Carnival (NYSE:CCL) Reaches New 12-Month Low - Time to Sell?

Key Points

• Carnival shares hit a new 52-week low, falling to $23.05 intraday and trading below their 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a “Moderate Buy” consensus with an average price target of $35.08, implying substantial upside from current levels.
• Carnival exceeded quarterly EPS expectations and reported 5.3% year-over-year revenue growth, while continuing to pay a quarterly dividend of $0.15 per share, yielding approximately 2.6%.

Carnival Corporation (NYSE:CCL - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $23.05 and last traded at $22.85, with a volume of 211805 shares. The stock had previously closed at $23.20.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. BMO Capital Markets initiated coverage on Carnival in a research report on Tuesday, July 7th. They issued a "market perform" rating and a $30.00 price target on the stock. Sanford C. Bernstein lowered shares of Carnival from a "market perform" rating to a "market perform" rating in a report on Tuesday, June 23rd. Stifel Nicolaus upped their price target on shares of Carnival from $35.00 to $36.00 and gave the stock a "buy" rating in a report on Friday, June 12th. Argus set a $35.00 price target on shares of Carnival in a research report on Friday, June 26th. Finally, Truist Financial boosted their price objective 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. One research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $35.08.

Carnival Stock Performance

The company has a debt-to-equity ratio of 1.80, a current ratio of 0.33 and a quick ratio of 0.29. The stock has a market cap of $31.34 billion, a P/E ratio of 10.33, a PEG ratio of 1.02 and a beta of 2.31. The stock has a 50-day simple moving average of $26.59 and a 200-day simple moving average of $27.04.

Carnival (NYSE:CCL - Get Free Report) last posted its earnings results on Tuesday, June 23rd. The company reported $0.41 EPS for the quarter, topping analysts' consensus estimates of $0.34 by $0.07. The firm had revenue of $6.66 billion during the quarter, compared to analysts' expectations of $6.69 billion. Carnival had a net margin of 11.24% and a return on equity of 26.11%. The business's revenue for the quarter was up 5.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.35 earnings per share. Carnival has set its FY 2026 guidance at 2.220-2.220 EPS and its Q3 2026 guidance at 1.350-1.350 EPS. Research analysts forecast that Carnival Corporation will post 2.23 earnings per share for the current year.

Carnival Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 7th were given a $0.15 dividend. The ex-dividend date was Friday, August 7th. This represents a $0.60 dividend on an annualized basis and a yield of 2.6%. Carnival's dividend payout ratio (DPR) is currently 27.03%.

Institutional Trading of Carnival

A number of hedge funds and other institutional investors have recently modified their holdings of CCL. Manning & Napier Advisors LLC bought a new stake in Carnival during the 2nd quarter worth $25,000. Measured Wealth Private Client Group LLC bought a new position in Carnival in the third quarter valued at about $25,000. Lloyd Advisory Services LLC. bought a new position in Carnival in the fourth quarter valued at about $26,000. Basecamp Wealth Advisors LLC boosted its stake in shares of Carnival by 107.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 1,045 shares of the company's stock valued at $27,000 after purchasing an additional 542 shares in the last quarter. Finally, Axiom Investment Management LLC acquired a new stake in shares of Carnival during the second quarter valued at about $29,000. Institutional investors own 67.19% of the company's stock.

About Carnival

Carnival Corporation NYSE: CCL is a global cruise operator that provides leisure travel services through a portfolio of passenger cruise brands. The company's core business is operating cruise ships that offer multi-night voyages and associated vacation services, including onboard accommodations, dining, entertainment, spa and wellness offerings, casinos, youth programs, and organized shore excursions. Carnival markets cruise vacations to a broad range of consumers, from value-focused travelers to premium and luxury segments, through differentiated brand positioning and onboard experiences.

Its operating structure comprises multiple well-known cruise brands that target distinct geographic and demographic markets.

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