Royal Caribbean Cruises Sees Unusually High Options Volume (NYSE:RCL)

Key Points

• Put-option activity surged: Investors traded 26,614 put options in Royal Caribbean, about 227% above the typical volume of 8,142 contracts, signaling unusually high downside-hedging or bearish interest.
• Analyst sentiment remains broadly positive: The stock carries a “Moderate Buy” consensus rating and an average price target of $353.40, despite mixed actions including Truist’s target cut and Freedom Capital’s downgrade to “hold.”
• Shares fell 3% to $271.15: The decline followed quarterly results that exceeded earnings expectations, with $4.21 EPS versus a $3.98 consensus estimate and revenue of $4.83 billion.

Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) was the recipient of unusually large options trading on Monday. Stock investors bought 26,614 put options on the stock. This is an increase of approximately 227% compared to the typical volume of 8,142 put options.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on RCL. Truist Financial decreased their target price on shares of Royal Caribbean Cruises from $318.00 to $297.00 and set a "hold" rating on the stock in a research note on Friday, May 22nd. 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. BMO Capital Markets initiated coverage on Royal Caribbean Cruises in a research report on Tuesday, July 7th. They set an "outperform" rating and a $370.00 price objective on the stock. Freedom Capital cut Royal Caribbean Cruises from a "strong-buy" rating to a "hold" rating in a report on Wednesday, July 29th. Finally, William Blair reiterated an "outperform" rating on shares of Royal Caribbean Cruises in a research report on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, Royal Caribbean Cruises has a consensus rating of "Moderate Buy" and an average target price of $353.40.

Insider Activity

In related news, CEO Michael W. Bayley sold 12,811 shares of the company's stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $315.99, for a total transaction of $4,048,147.89. Following the completion of the transaction, 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 6.44% of the company's stock.

Hedge Funds Weigh In On Royal Caribbean Cruises

A number of hedge funds have recently made changes to their positions in the stock. Montag A & Associates Inc. raised its holdings in Royal Caribbean Cruises by 184.4% during the 4th quarter. Montag A & Associates Inc. now owns 91 shares of the company's stock worth $25,000 after purchasing an additional 59 shares during the last quarter. University of Texas Texas AM Investment Management Co. bought a new stake in shares of Royal Caribbean Cruises in the 4th quarter valued at $26,000. IMG Wealth Management Inc. acquired a new stake in shares of Royal Caribbean Cruises during the first quarter worth $27,000. Kemnay Advisory Services Inc. acquired a new stake in shares of Royal Caribbean Cruises during the fourth quarter worth $27,000. Finally, Quattro Advisors LLC bought a new position in Royal Caribbean Cruises during the fourth quarter worth $27,000. 87.53% of the stock is currently owned by institutional investors.

Royal Caribbean Cruises Trading Down 3.0%

Shares of RCL stock traded down $8.26 during trading hours on Monday, hitting $271.15. 550,917 shares of the company's stock traded hands, compared to its average volume of 2,494,043. The stock's 50 day simple moving average is $302.18 and its 200 day simple moving average is $289.77. The stock has a market cap of $72.52 billion, a PE ratio of 16.76, a price-to-earnings-growth ratio of 0.95 and a beta of 1.77. Royal Caribbean Cruises has a 12 month low of $232.10 and a 12 month high of $366.50. 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 quarterly earnings data on Tuesday, July 28th. The company reported $4.21 earnings per share for the quarter, topping the consensus estimate of $3.98 by $0.23. The company had revenue of $4.83 billion for the quarter, compared to analysts' expectations of $4.82 billion. Royal Caribbean Cruises had a net margin of 23.54% and a return on equity of 43.33%. Royal Caribbean Cruises's revenue for the quarter was up 6.5% on a year-over-year basis. During the same quarter in the previous year, the firm 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, sell-side analysts anticipate that Royal Caribbean Cruises will post 17.78 EPS for the current year.

Royal Caribbean Cruises Company Profile

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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