QRG Capital Management Inc. Grows Stake in Royal Caribbean Cruises Ltd. $RCL

Key Points

• QRG Capital Management increased its Royal Caribbean stake by 12.2% in the second quarter, bringing its holdings to 66,915 shares worth approximately $21.25 million. Institutional investors collectively own 87.53% of RCL.
• Wall Street maintains a generally positive outlook, with an average rating of “Moderate Buy” and a consensus price target of $353.40. Analysts’ targets range from $300 to $415.
• Royal Caribbean exceeded quarterly earnings expectations, reporting $4.21 in EPS and $4.83 billion in revenue, while revenue rose 6.5% year over year. The company also declared a quarterly dividend of $1.50 per share, implying a 2.6% yield.

QRG Capital Management Inc. increased its holdings in Royal Caribbean Cruises Ltd. (NYSE:RCL - Free Report) by 12.2% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 66,915 shares of the company's stock after purchasing an additional 7,299 shares during the period. QRG Capital Management Inc.'s holdings in Royal Caribbean Cruises were worth $21,248,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. IMG Wealth Management Inc. purchased a new position in shares of Royal Caribbean Cruises in the first quarter worth $27,000. Main Street Group LTD bought a new stake in Royal Caribbean Cruises in the 1st quarter valued at $28,000. Monetary Solutions Ltd purchased a new stake in Royal Caribbean Cruises in the 4th quarter worth $29,000. Bell Investment Advisors Inc purchased a new stake in Royal Caribbean Cruises in the 2nd quarter worth $29,000. Finally, NBH Bank bought a new position in shares of Royal Caribbean Cruises during the 2nd quarter valued at about $29,000. 87.53% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

RCL has been the topic of a number of research analyst reports. Morgan Stanley boosted their target price on Royal Caribbean Cruises from $280.00 to $300.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Susquehanna lifted their price objective on Royal Caribbean Cruises from $350.00 to $372.00 and gave the stock a "positive" rating in a research note on Wednesday, July 29th. Sanford C. Bernstein reiterated an "outperform" rating on shares of Royal Caribbean Cruises in a research report on Wednesday. Zacks Research upgraded shares of Royal Caribbean Cruises from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 18th. Finally, Stifel Nicolaus upped their price target on shares of Royal Caribbean Cruises from $410.00 to $415.00 and gave the company a "buy" rating in a research note on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat.com, Royal Caribbean Cruises has an average rating of "Moderate Buy" and a consensus target price of $353.40.

Royal Caribbean Cruises Price Performance

Shares of Royal Caribbean Cruises stock opened at $230.09 on Thursday. The stock has a market cap of $61.54 billion, a price-to-earnings ratio of 14.22, a price-to-earnings-growth ratio of 0.84 and a beta of 1.74. The company has a debt-to-equity ratio of 2.03, a quick ratio of 0.19 and a current ratio of 0.21. The stock has a 50 day moving average price of $286.06 and a 200-day moving average price of $282.40. Royal Caribbean Cruises Ltd. has a one year low of $222.22 and a one year high of $356.39.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The company reported $4.21 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 last year, the company earned $4.38 earnings per share. Royal Caribbean Cruises's revenue was up 6.5% on a year-over-year basis. 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. Equities analysts expect that Royal Caribbean Cruises Ltd. will post 17.78 EPS for the current year.

Royal Caribbean Cruises Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Thursday, September 17th will be paid a dividend of $1.50 per share. The ex-dividend date of this dividend is Thursday, September 17th. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.6%. Royal Caribbean Cruises's payout ratio is currently 37.08%.

Insider Buying and Selling

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

More Royal Caribbean Cruises News

Here are the key news stories impacting Royal Caribbean Cruises this week:

• Positive Sentiment: The partnership expands RCL beyond ocean cruising into land-based, all-inclusive vacations, giving it access to Sandals’ affluent customer base and a broader Caribbean vacation portfolio. Management expects to combine Sandals’ resort expertise with Royal Caribbean’s cruise brands, private destinations and vacation platform. Royal Caribbean Group and Sandals Resorts partnership announcement
• Positive Sentiment: Truist reportedly views the acquisition as accretive to earnings in its first year, suggesting potential financial benefits from cross-selling cruises, resorts and other vacation experiences. BMO Capital Markets also reaffirmed its “outperform” rating and set a $370 price target.
• Neutral Sentiment: The transaction represents a major strategic shift for RCL and could diversify revenue across cruise and resort businesses, but the benefits will depend on successful integration, customer cross-selling and growth investment. Royal Caribbean acquires stake in Sandals
• Negative Sentiment: Investors appear concerned about the size and timing of the investment, particularly given RCL’s already elevated leverage. The $3 billion commitment raises questions about financing, returns and whether management is moving too far outside its core cruise business.
• Negative Sentiment: The market reaction indicates that near-term concerns about deal execution and valuation outweighed the longer-term diversification thesis. Analysts and commentators described the move as surprising, contributing to weakness in RCL and declines across other cruise stocks.

Royal Caribbean Cruises Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.