Federated Hermes Inc. Cuts Stock Holdings in Royal Caribbean Cruises Ltd. (NYSE:RCL)

Key Points

• Federated Hermes Inc. reduced its stake in Royal Caribbean Cruises Ltd. by 43.8%, selling 142,485 shares, and now holds about 182,630 shares worth approximately $37.52 million.
• Director Richard D. Fain sold 19,600 shares of Royal Caribbean, representing a 10.59% decrease in his position, for a total of nearly $4.96 million.
• The company recently reported quarterly earnings of $4.38 per share, exceeding analysts' expectations, with a year-over-year revenue increase of 10.4% to $4.54 billion.

Federated Hermes Inc. reduced its position in Royal Caribbean Cruises Ltd. (NYSE:RCL - Free Report) by 43.8% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 182,630 shares of the company's stock after selling 142,485 shares during the period. Federated Hermes Inc. owned 0.07% of Royal Caribbean Cruises worth $37,520,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in RCL. Financial Gravity Asset Management Inc. purchased a new stake in shares of Royal Caribbean Cruises in the first quarter worth about $25,000. Hughes Financial Services LLC purchased a new stake in shares of Royal Caribbean Cruises in the first quarter worth about $26,000. Brown Brothers Harriman & Co. lifted its position in shares of Royal Caribbean Cruises by 618.8% in the fourth quarter. Brown Brothers Harriman & Co. now owns 115 shares of the company's stock worth $27,000 after buying an additional 99 shares in the last quarter. Optimum Investment Advisors purchased a new stake in shares of Royal Caribbean Cruises in the first quarter worth about $31,000. Finally, Fourth Dimension Wealth LLC purchased a new stake in shares of Royal Caribbean Cruises in the fourth quarter worth about $35,000. 87.53% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Royal Caribbean Cruises

In other Royal Caribbean Cruises news, CAO Henry L. Pujol sold 5,207 shares of Royal Caribbean Cruises stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $329.47, for a total transaction of $1,715,550.29. Following the completion of the transaction, the chief accounting officer owned 7,826 shares in the company, valued at approximately $2,578,432.22. This trade represents a 39.95% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Richard D. Fain sold 19,600 shares of Royal Caribbean Cruises stock in a transaction dated Monday, May 19th. The shares were sold at an average price of $253.10, for a total value of $4,960,760.00. Following the transaction, the director owned 165,421 shares of the company's stock, valued at $41,868,055.10. The trade was a 10.59% decrease in their position. The disclosure for this sale can be found here. Insiders own 6.95% of the company's stock.

Royal Caribbean Cruises Trading Down 1.2%

NYSE:RCL traded down $3.75 during midday trading on Friday, hitting $314.12. The stock had a trading volume of 2,827,375 shares, compared to its average volume of 2,165,557. Royal Caribbean Cruises Ltd. has a one year low of $130.08 and a one year high of $355.91. The company has a market capitalization of $85.32 billion, a price-to-earnings ratio of 23.55, a PEG ratio of 0.89 and a beta of 2.22. The stock has a 50-day moving average of $302.63 and a 200 day moving average of $253.80. The company has a quick ratio of 0.15, a current ratio of 0.23 and a debt-to-equity ratio of 1.88.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The company reported $4.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.04 by $0.34. Royal Caribbean Cruises had a return on equity of 47.15% and a net margin of 20.97%. The business had revenue of $4.54 billion for the quarter, compared to the consensus estimate of $4.54 billion. During the same period last year, the business posted $3.21 EPS. The business's revenue was up 10.4% compared to the same quarter last year. As a group, sell-side analysts forecast that Royal Caribbean Cruises Ltd. will post 14.9 EPS for the current year.

Royal Caribbean Cruises Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, July 3rd. Shareholders of record on Wednesday, June 4th were given a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a yield of 1.0%. Royal Caribbean Cruises's dividend payout ratio is currently 22.49%.

Analyst Upgrades and Downgrades

A number of research firms recently commented on RCL. Macquarie decreased their target price on Royal Caribbean Cruises from $300.00 to $265.00 and set an "outperform" rating on the stock in a research report on Friday, May 9th. Barclays raised their price objective on Royal Caribbean Cruises from $263.00 to $358.00 and gave the company an "overweight" rating in a research note on Wednesday, July 9th. JPMorgan Chase & Co. boosted their target price on Royal Caribbean Cruises from $302.00 to $367.00 and gave the company an "overweight" rating in a research report on Wednesday. TD Cowen initiated coverage on Royal Caribbean Cruises in a report on Tuesday, July 22nd. They set a "buy" rating and a $405.00 price target on the stock. Finally, Melius Research upgraded Royal Caribbean Cruises to a "strong-buy" rating in a report on Monday, April 21st. Five equities research analysts have rated the stock with a hold rating, eighteen have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, Royal Caribbean Cruises currently has a consensus rating of "Moderate Buy" and an average price target of $321.10.

Royal Caribbean Cruises Profile

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.