Royal Caribbean Cruises Ltd. (NYSE:RCL) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Royal Caribbean Cruises has received a consensus recommendation of "Moderate Buy" from 23 analysts, with a price target average of $327.14 over the next twelve months.
• The company reported $4.38 EPS for the last quarter, exceeding consensus estimates by $0.34, with a year-over-year revenue increase of 10.4%.
• Royal Caribbean recently raised its quarterly dividend from $0.75 to $1.00 per share, representing a 1.2% dividend yield and a payout ratio of 22.49%.

Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the twenty-three analysts that are currently covering the firm, Marketbeat.com reports. Four equities research analysts have rated the stock with a hold recommendation, eighteen have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $327.1429.

A number of analysts recently commented on RCL shares. Loop Capital reiterated a "buy" rating and issued a $290.00 price objective (up from $250.00) on shares of Royal Caribbean Cruises in a research report on Tuesday, June 3rd. Susquehanna restated a "positive" rating and set a $385.00 target price (up from $275.00) on shares of Royal Caribbean Cruises in a research report on Wednesday, July 30th. Stifel Nicolaus boosted their target price on Royal Caribbean Cruises from $400.00 to $420.00 and gave the stock a "buy" rating in a research report on Wednesday, July 30th. Tigress Financial boosted their target price on Royal Caribbean Cruises from $330.00 to $415.00 and gave the stock a "buy" rating in a research report on Thursday, August 21st. Finally, Wall Street Zen lowered Royal Caribbean Cruises from a "buy" rating to a "hold" rating in a research report on Saturday, June 28th.

Royal Caribbean Cruises Price Performance

Shares of RCL stock opened at $330.01 on Tuesday. The stock has a 50-day moving average price of $337.09 and a 200 day moving average price of $271.93. The company has a quick ratio of 0.21, a current ratio of 0.23 and a debt-to-equity ratio of 1.88. The firm has a market cap of $89.64 billion, a price-to-earnings ratio of 24.74, a PEG ratio of 0.95 and a beta of 2.12. Royal Caribbean Cruises has a 12 month low of $164.01 and a 12 month high of $366.50.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The company reported $4.38 EPS for the quarter, topping analysts' consensus estimates of $4.04 by $0.34. The firm had revenue of $4.54 billion during the quarter, compared to analyst estimates of $4.54 billion. Royal Caribbean Cruises had a return on equity of 47.15% and a net margin of 20.97%.The company's revenue was up 10.4% on a year-over-year basis. During the same period last year, the company earned $3.21 earnings per share. Royal Caribbean Cruises has set its FY 2025 guidance at 15.410-15.550 EPS. Q3 2025 guidance at 5.550-5.650 EPS. Research analysts expect that Royal Caribbean Cruises will post 14.9 EPS for the current year.

Royal Caribbean Cruises Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, October 13th. Stockholders of record on Thursday, September 25th will be given a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Thursday, September 25th. This is an increase from Royal Caribbean Cruises's previous quarterly dividend of $0.75. Royal Caribbean Cruises's dividend payout ratio is presently 22.49%.

Insider Activity

In other news, Director Vagn O. Sorensen sold 10,300 shares of Royal Caribbean Cruises stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $330.04, for a total transaction of $3,399,412.00. Following the transaction, the director owned 16,407 shares in the company, valued at $5,414,966.28. The trade was a 38.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Richard D. Fain sold 16,000 shares of Royal Caribbean Cruises stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $311.02, for a total value of $4,976,320.00. Following the transaction, the director owned 150,291 shares in the company, valued at $46,743,506.82. This trade represents a 9.62% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 31,507 shares of company stock worth $10,091,282 in the last 90 days. Corporate insiders own 6.95% of the company's stock.

Hedge Funds Weigh In On Royal Caribbean Cruises

Several institutional investors have recently modified their holdings of RCL. Financial Gravity Asset Management Inc. bought a new stake in Royal Caribbean Cruises in the 1st quarter valued at approximately $25,000. Hughes Financial Services LLC bought a new stake in Royal Caribbean Cruises in the 1st quarter valued at approximately $26,000. Opal Wealth Advisors LLC bought a new stake in Royal Caribbean Cruises in the 2nd quarter valued at approximately $27,000. Optimum Investment Advisors bought a new stake in Royal Caribbean Cruises in the 1st quarter valued at approximately $31,000. Finally, Oliver Lagore Vanvalin Investment Group bought a new stake in Royal Caribbean Cruises in the 2nd quarter valued at approximately $31,000. Institutional investors own 87.53% of the company's stock.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd.

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