Royal Caribbean Cruises (NYSE:RCL) Reaches New 52-Week Low - Should You Sell?

Key Points

• Royal Caribbean shares hit a new 52-week low, trading as low as $231.03 compared with the prior close of $250.25, and remained below both their 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a “Moderate Buy” consensus with an average price target of $353.40, well above the recent trading level.
• The company exceeded quarterly earnings expectations with $4.21 in EPS and $4.83 billion in revenue, while announcing a $1.50 quarterly dividend, equivalent to a 2.5% annualized yield.

Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) reached a new 52-week low on Wednesday . The stock traded as low as $231.03 and last traded at $235.4510, with a volume of 8351553 shares changing hands. The stock had previously closed at $250.25.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on RCL shares. Zacks Research upgraded Royal Caribbean Cruises from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 18th. Loop Capital began coverage on Royal Caribbean Cruises in a research note on Monday, June 1st. They set a "hold" rating and a $304.00 price target on the stock. TD Cowen upgraded Royal Caribbean Cruises to a "strong-buy" rating in a report on Tuesday, September 8th. Citigroup upped their price objective on Royal Caribbean Cruises from $327.00 to $362.00 and gave the company a "buy" rating in a research note on Wednesday, July 29th. Finally, Stifel Nicolaus raised their price objective on shares of Royal Caribbean Cruises from $410.00 to $415.00 and gave the company a "buy" rating in a report on Wednesday, July 29th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, Royal Caribbean Cruises currently has an average rating of "Moderate Buy" and a consensus target price of $353.40.

Royal Caribbean Cruises Stock Performance

The firm has a market capitalization of $62.97 billion, a P/E ratio of 14.55, a price-to-earnings-growth ratio of 0.90 and a beta of 1.74. The company has a current ratio of 0.21, a quick ratio of 0.19 and a debt-to-equity ratio of 2.03. The company has a 50-day moving average of $287.32 and a 200-day moving average of $282.77.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The company reported $4.21 EPS for the quarter, beating analysts' consensus estimates of $3.98 by $0.23. Royal Caribbean Cruises had a return on equity of 43.33% and a net margin of 23.54%.The firm had revenue of $4.83 billion for the quarter, compared to analyst estimates of $4.82 billion. During the same quarter in the previous year, the company posted $4.38 EPS. The business's revenue was up 6.5% on a year-over-year basis. 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, equities analysts anticipate that Royal Caribbean Cruises Ltd. will post 17.78 earnings per share for the current fiscal year.

Royal Caribbean Cruises Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th will be given a dividend of $1.50 per share. This represents a $6.00 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Thursday, September 17th. Royal Caribbean Cruises's dividend payout ratio is currently 37.08%.

Insider Transactions at Royal Caribbean Cruises

In other Royal Caribbean Cruises news, CEO Michael Bayley sold 12,811 shares of the firm'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 owned 45,297 shares in the company, valued at approximately $14,313,399.03. This trade represents a 22.05% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 6.44% of the company's stock.

Institutional Investors Weigh In On Royal Caribbean Cruises

Several large investors have recently modified their holdings of RCL. IMG Wealth Management Inc. purchased a new stake in shares of Royal Caribbean Cruises in the first quarter worth about $27,000. Main Street Group LTD purchased a new position in Royal Caribbean Cruises during the first quarter valued at approximately $28,000. Monetary Solutions Ltd bought a new stake in Royal Caribbean Cruises during the 4th quarter worth approximately $29,000. Bell Investment Advisors Inc bought a new stake in Royal Caribbean Cruises during the 2nd quarter worth approximately $29,000. Finally, NBH Bank purchased a new stake in Royal Caribbean Cruises in the 2nd quarter worth approximately $29,000. 87.53% of the stock is currently owned by institutional investors and hedge funds.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd., now operating as Royal Caribbean Group, is a global cruise vacation company headquartered in Miami, Florida. The company provides cruise vacations and related travel experiences through a fleet of ocean-going ships serving destinations across the Caribbean, Europe, Alaska, Asia, Australia and New Zealand, and other regions.

Royal Caribbean Group's principal brands include Royal Caribbean International, Celebrity Cruises and Silversea. Royal Caribbean International focuses on large-ship vacations featuring entertainment, dining, family activities and onboard attractions; Celebrity Cruises offers premium cruises; and Silversea specializes in luxury and expedition voyages.

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