Royal Caribbean Cruises (NYSE:RCL) Raised to "Strong-Buy" at Melius Research

Melius Research upgraded shares of Royal Caribbean Cruises (NYSE:RCL - Free Report) to a strong-buy rating in a report issued on Monday, April 21st,Zacks.com reports.

Several other research firms have also weighed in on RCL. Mizuho reaffirmed an "outperform" rating and set a $253.00 price target (down previously from $255.00) on shares of Royal Caribbean Cruises in a research report on Thursday, January 23rd. Macquarie increased their target price on Royal Caribbean Cruises from $250.00 to $300.00 and gave the stock an "outperform" rating in a research note on Thursday, January 30th. Jefferies Financial Group began coverage on shares of Royal Caribbean Cruises in a report on Monday, March 31st. They set a "hold" rating and a $230.00 target price on the stock. Loop Capital raised shares of Royal Caribbean Cruises from a "hold" rating to a "buy" rating and set a $250.00 price target for the company in a report on Wednesday, March 5th. Finally, Susquehanna reiterated a "positive" rating on shares of Royal Caribbean Cruises in a research report on Tuesday, March 25th. Four analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, Royal Caribbean Cruises has a consensus rating of "Moderate Buy" and a consensus target price of $272.85.

Royal Caribbean Cruises Trading Down 1.6 %

NYSE:RCL traded down $3.41 during trading hours on Monday, hitting $212.90. The stock had a trading volume of 2,352,743 shares, compared to its average volume of 2,774,374. The company has a debt-to-equity ratio of 2.39, a quick ratio of 0.15 and a current ratio of 0.17. Royal Caribbean Cruises has a one year low of $130.08 and a one year high of $277.08. The business's 50 day moving average is $210.95 and its 200-day moving average is $226.99. The company has a market cap of $57.80 billion, a price-to-earnings ratio of 19.92, a P/E/G ratio of 0.90 and a beta of 2.26.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last posted its earnings results on Tuesday, April 29th. The company reported $2.71 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 business had revenue of $4 billion during the quarter, compared to analysts' expectations of $4.02 billion. During the same period in the prior year, the business earned $1.77 EPS. Royal Caribbean Cruises's revenue for the quarter was up 7.3% compared to the same quarter last year. Sell-side analysts anticipate that Royal Caribbean Cruises will post 14.9 EPS for the current fiscal year.

Royal Caribbean Cruises announced that its board has authorized a share 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 buy up to 1.5% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Royal Caribbean Cruises Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, April 4th. Investors of record on Friday, March 7th were issued a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.41%. The ex-dividend date was Friday, March 7th. This is a positive change from Royal Caribbean Cruises's previous quarterly dividend of $0.55. Royal Caribbean Cruises's dividend payout ratio is currently 28.06%.

Insider Buying and Selling

In related news, CEO Jason T. Liberty sold 58,000 shares of the stock in a transaction dated Tuesday, February 18th. The stock was sold at an average price of $261.95, for a total transaction of $15,193,100.00. Following the sale, the chief executive officer now owns 143,214 shares of the company's stock, valued at approximately $37,514,907.30. This represents a 28.83 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Laura H. Bethge sold 14,992 shares of the firm's stock in a transaction that occurred on Tuesday, February 18th. The shares were sold at an average price of $261.86, for a total transaction of $3,925,805.12. Following the completion of the transaction, the insider now owns 21,155 shares of the company's stock, valued at $5,539,648.30. This trade represents a 41.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 109,492 shares of company stock worth $28,571,705 in the last quarter. Insiders own 7.95% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Brown Brothers Harriman & Co. grew its position in Royal Caribbean Cruises by 618.8% during the fourth quarter. Brown Brothers Harriman & Co. now owns 115 shares of the company's stock worth $27,000 after buying an additional 99 shares in the last quarter. Fourth Dimension Wealth LLC purchased a new stake in Royal Caribbean Cruises in the fourth quarter valued at approximately $35,000. Bay Harbor Wealth Management LLC purchased a new stake in Royal Caribbean Cruises in the fourth quarter valued at approximately $36,000. Truvestments Capital LLC purchased a new position in Royal Caribbean Cruises in the 4th quarter worth approximately $36,000. Finally, Capital A Wealth Management LLC purchased a new position in Royal Caribbean Cruises in the 4th quarter worth approximately $40,000. 87.53% of the stock is currently owned by hedge funds and other institutional investors.

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.