Royal Caribbean Cruises (NYSE:RCL) Shares Up 4.6% Following Analyst Upgrade

Key Points

• Royal Caribbean shares rose 4.6% after JPMorgan raised its price target from $345 to $394 and maintained an overweight rating. Analysts overall rate the stock “Moderate Buy,” with an average price target of $356.10.
• The company is expanding beyond cruises with a planned $3 billion investment for a 50% stake in Sandals and Beaches Resorts, creating a joint venture valued at approximately $6 billion and broadening its all-inclusive vacation offerings.
• Royal Caribbean reported quarterly EPS of $4.21, ahead of the $3.98 consensus estimate, and raised its 2026 earnings outlook. It also declared a quarterly dividend of $1.50 per share, equivalent to a 2.5% annualized yield.

Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) shares were up 4.6% on Thursday after JPMorgan Chase & Co. raised their price target on the stock from $345.00 to $394.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Royal Caribbean Cruises traded as high as $239.08 and last traded at $240.9820. 1,781,791 shares traded hands during trading, a decline of 30% from the average session volume of 2,535,162 shares. The stock had previously closed at $230.30.

Other analysts have also recently issued research reports about the stock. Morgan Stanley upped their target price on shares of Royal Caribbean Cruises from $280.00 to $300.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. UBS Group reaffirmed a "buy" rating on shares of Royal Caribbean Cruises in a report on Wednesday. Susquehanna upped their price objective on Royal Caribbean Cruises from $350.00 to $372.00 and gave the company a "positive" rating in a research note on Wednesday, July 29th. Zacks Research raised Royal Caribbean Cruises from a "strong sell" rating to a "hold" rating in a report on Thursday, June 18th. Finally, Wells Fargo & Company raised their target price on Royal Caribbean Cruises from $361.00 to $388.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat.com, Royal Caribbean Cruises has an average rating of "Moderate Buy" and an average price target of $356.10.

Insider Buying and Selling

In other Royal Caribbean Cruises news, CEO Michael Bayley sold 12,811 shares of the business's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $315.99, for a total value of $4,048,147.89. Following the transaction, the chief executive officer directly owned 45,297 shares in the company, valued at $14,313,399.03. The trade was a 22.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 6.44% of the stock is currently owned by company insiders.

Royal Caribbean Cruises News Roundup

Here are the key news stories impacting Royal Caribbean Cruises this week:

• Positive Sentiment: Royal Caribbean agreed to invest approximately $3 billion for a 50% stake in Sandals and Beaches Resorts, creating a joint venture valued at about $6 billion. The partnership broadens RCL beyond cruises into all-inclusive Caribbean vacations and could provide access to wealthier customers and additional cross-selling opportunities. The transaction is expected to close in early 2027. Reuters article
• Positive Sentiment: Truist reportedly views the Sandals transaction as accretive in its first year, while BMO reaffirmed its “outperform” rating and maintained a $370 price target, implying substantial upside from current levels. Truist analysis
• Positive Sentiment: The company raised its 2026 earnings outlook and expects adjusted earnings per share to grow roughly 14%, indicating that demand remains resilient despite the stock’s decline over the past year. Trefis analysis

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Kestra Investment Management LLC boosted its stake in Royal Caribbean Cruises by 2.6% in the 4th quarter. Kestra Investment Management LLC now owns 1,208 shares of the company's stock valued at $337,000 after purchasing an additional 31 shares during the period. Waterloo Capital L.P. lifted its holdings in shares of Royal Caribbean Cruises by 2.9% during the fourth quarter. Waterloo Capital L.P. now owns 1,191 shares of the company's stock worth $332,000 after buying an additional 34 shares in the last quarter. REAP Financial Group LLC lifted its holdings in shares of Royal Caribbean Cruises by 16.8% during the fourth quarter. REAP Financial Group LLC now owns 243 shares of the company's stock worth $68,000 after buying an additional 35 shares in the last quarter. Global Financial Private Client LLC boosted its position in shares of Royal Caribbean Cruises by 1.6% in the first quarter. Global Financial Private Client LLC now owns 2,343 shares of the company's stock valued at $645,000 after acquiring an additional 38 shares during the period. Finally, D.A. Davidson & CO. boosted its position in shares of Royal Caribbean Cruises by 1.5% in the second quarter. D.A. Davidson & CO. now owns 2,647 shares of the company's stock valued at $841,000 after acquiring an additional 40 shares during the period. Institutional investors own 87.53% of the company's stock.

Royal Caribbean Cruises Price Performance

The company has a quick ratio of 0.19, a current ratio of 0.21 and a debt-to-equity ratio of 2.03. The company's 50 day moving average is $286.06 and its 200 day moving average is $282.40. The firm has a market capitalization of $64.42 billion, a price-to-earnings ratio of 14.91, a P/E/G ratio of 0.84 and a beta of 1.74.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The company reported $4.21 earnings per share for the quarter, topping the consensus estimate of $3.98 by $0.23. The business had revenue of $4.83 billion during the quarter, compared to analysts' expectations 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 quarter in the previous year, the company earned $4.38 EPS. 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 research 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 business also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Thursday, September 17th will be paid a $1.50 dividend. This represents a $6.00 annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Thursday, September 17th. Royal Caribbean Cruises's payout ratio is 37.08%.

About Royal Caribbean Cruises

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.