Traders Buy High Volume of Royal Caribbean Cruises Put Options (NYSE:RCL)

Key Points

• Royal Caribbean saw unusually heavy bearish options activity: Traders purchased 14,668 put options, about 90% above the typical daily volume.
• Despite the options activity, analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $357.45.
• The stock fell 1.0% to $279.59, while the company reported quarterly earnings and revenue above expectations and announced a quarterly dividend of $1.50 per share.

Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) was the target of unusually large options trading on Thursday. Stock traders bought 14,668 put options on the company. This represents an increase of 90% compared to the typical daily volume of 7,708 put options.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the company. Zacks Research upgraded Royal Caribbean Cruises from a "strong sell" rating to a "hold" rating in a report on Thursday, June 18th. BMO Capital Markets reaffirmed an "outperform" rating and issued a $370.00 price target on shares of Royal Caribbean Cruises in a report on Wednesday, September 23rd. Deutsche Bank Aktiengesellschaft upgraded shares of Royal Caribbean Cruises from a "hold" rating to a "buy" rating and upped their price target for the stock from $299.00 to $330.00 in a research report on Monday, September 28th. Susquehanna raised their price objective on shares of Royal Caribbean Cruises from $350.00 to $372.00 and gave the company a "positive" rating in a research report on Wednesday, July 29th. Finally, Citigroup reaffirmed a "buy" rating on shares of Royal Caribbean Cruises in a report on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $357.45.

Royal Caribbean Cruises Trading Down 1.0%

NYSE RCL traded down $2.73 on Thursday, hitting $279.59. 627,959 shares of the stock were exchanged, compared to its average volume of 2,576,365. The company has a debt-to-equity ratio of 2.03, a quick ratio of 0.19 and a current ratio of 0.21. Royal Caribbean Cruises has a 52-week low of $222.22 and a 52-week high of $356.39. The firm has a market capitalization of $74.78 billion, a P/E ratio of 17.26, a P/E/G ratio of 1.02 and a beta of 1.82. The stock has a fifty day moving average price of $279.60 and a two-hundred day moving average price of $281.47.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last issued its earnings results on Tuesday, July 28th. The company reported $4.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.98 by $0.23. The firm had revenue of $4.83 billion during the quarter, compared to analyst estimates of $4.82 billion. Royal Caribbean Cruises had a net margin of 23.54% and a return on equity of 43.33%. The business's revenue was up 6.5% on a year-over-year basis. During the same period in the previous year, the firm earned $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. Research analysts forecast that Royal Caribbean Cruises will post 17.79 EPS for the current fiscal year.

Royal Caribbean Cruises Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Thursday, September 17th will be given a dividend of $1.50 per share. The ex-dividend date is Thursday, September 17th. This represents a $6.00 dividend on an annualized basis and a yield of 2.1%. 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 firm's stock in a transaction on 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 completion of the sale, the chief executive officer directly owned 45,297 shares of the company's stock, valued at $14,313,399.03. This trade represents a 22.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 6.44% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Royal Caribbean Cruises

A number of institutional investors have recently modified their holdings of RCL. Bank of America Corp DE acquired a new position in Royal Caribbean Cruises during the second quarter worth about $321,332,000. Proficio Capital Partners LLC purchased a new position in Royal Caribbean Cruises in the 2nd quarter worth approximately $650,000. State of Michigan Retirement System acquired a new position in shares of Royal Caribbean Cruises during the 1st quarter worth approximately $18,080,000. Quantitative Investment Management LLC acquired a new position in shares of Royal Caribbean Cruises during the 2nd quarter worth approximately $3,586,000. Finally, Elevation Point Wealth Partners LLC grew its position in shares of Royal Caribbean Cruises by 28.3% in the first quarter. Elevation Point Wealth Partners LLC now owns 19,579 shares of the company's stock valued at $5,415,000 after purchasing an additional 4,315 shares in the last quarter. Hedge funds and other institutional investors own 87.53% of the company's stock.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd., now known as Royal Caribbean Group, is a global cruise company that operates vacation experiences through a portfolio of cruise brands. Its principal brands include Royal Caribbean International, Celebrity Cruises and Silversea Cruises, each serving different segments of the leisure travel market, from family-oriented cruises and large-scale resort-style ships to premium and luxury expedition voyages.

The company offers cruises to destinations around the world, including the Caribbean, Europe, Alaska, Asia, Australia, New Zealand and other international regions.

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