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

Key Points

• Analysts give Royal Caribbean a consensus "Moderate Buy" rating from 20 firms (16 buys, 4 holds) with an average 12‑month price target of $352.89.
• Significant insider selling occurred recently—insiders sold 1,967,319 shares worth roughly $626.7 million in the last 90 days, though insiders still own about 6.95% of the company.
• Latest results showed Q4 EPS of $2.80 (in line with estimates) and strong profitability (23.8% net margin, 45.06% ROE), and the company raised its quarterly dividend to $1.50 (annualized $6.00, ~2.3% yield).

Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) has earned an average recommendation of "Moderate Buy" from the twenty ratings firms that are currently covering the stock, MarketBeat.com reports. Four investment analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $352.8947.

RCL has been the topic of a number of analyst reports. UBS Group decreased their target price on shares of Royal Caribbean Cruises from $350.00 to $321.00 and set a "buy" rating on the stock in a report on Tuesday, April 14th. William Blair reaffirmed an "outperform" rating on shares of Royal Caribbean Cruises in a report on Thursday, January 29th. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $380.00 target price on shares of Royal Caribbean Cruises in a report on Friday, January 30th. The Goldman Sachs Group upped their target price on shares of Royal Caribbean Cruises from $310.00 to $370.00 and gave the stock a "buy" rating in a report on Friday, January 30th. Finally, Jefferies Financial Group upped their target price on shares of Royal Caribbean Cruises from $275.00 to $334.00 and gave the stock a "hold" rating in a report on Friday, January 30th.

Insider Buying and Selling

In other Royal Caribbean Cruises news, insider Laura H. Bethge sold 7,854 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $326.21, for a total value of $2,562,053.34. Following the completion of the transaction, the insider owned 32,786 shares of the company's stock, valued at $10,695,121.06. The trade was a 19.33% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Maritza Gomez Montiel sold 1,385 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $327.18, for a total transaction of $453,144.30. Following the completion of the transaction, the director directly owned 12,849 shares of the company's stock, valued at approximately $4,203,935.82. This represents a 9.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 1,967,319 shares of company stock valued at $626,681,935. Company insiders own 6.95% of the company's stock.

Hedge Funds Weigh In On Royal Caribbean Cruises

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Montag A & Associates Inc. grew its stake in Royal Caribbean Cruises by 184.4% in the 4th quarter. Montag A & Associates Inc. now owns 91 shares of the company's stock worth $25,000 after buying an additional 59 shares in the last quarter. Ares Financial Consulting LLC purchased a new position in Royal Caribbean Cruises in the 4th quarter worth approximately $26,000. University of Texas Texas AM Investment Management Co. purchased a new position in Royal Caribbean Cruises in the 4th quarter worth approximately $26,000. Kemnay Advisory Services Inc. purchased a new position in Royal Caribbean Cruises in the 4th quarter worth approximately $27,000. Finally, Quattro Advisors LLC purchased a new position in Royal Caribbean Cruises in the 4th quarter worth approximately $27,000. Hedge funds and other institutional investors own 87.53% of the company's stock.

Royal Caribbean Cruises Stock Performance

NYSE RCL opened at $256.25 on Wednesday. The company's 50 day moving average is $281.77 and its 200-day moving average is $286.19. The company has a quick ratio of 0.16, a current ratio of 0.18 and a debt-to-equity ratio of 1.77. The firm has a market cap of $68.72 billion, a P/E ratio of 16.42, a price-to-earnings-growth ratio of 0.92 and a beta of 1.93. Royal Caribbean Cruises has a 12-month low of $203.85 and a 12-month high of $366.50.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last posted its earnings results on Thursday, January 29th. The company reported $2.80 earnings per share for the quarter, hitting analysts' consensus estimates of $2.80. The business had revenue of $4.26 billion for the quarter, compared to analyst estimates of $4.28 billion. Royal Caribbean Cruises had a net margin of 23.80% and a return on equity of 45.06%. Royal Caribbean Cruises's revenue was up 13.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.63 EPS. Sell-side analysts predict that Royal Caribbean Cruises will post 17.35 earnings per share for the current year.

Royal Caribbean Cruises Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, April 3rd. Investors of record on Friday, March 6th were issued a dividend of $1.50 per share. This is a boost from Royal Caribbean Cruises's previous quarterly dividend of $1.00. The ex-dividend date of this dividend was Friday, March 6th. This represents a $6.00 dividend on an annualized basis and a yield of 2.3%. Royal Caribbean Cruises's payout ratio is currently 38.44%.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises NYSE: RCL, operating as part of the Royal Caribbean Group, is a global cruise company that develops, markets and operates passenger cruise ships. The company operates multiple consumer-facing cruise brands that offer short- and long-duration itineraries and a range of onboard experiences. Its core activities include itineraries and voyage operations, guest services and hospitality, onboard food and beverage, entertainment and recreation programming, and the commercial activities needed to sell and support cruises through both direct and travel‑agent channels.

Royal Caribbean's ships serve a broad set of geographies worldwide, regularly deploying vessels in the Caribbean, North America (including Alaska), Europe, Asia, Australia and South America.

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