Engineers Gate Manager LP Trims Position in Royal Caribbean Cruises Ltd. $RCL

Key Points

• Engineers Gate Manager LP cut its Royal Caribbean stake by 97.8% in the second quarter, selling 34,111 shares and retaining 775 shares worth approximately $246,000. Institutional investors still own 87.53% of RCL.
• Analysts remain generally bullish, with a consensus “Moderate Buy” rating and an average price target of $356.10; Stifel raised its target to $415, while Morgan Stanley lifted its target to $300 but maintained an “equal weight” rating.
• Royal Caribbean reported quarterly EPS of $4.21, exceeding estimates, and revenue of $4.83 billion, up 6.5% year over year. The company also declared a $1.50 quarterly dividend, equivalent to a 2.5% yield, though leverage and risks surrounding its planned $3 billion Sandals investment remain key concerns.

Engineers Gate Manager LP trimmed its holdings in Royal Caribbean Cruises Ltd. (NYSE:RCL - Free Report) by 97.8% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 775 shares of the company's stock after selling 34,111 shares during the period. Engineers Gate Manager LP's holdings in Royal Caribbean Cruises were worth $246,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently modified their holdings of RCL. Bell Investment Advisors Inc acquired a new stake in shares of Royal Caribbean Cruises in the second quarter valued at approximately $29,000. NBH Bank acquired a new position in Royal Caribbean Cruises during the second quarter worth $29,000. Cape Investment Advisory Inc. acquired a new position in Royal Caribbean Cruises during the second quarter worth $30,000. Ancora Advisors LLC bought a new position in Royal Caribbean Cruises in the second quarter valued at $31,000. Finally, IMG Wealth Management Inc. bought a new position in Royal Caribbean Cruises in the first quarter valued at $27,000. 87.53% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities research analysts have issued reports on RCL shares. UBS Group reiterated a "buy" rating on shares of Royal Caribbean Cruises in a research note on Wednesday. William Blair restated an "outperform" rating on shares of Royal Caribbean Cruises in a report on Tuesday, July 28th. Stifel Nicolaus raised their price objective on Royal Caribbean Cruises from $410.00 to $415.00 and gave the company a "buy" rating in a report on Wednesday, July 29th. Morgan Stanley lifted their target price on Royal Caribbean Cruises from $280.00 to $300.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Finally, BMO Capital Markets reiterated an "outperform" rating and set a $370.00 target price on shares of Royal Caribbean Cruises in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, Royal Caribbean Cruises has a consensus rating of "Moderate Buy" and a consensus target price of $356.10.

Royal Caribbean Cruises Price Performance

NYSE:RCL opened at $243.57 on Friday. Royal Caribbean Cruises Ltd. has a 12-month low of $222.22 and a 12-month high of $356.39. The firm has a market capitalization of $65.14 billion, a price-to-earnings ratio of 15.05, a P/E/G ratio of 0.80 and a beta of 1.74. The stock's 50 day moving average price is $284.09 and its two-hundred day moving average price is $281.85. The company has a quick ratio of 0.19, a current ratio of 0.21 and a debt-to-equity ratio of 2.03.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last issued its earnings results on Tuesday, July 28th. The company reported $4.21 EPS for the quarter, topping 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 company had revenue of $4.83 billion during the quarter, compared to the consensus estimate of $4.82 billion. During the same period in the previous year, the company posted $4.38 EPS. The firm's revenue for the quarter was up 6.5% compared to the same quarter last year. 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. On average, analysts anticipate that Royal Caribbean Cruises Ltd. will post 17.78 earnings per share for the current year.

Royal Caribbean Cruises Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders 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 dividend yield of 2.5%. The ex-dividend date is Thursday, September 17th. Royal Caribbean Cruises's payout ratio is currently 37.08%.

Insider Activity at Royal Caribbean Cruises

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

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?

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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