Primecap Management Co. CA Invests $669.80 Million in Royal Caribbean Cruises Ltd. $RCL

Key Points

• Primecap Management acquired 2.11 million Royal Caribbean shares worth approximately $669.8 million, representing about 0.79% of the company. Institutional investors collectively own 87.53% of RCL.
• Royal Caribbean exceeded quarterly expectations, reporting $4.21 EPS versus the $3.98 consensus and $4.83 billion in revenue, up 6.5% year over year. The company issued fiscal 2026 EPS guidance of $17.73–$17.87.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $353.40, although CEO Michael Bayley sold 12,811 shares in late July.

Primecap Management Co. CA bought a new stake in Royal Caribbean Cruises Ltd. (NYSE:RCL - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 2,109,421 shares of the company's stock, valued at approximately $669,804,000. Primecap Management Co. CA owned approximately 0.79% of Royal Caribbean Cruises as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently modified their holdings of RCL. Capital International Investors lifted its holdings in Royal Caribbean Cruises by 9.8% during the fourth quarter. Capital International Investors now owns 36,165,358 shares of the company's stock worth $10,088,156,000 after acquiring an additional 3,215,382 shares during the period. BlackRock Inc. purchased a new stake in shares of Royal Caribbean Cruises during the 2nd quarter valued at $6,549,422,000. Capital Research Global Investors raised its stake in shares of Royal Caribbean Cruises by 4.8% during the 4th quarter. Capital Research Global Investors now owns 20,176,544 shares of the company's stock worth $5,627,669,000 after purchasing an additional 920,042 shares during the period. State Street Corp boosted its holdings in shares of Royal Caribbean Cruises by 0.8% in the 3rd quarter. State Street Corp now owns 10,576,751 shares of the company's stock worth $3,433,052,000 after buying an additional 84,202 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in Royal Caribbean Cruises by 2.3% during the fourth quarter. Geode Capital Management LLC now owns 7,054,191 shares of the company's stock valued at $1,961,758,000 after buying an additional 155,491 shares during the period. 87.53% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, CEO Michael W. Bayley sold 12,811 shares of the company's stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $315.99, for a total transaction of $4,048,147.89. Following the sale, the chief executive officer directly owned 45,297 shares in the company, valued at $14,313,399.03. This represents a 22.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 6.44% of the stock is owned by insiders.

Royal Caribbean Cruises Stock Down 0.2%

Royal Caribbean Cruises stock opened at $292.48 on Wednesday. The firm has a 50 day simple moving average of $303.60 and a 200 day simple moving average of $290.94. The company has a current ratio of 0.21, a quick ratio of 0.19 and a debt-to-equity ratio of 2.03. Royal Caribbean Cruises Ltd. has a 1-year low of $232.10 and a 1-year high of $366.50. The firm has a market capitalization of $78.22 billion, a price-to-earnings ratio of 18.08, a P/E/G ratio of 1.00 and a beta of 1.77.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last posted its earnings results on Tuesday, July 28th. The company reported $4.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.98 by $0.23. The firm had revenue of $4.83 billion for the quarter, compared to the consensus estimate of $4.82 billion. Royal Caribbean Cruises had a return on equity of 43.33% and a net margin of 23.54%.The business's quarterly revenue was up 6.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $4.38 earnings per share. 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 predict that Royal Caribbean Cruises Ltd. will post 17.78 earnings per share for the current year.

Wall Street Analyst Weigh In

Several analysts have commented on RCL shares. Loop Capital began coverage on shares of Royal Caribbean Cruises in a research report on Monday, June 1st. They issued a "hold" rating and a $304.00 price objective on the stock. Citigroup lifted their price target on shares of Royal Caribbean Cruises from $327.00 to $362.00 and gave the stock a "buy" rating in a report on Wednesday, July 29th. UBS Group reissued a "buy" rating and set a $367.00 price objective on shares of Royal Caribbean Cruises in a report on Monday, August 3rd. Weiss Ratings restated a "buy (b-)" rating on shares of Royal Caribbean Cruises in a research note on Thursday, June 18th. Finally, Morgan Stanley upped their price target 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. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, Royal Caribbean Cruises presently has a consensus rating of "Moderate Buy" and a consensus target price of $353.40.

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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