Royal Caribbean Cruises (NYSE:RCL) Trading Down 5.4% - Here's Why

Key Points

• Royal Caribbean shares fell 5.4% to about $236.67, trading below both their 50-day and 200-day moving averages.
• Analyst sentiment remained broadly positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $353.40, despite some recent downgrades.
• The company exceeded quarterly earnings expectations, reporting $4.21 in EPS and $4.83 billion in revenue, while declaring a quarterly dividend of $1.50 per share, equivalent to a 2.5% yield.

Shares of Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) fell 5.4% during trading on Tuesday . The stock traded as low as $240.00 and last traded at $236.6730. Approximately 2,318,658 shares were traded during trading, a decline of 6% from the average daily volume of 2,474,548 shares. The stock had previously closed at $250.25.

Analyst Upgrades and Downgrades

RCL has been the subject of several recent analyst reports. UBS Group reissued a "buy" rating and set a $367.00 target price on shares of Royal Caribbean Cruises in a research note on Monday, August 3rd. Freedom Capital downgraded Royal Caribbean Cruises from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, July 29th. Weiss Ratings lowered shares of Royal Caribbean Cruises from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, September 3rd. William Blair reaffirmed an "outperform" rating on shares of Royal Caribbean Cruises in a research note on Tuesday, July 28th. Finally, Susquehanna boosted their price target on shares of Royal Caribbean Cruises from $350.00 to $372.00 and gave the company a "positive" rating in a research note on Wednesday, July 29th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $353.40.

Royal Caribbean Cruises Stock Down 5.4%

The company has a debt-to-equity ratio of 2.03, a current ratio of 0.21 and a quick ratio of 0.19. The company has a market cap of $63.30 billion, a PE ratio of 14.69, a P/E/G ratio of 0.88 and a beta of 1.74. The business's 50 day moving average is $288.26 and its 200-day moving average is $283.13.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The company reported $4.21 EPS for the quarter, beating analysts' consensus estimates of $3.98 by $0.23. The company had revenue of $4.83 billion for the quarter, compared to the consensus estimate of $4.82 billion. Royal Caribbean Cruises had a net margin of 23.54% and a return on equity of 43.33%. The company's quarterly revenue was up 6.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $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. As a group, analysts predict that Royal Caribbean Cruises Ltd. will post 17.78 EPS for the current year.

Royal Caribbean Cruises Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th will be issued 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 payout ratio is 37.08%.

Insider Activity

In other news, CEO Michael Bayley sold 12,811 shares of the stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $315.99, for a total value of $4,048,147.89. Following the transaction, the chief executive officer owned 45,297 shares in the company, valued at approximately $14,313,399.03. This represents a 22.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 6.44% of the company's stock.

Hedge Funds Weigh In On Royal Caribbean Cruises

Several hedge funds have recently added to or reduced their stakes in RCL. Kestra Investment Management LLC boosted its stake in Royal Caribbean Cruises by 2.6% during the fourth quarter. Kestra Investment Management LLC now owns 1,208 shares of the company's stock valued at $337,000 after buying an additional 31 shares during the period. Waterloo Capital L.P. increased its stake in Royal Caribbean Cruises by 2.9% in the 4th quarter. Waterloo Capital L.P. now owns 1,191 shares of the company's stock worth $332,000 after acquiring an additional 34 shares during the last quarter. REAP Financial Group LLC increased its stake in Royal Caribbean Cruises by 16.8% in the 4th quarter. REAP Financial Group LLC now owns 243 shares of the company's stock worth $68,000 after acquiring an additional 35 shares during the last quarter. Global Financial Private Client LLC raised its holdings in shares of Royal Caribbean Cruises by 1.6% in the 1st 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 in the last quarter. Finally, Wiser Advisor Group LLC boosted its position in shares of Royal Caribbean Cruises by 1.8% during the 4th quarter. Wiser Advisor Group LLC now owns 2,235 shares of the company's stock valued at $623,000 after acquiring an additional 40 shares during the last quarter. 87.53% of the stock is currently owned by hedge funds and other institutional investors.

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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