Stock Traders Buy High Volume of Carnival Call Options (NYSE:CCL)

Key Points

• Unusually heavy bullish options activity: Traders purchased 100,294 Carnival call options, more than double the average volume. Carnival shares rose 13.4% to $25.11 on unusually high trading volume.
• Strong quarterly performance and demand: Carnival beat revenue and EPS expectations, reporting $8.44 billion in revenue and $1.43 adjusted EPS, while record deposits and bookings indicated resilient future demand. The company raised its full-year 2026 EPS outlook to approximately $2.24.
• Risks remain despite a “Moderate Buy” consensus: Fourth-quarter EPS guidance came in below analyst expectations, while elevated fuel costs and Carnival’s substantial debt load could weigh on results and the stock’s rally.

Carnival Corporation (NYSE:CCL - Get Free Report) saw unusually large options trading on Tuesday. Stock traders bought 100,294 call options on the stock. This is an increase of approximately 103% compared to the average volume of 49,497 call options.

Carnival Stock Up 13.4%

Shares of CCL stock traded up $2.97 during trading hours on Tuesday, reaching $25.11. The company had a trading volume of 75,261,207 shares, compared to its average volume of 24,173,084. The company has a market capitalization of $34.39 billion, a P/E ratio of 11.31, a price-to-earnings-growth ratio of 1.06 and a beta of 2.31. The stock's fifty day simple moving average is $25.29 and its 200 day simple moving average is $26.32. Carnival has a twelve month low of $21.45 and a twelve month high of $34.03. The company has a debt-to-equity ratio of 1.80, a quick ratio of 0.29 and a current ratio of 0.33.

Carnival (NYSE:CCL - Get Free Report) last posted its earnings results on Tuesday, September 29th. The company reported $1.43 EPS for the quarter, topping analysts' consensus estimates of $1.35 by $0.08. Carnival had a net margin of 11.24% and a return on equity of 26.11%. The business had revenue of $8.44 billion for the quarter, compared to analysts' expectations of $8.39 billion. Carnival has set its Q4 2026 guidance at 0.200-0.200 EPS and its FY 2026 guidance at 2.240-2.240 EPS. As a group, sell-side analysts expect that Carnival will post 2.2 earnings per share for the current fiscal year.

Carnival Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 7th were paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 2.4%. The ex-dividend date was Friday, August 7th. Carnival's dividend payout ratio is 27.03%.

Analyst Upgrades and Downgrades

Several research firms have recently commented on CCL. Melius Research set a $36.00 price target on Carnival in a research note on Wednesday, June 17th. Weiss Ratings downgraded Carnival from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, September 10th. Truist Financial increased their price target on shares of Carnival from $29.00 to $31.00 and gave the company a "hold" rating in a research report on Thursday, July 23rd. Sanford C. Bernstein cut Carnival from a "market perform" rating to a "market perform" rating in a research report on Tuesday, June 23rd. Finally, Deutsche Bank Aktiengesellschaft set a $32.00 price target on Carnival in a report on Tuesday, September 22nd. One investment analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $34.45.

Key Carnival News

Here are the key news stories impacting Carnival this week:

• Positive Sentiment: Record quarter beats expectations: Carnival reported record revenue of approximately $8.44 billion and adjusted earnings of $1.43 per share, exceeding analyst estimates of $8.39 billion and $1.35 per share. Net income reached about $1.92 billion, while adjusted EBITDA was roughly $3.0 billion. Carnival Corporation earnings release
• Positive Sentiment: Demand remains resilient: Record customer deposits of about $7.6 billion, along with record 2027 booked occupancy, pricing and booking volumes, suggest strong forward demand. CEO Josh Weinstein said vacation demand is holding up despite broader economic concerns. Carnival reports record earnings and bookings
• Positive Sentiment: Full-year outlook improved: Carnival raised its 2026 adjusted diluted EPS outlook to approximately $2.24, slightly above consensus, and increased its full-year net-yield forecast. The company has also repurchased approximately $1.2 billion of stock year to date and paid a quarterly dividend. Carnival earnings and guidance update
• Neutral Sentiment: Fuel costs remain a headwind: Higher fuel expenses reduced gross-margin yields by about 1.3% year over year, although Carnival reduced fuel consumption by roughly 4%, helping offset some of the pressure. Cruise line outlook and fuel costs
• Negative Sentiment: Balance-sheet risk persists: Investors continue to monitor Carnival’s substantial debt load and refinancing needs, particularly as interest rates remain elevated. Strong profits will need to support debt reduction and fleet investment. Carnival debt and interest-rate risks
• Negative Sentiment: Near-term guidance was mixed: Carnival’s fourth-quarter EPS outlook of $0.20 was below the roughly $0.25 analyst consensus, creating a potential constraint on the stock’s rally despite the strong full-year outlook.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Manning & Napier Advisors LLC acquired a new position in Carnival in the second quarter worth $25,000. Basecamp Wealth Advisors LLC lifted its position in shares of Carnival by 107.8% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,045 shares of the company's stock worth $27,000 after buying an additional 542 shares during the last quarter. Axiom Investment Management LLC bought a new position in shares of Carnival in the 2nd quarter worth about $29,000. Ancora Advisors LLC acquired a new position in shares of Carnival in the 2nd quarter valued at about $29,000. Finally, Motiv8 Investments LLC acquired a new position in shares of Carnival in the 4th quarter valued at about $32,000. Institutional investors and hedge funds own 67.19% of the company's stock.

Carnival Company Profile

Carnival Corporation & plc NYSE: CCL is a global leisure travel company that operates cruise lines and related vacation businesses. Its brands offer ocean cruises, onboard entertainment, dining, accommodation, excursions and other travel experiences to passengers across a range of price points and destinations.

The company's portfolio includes Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, Cunard, P&O Cruises, P&O Cruises Australia, AIDA Cruises and Costa Cruises.

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