Carnival Corporation $CCL Stock Position Raised by Auto Owners Insurance Co

Key Points

• Auto Owners Insurance Co sharply increased its Carnival stake by 2,954% in the fourth quarter, ending with 19.85 million shares worth about $60.6 million.
• Carnival reported better-than-expected quarterly results, with EPS of $0.20 versus $0.18 expected and revenue of $6.17 billion, while revenue rose 6.1% year over year.
• Analysts remain generally constructive on CCL, with a Moderate Buy consensus and a $34.94 average price target, even as some insiders recently sold shares.

Auto Owners Insurance Co increased its stake in Carnival Corporation (NYSE:CCL - Free Report) by 2,954.0% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 19,851,000 shares of the company's stock after acquiring an additional 19,201,000 shares during the quarter. Auto Owners Insurance Co owned approximately 1.60% of Carnival worth $60,625,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of the stock. BOCHK Asset Management Ltd purchased a new stake in shares of Carnival in the fourth quarter valued at $25,000. Measured Wealth Private Client Group LLC purchased a new stake in shares of Carnival during the 3rd quarter worth about $25,000. Lloyd Advisory Services LLC. purchased a new stake in shares of Carnival during the 4th quarter worth about $26,000. Newbridge Financial Services Group Inc. increased its holdings in shares of Carnival by 381.0% during the 4th quarter. Newbridge Financial Services Group Inc. now owns 962 shares of the company's stock valued at $29,000 after acquiring an additional 762 shares during the last quarter. Finally, Optima Capital LLC acquired a new position in Carnival during the 4th quarter worth $32,000. 67.19% of the stock is owned by institutional investors and hedge funds.

Carnival Stock Up 0.2%

Shares of CCL opened at $30.92 on Friday. The firm's 50 day moving average is $27.28 and its 200-day moving average is $28.30. The stock has a market capitalization of $38.31 billion, a PE ratio of 13.74, a P/E/G ratio of 1.36 and a beta of 2.32. The company has a current ratio of 0.30, a quick ratio of 0.26 and a debt-to-equity ratio of 1.82. Carnival Corporation has a 12 month low of $22.58 and a 12 month high of $34.03.

Carnival (NYSE:CCL - Get Free Report) last released its earnings results on Friday, March 27th. The company reported $0.20 EPS 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 analyst estimates of $6.13 billion. Carnival had a net margin of 11.48% and a return on equity of 26.92%. The business's quarterly revenue was up 6.1% compared to the same quarter last year. During the same period last year, the firm earned $0.13 EPS. Equities research analysts forecast that Carnival Corporation will post 2.22 EPS for the current year.

Carnival Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Monday, May 18th were issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date was Monday, May 18th. Carnival's payout ratio is 26.67%.

Key Stories Impacting Carnival

Here are the key news stories impacting Carnival this week:

• Positive Sentiment: Analysts remain constructive on Carnival alongside other consumer cyclical names, reinforcing the view that the cruise operator still has room to benefit from resilient leisure spending. Analysts Are Bullish on Top Consumer Cyclical Stocks: Carnival (CCL), AUTO1 Group SE (ATOGF)
• Positive Sentiment: Carnival’s Mediterranean expansion plans for Holland America and broader itinerary growth are being viewed as a sign of stronger booking opportunities and a deeper product offering. Carnival Stock Pops on Mediterranean Expansion Plans
• Positive Sentiment: Lower oil prices are helping cruise stocks, and Carnival is benefiting from easing fuel-cost pressure after geopolitical concerns around the Strait of Hormuz cooled. Carnival Stock Rises As Oil Prices Fall After MoU
• Positive Sentiment: Carnival and Starboard’s limited-edition Bulleit Bourbon launch across 14 ships adds an onboard revenue and branding initiative tied to America’s 250th anniversary. Carnival (CCL) Launches Limited Edition Bulleit Bourbon Across 14 Ships
• Neutral Sentiment: Several previews ahead of Carnival’s June 23 Q2 earnings note that expectations are centered on earnings stability and continued onboard spending strength, but investors are waiting for confirmation from results. Carnival Reports Q2 Earnings Next Week. What Investors Should Expect.
• Neutral Sentiment: Broader market commentary shows investors are favoring strong fundamentals and cyclicals, which is supportive for CCL but not specific to the company. The Unstoppable Stock Market Rally Is Defying Fed Fears

Insider Buying and Selling at Carnival

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 transaction 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 legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Sir Jonathon Band sold 11,988 shares of Carnival stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $26.19, for a total value of $313,965.72. Following the completion of the transaction, the director directly owned 52,601 shares in the company, valued at approximately $1,377,620.19. This represents a 18.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 55,058 shares of company stock worth $1,524,195. 7.90% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of brokerages recently commented on CCL. Wall Street Zen lowered Carnival from a "buy" rating to a "hold" rating in a research note on Saturday, March 28th. Loop Capital assumed coverage on Carnival in a research report on Monday, June 1st. They issued a "buy" rating and a $36.00 price target on the stock. Susquehanna reduced their price target on shares of Carnival from $40.00 to $30.00 and set a "positive" rating on the stock in a research report on Monday, March 23rd. Wells Fargo & Company decreased their price target on shares of Carnival from $37.00 to $36.00 and set an "overweight" rating for the company in a report on Wednesday, April 15th. Finally, Melius Research set a $36.00 price objective on Carnival in a research note on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Carnival currently has a consensus rating of "Moderate Buy" and a consensus target price of $34.94.

Carnival Company 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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