Stock Traders Purchase Large Volume of Norwegian Cruise Line Call Options (NYSE:NCLH)

Key Points

• Unusual options activity: Traders purchased 44,435 NCLH call options, 71% above the typical volume of 26,007 contracts.
• Institutional ownership remains high: Several major funds increased their positions, while institutional investors collectively own 69.58% of Norwegian Cruise Line’s stock.
• Analysts remain cautious: The stock carries an average “Hold” rating with a $20.50 price target. Shares rose 3.5% to $14.81 but remain below their 50-day and 200-day moving averages.

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH - Get Free Report) saw some unusual options trading on Tuesday. Stock traders bought 44,435 call options on the stock. This represents an increase of 71% compared to the typical volume of 26,007 call options.

Institutional Investors Weigh In On Norwegian Cruise Line

Several hedge funds have recently bought and sold shares of NCLH. Capital International Investors boosted its stake in Norwegian Cruise Line by 7.1% in the 4th quarter. Capital International Investors now owns 56,177,669 shares of the company's stock worth $1,253,886,000 after purchasing an additional 3,728,929 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Norwegian Cruise Line by 2.2% during the fourth quarter. Geode Capital Management LLC now owns 12,205,008 shares of the company's stock valued at $271,951,000 after buying an additional 262,086 shares during the last quarter. Elliott Investment Management L.P. purchased a new position in Norwegian Cruise Line in the 1st quarter worth approximately $246,578,000. Dimensional Fund Advisors LP lifted its position in Norwegian Cruise Line by 7.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 7,262,590 shares of the company's stock valued at $135,776,000 after acquiring an additional 518,790 shares in the last quarter. Finally, Hound Partners LLC boosted its stake in Norwegian Cruise Line by 50.0% during the 1st quarter. Hound Partners LLC now owns 5,713,090 shares of the company's stock valued at $106,835,000 after purchasing an additional 1,905,203 shares during the last quarter. Institutional investors own 69.58% of the company's stock.

Analyst Ratings Changes

Several brokerages have recently commented on NCLH. Susquehanna reaffirmed a "neutral" rating and issued a $17.00 target price on shares of Norwegian Cruise Line in a research report on Tuesday, August 4th. Jefferies Financial Group upped their price objective on Norwegian Cruise Line from $16.00 to $18.00 and gave the stock a "hold" rating in a report on Friday, July 17th. BMO Capital Markets assumed coverage on Norwegian Cruise Line in a research report on Tuesday, July 7th. They set a "market perform" rating and a $21.00 target price for the company. Morgan Stanley raised their price target on Norwegian Cruise Line from $20.00 to $22.00 and gave the company an "equal weight" rating in a report on Thursday, July 9th. Finally, Loop Capital initiated coverage on shares of Norwegian Cruise Line in a research report on Monday, June 1st. They set a "buy" rating and a $22.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $20.50.

Norwegian Cruise Line Trading Up 3.5%

Shares of NCLH stock traded up $0.50 during mid-day trading on Tuesday, hitting $14.81. The company's stock had a trading volume of 26,944,707 shares, compared to its average volume of 19,972,332. The company has a market cap of $6.80 billion, a PE ratio of 9.26, a P/E/G ratio of 0.83 and a beta of 1.88. The company has a debt-to-equity ratio of 5.40, a quick ratio of 0.17 and a current ratio of 0.20. The company's fifty day simple moving average is $17.06 and its 200-day simple moving average is $18.28. Norwegian Cruise Line has a 52 week low of $13.63 and a 52 week high of $25.24.

Norwegian Cruise Line (NYSE:NCLH - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.48 earnings per share for the quarter, topping analysts' consensus estimates of $0.41 by $0.07. Norwegian Cruise Line had a net margin of 7.49% and a return on equity of 41.38%. The company had revenue of $2.64 billion for the quarter, compared to the consensus estimate of $2.65 billion. During the same period in the previous year, the firm earned $0.51 EPS. The firm's quarterly revenue was up 4.9% on a year-over-year basis. Norwegian Cruise Line has set its Q3 2026 guidance at 0.900-0.900 EPS and its FY 2026 guidance at 1.500-1.500 EPS. As a group, equities research analysts expect that Norwegian Cruise Line will post 1.37 earnings per share for the current fiscal year.

About Norwegian Cruise Line

Norwegian Cruise Line Holdings Ltd. is a global cruise company headquartered in Miami, Florida. Through its three brands—Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises—the company offers ocean voyages to destinations around the world, including the Caribbean, Alaska, Europe, Asia, South America, Australia and New Zealand, and expedition regions.

Norwegian Cruise Line serves the contemporary and premium cruise markets and is known for its “Freestyle Cruising” approach, which emphasizes flexible dining and relaxed onboard experiences.

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