Royal Caribbean Cruises (NYSE:RCL) Sets New 12-Month High - What's Next?

Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) shares reached a new 52-week high on Monday . The stock traded as high as $279.89 and last traded at $276.84, with a volume of 216819 shares traded. The stock had previously closed at $276.34.

Wall Street Analysts Forecast Growth

RCL has been the subject of a number of research reports. Macquarie decreased their target price on Royal Caribbean Cruises from $300.00 to $265.00 and set an "outperform" rating for the company in a research note on Friday, May 9th. UBS Group set a $311.00 price target on Royal Caribbean Cruises and gave the stock a "buy" rating in a report on Tuesday, May 20th. Susquehanna reduced their price objective on Royal Caribbean Cruises from $295.00 to $275.00 and set a "positive" rating for the company in a research report on Wednesday, April 30th. Jefferies Financial Group started coverage on Royal Caribbean Cruises in a research note on Monday, March 31st. They set a "hold" rating and a $230.00 price objective for the company. Finally, Barclays raised their target price on Royal Caribbean Cruises from $249.00 to $263.00 and gave the company an "overweight" rating in a research note on Wednesday, April 30th. Four analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $276.90.

Royal Caribbean Cruises Stock Performance

The stock has a market cap of $72.11 billion, a P/E ratio of 24.84, a PEG ratio of 0.90 and a beta of 2.14. The company has a debt-to-equity ratio of 2.39, a current ratio of 0.17 and a quick ratio of 0.15. The company has a fifty day moving average of $229.03 and a 200 day moving average of $233.71.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last issued its quarterly earnings results on Tuesday, April 29th. The company reported $2.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.53 by $0.18. Royal Caribbean Cruises had a return on equity of 48.97% and a net margin of 17.46%. The company had revenue of $4 billion for the quarter, compared to analysts' expectations of $4.02 billion. During the same period last year, the firm earned $1.77 EPS. The firm's revenue for the quarter was up 7.3% on a year-over-year basis. On average, equities analysts predict that Royal Caribbean Cruises Ltd. will post 14.9 earnings per share for the current fiscal year.

Royal Caribbean Cruises Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 3rd. Investors of record on Wednesday, June 4th will be paid a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a yield of 1.13%. Royal Caribbean Cruises's dividend payout ratio is presently 24.92%.

Royal Caribbean Cruises declared that its board has initiated a stock buyback program on Wednesday, February 12th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the company to reacquire up to 1.5% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director Richard D. Fain sold 19,600 shares of the stock in a transaction on Monday, May 19th. The stock was sold at an average price of $253.10, for a total value of $4,960,760.00. Following the completion of the transaction, the director now owns 165,421 shares in the company, valued at $41,868,055.10. This trade represents a 10.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 6.95% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Financial Gravity Asset Management Inc. purchased a new stake in shares of Royal Caribbean Cruises in the 1st quarter valued at approximately $25,000. Hughes Financial Services LLC acquired a new stake in Royal Caribbean Cruises during the 1st quarter valued at $26,000. Brown Brothers Harriman & Co. raised its stake in Royal Caribbean Cruises by 618.8% during the 4th quarter. Brown Brothers Harriman & Co. now owns 115 shares of the company's stock valued at $27,000 after purchasing an additional 99 shares during the period. Optimum Investment Advisors purchased a new stake in shares of Royal Caribbean Cruises in the first quarter valued at $31,000. Finally, Fourth Dimension Wealth LLC acquired a new stake in shares of Royal Caribbean Cruises in the fourth quarter worth $35,000. 87.53% of the stock is currently owned by institutional investors and hedge funds.

About Royal Caribbean Cruises

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.