifted its position in shares of Carnival by 1,619.1% during the 4th quarter. Victory Capital Management Inc. now owns 5,132,270 shares of the company's stock valued at $156,740,000 after buying an additional 4,833,723 shares in the last quarter. Finally, Norges Bank purchased a new position in shares of Carnival during the 4th quarter valued at about $124,201,000. 67.19% of the stock is owned by hedge funds and other institutional investors.

Carnival Stock Down 3.2%

Shares of CCL opened at $29.90 on Thursday. The stock has a market capitalization of $37.04 billion, a price-to-earnings ratio of 13.29, a price-to-earnings-growth ratio of 1.37 and a beta of 2.32. Carnival Corporation has a 1 year low of $22.58 and a 1 year high of $34.03. The business's 50 day simple moving average is $27.11 and its 200-day simple moving average is $28.25. 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:CCL - Get Free Report) last released its earnings results on Friday, March 27th. The company reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.02. The firm had revenue of $6.17 billion for the quarter, compared to the consensus estimate of $6.13 billion. Carnival had a return on equity of 26.92% and a net margin of 11.48%.The company's revenue for the quarter was up 6.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.13 EPS. As a group, equities analysts expect that Carnival Corporation will post 2.22 earnings per share for the current fiscal year.

Carnival Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Monday, May 18th were paid a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 2.0%. The ex-dividend date was Monday, May 18th. Carnival's dividend payout ratio (DPR) is presently 26.67%.

Key Headlines Impacting Carnival

Here are the key news stories impacting Carnival this week:

• Positive Sentiment: Analysts and market commentary continue to highlight Carnival as a potential earnings beat candidate for Q2, with expectations for stronger revenue and EPS ahead of the June 23 report. Article Title
• Positive Sentiment: Brokerage coverage remains supportive, with Carnival carrying a consensus “Moderate Buy” rating, reinforcing a bullish longer-term outlook. Article Title
• Positive Sentiment: Recent commentary says Carnival has outperformed the consumer cyclical sector over the past year, suggesting improving investor confidence in the cruise operator’s rebound story. Article Title
• Positive Sentiment: The easing of shipping-route disruption risk and the broader peace-deal headlines have been viewed as supportive for travel-related demand and lower operating friction for cruise lines. Article Title
• Neutral Sentiment: Several articles are focused on previewing Carnival’s upcoming quarterly results, including deeper looks at key operating metrics beyond revenue and EPS; these reports add attention, but do not by themselves change fundamentals. Article Title
• Negative Sentiment: Short-term pressure may also be coming from valuation-focused commentary noting the stock’s recent decline and comparing the share price with a lower GF Value estimate, which can encourage caution near earnings. Article Title

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on CCL shares. Wall Street Zen cut Carnival from a "buy" rating to a "hold" rating in a research report on Saturday, March 28th. The Goldman Sachs Group lowered their price objective on Carnival from $34.00 to $30.00 and set a "buy" rating on the stock in a research report on Wednesday, March 11th. Barclays lowered their price objective on Carnival from $37.00 to $36.00 and set an "overweight" rating on the stock in a research report on Tuesday, March 24th. Citigroup boosted their price target on Carnival from $35.00 to $37.00 and gave the stock a "buy" rating in a report on Tuesday. Finally, Stifel Nicolaus boosted their price target on Carnival from $35.00 to $36.00 and gave the stock a "buy" rating in a report on Friday, June 12th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $34.94.

Insider Activity

In other news, insider Bettina Alejandra Deynes sold 43,058 shares of the firm's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $28.10, for a total value of $1,209,929.80. Following the completion of the transaction, the insider directly owned 69,238 shares in the company, valued at $1,945,587.80. This trade represents a 38.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Sir Jonathon Band sold 11,988 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $26.19, for a total value of $313,965.72. Following the completion of the sale, the director directly owned 52,601 shares in the company, valued at approximately $1,377,620.19. The trade was a 18.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 55,058 shares of company stock valued at $1,524,195. Company insiders own 7.90% of the company's stock.

Carnival Profile

Carnival Corporation NYSE: CCL is a global cruise operator that provides leisure travel services through a portfolio of passenger cruise brands. The company's core business is operating cruise ships that offer multi-night voyages and associated vacation services, including onboard accommodations, dining, entertainment, spa and wellness offerings, casinos, youth programs, and organized shore excursions. Carnival markets cruise vacations to a broad range of consumers, from value-focused travelers to premium and luxury segments, through differentiated brand positioning and onboard experiences.

Its operating structure comprises multiple well-known cruise brands that target distinct geographic and demographic markets.

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