Traders Buy High Volume of Call Options on Norwegian Cruise Line (NYSE:NCLH)

Key Points

• Unusual options activity saw traders buy 49,156 call options on Norwegian Cruise Line, about 36% above its typical volume of 36,052 contracts.
• Shares rose 8.4% to $16.04 on heavier-than-normal trading volume, well below the stock’s 52-week high of $27.18.
• Recent analyst updates have been mostly cautious, with several firms cutting price targets; the stock now carries an average “Hold” rating and a consensus target of $21.41.

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH - Get Free Report) was the target of some unusual options trading on Wednesday. Stock traders purchased 49,156 call options on the company. This represents an increase of approximately 36% compared to the typical volume of 36,052 call options.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on NCLH shares. Susquehanna lowered their target price on shares of Norwegian Cruise Line from $20.00 to $15.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 5th. Morgan Stanley lowered their target price on shares of Norwegian Cruise Line from $23.00 to $20.00 and set an "equal weight" rating on the stock in a research note on Tuesday, May 5th. Wolfe Research reissued an "outperform" rating and set a $25.00 price objective on shares of Norwegian Cruise Line in a research note on Tuesday, March 3rd. Wells Fargo & Company decreased their price target on shares of Norwegian Cruise Line from $26.00 to $20.00 and set an "overweight" rating on the stock in a report on Wednesday, May 6th. Finally, Barclays lowered their price target on Norwegian Cruise Line from $21.00 to $19.00 and set an "equal weight" rating on the stock in a research report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $21.41.

Norwegian Cruise Line Stock Up 8.4%

NCLH stock traded up $1.25 on Wednesday, reaching $16.04. 33,005,235 shares of the company traded hands, compared to its average volume of 22,500,369. Norwegian Cruise Line has a one year low of $14.53 and a one year high of $27.18. The company has a debt-to-equity ratio of 5.75, a current ratio of 0.21 and a quick ratio of 0.18. The company has a market cap of $7.36 billion, a P/E ratio of 13.48, a price-to-earnings-growth ratio of 0.90 and a beta of 1.92. The firm has a fifty day simple moving average of $18.77 and a 200-day simple moving average of $20.45.

Norwegian Cruise Line (NYSE:NCLH - Get Free Report) last posted its quarterly earnings results on Monday, May 4th. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.15 by $0.08. The firm had revenue of $2.33 billion during the quarter, compared to analyst estimates of $2.36 billion. Norwegian Cruise Line had a return on equity of 47.84% and a net margin of 5.66%.Norwegian Cruise Line's quarterly revenue was up 9.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.07 EPS. Norwegian Cruise Line has set its Q2 2026 guidance at 0.380-0.380 EPS and its FY 2026 guidance at 1.450-1.790 EPS. Research analysts anticipate that Norwegian Cruise Line will post 1.59 earnings per share for the current year.

Insider Activity at Norwegian Cruise Line

In other news, Director Zillah Byng-Thorne bought 4,452 shares of the stock in a transaction dated Thursday, May 7th. The stock was bought at an average price of $17.83 per share, for a total transaction of $79,379.16. Following the completion of the acquisition, the director directly owned 25,742 shares in the company, valued at approximately $458,979.86. This trade represents a 20.91% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.41% of the stock is currently owned by corporate insiders.

Institutional Trading of Norwegian Cruise Line

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NCLH. SHP Wealth Management bought a new position in shares of Norwegian Cruise Line in the fourth quarter worth approximately $26,000. MUFG Securities EMEA plc bought a new stake in Norwegian Cruise Line during the 2nd quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd bought a new stake in Norwegian Cruise Line during the 4th quarter valued at approximately $31,000. Clearstead Advisors LLC lifted its holdings in shares of Norwegian Cruise Line by 130.2% in the fourth quarter. Clearstead Advisors LLC now owns 1,607 shares of the company's stock worth $36,000 after buying an additional 909 shares in the last quarter. Finally, Aventura Private Wealth LLC purchased a new position in shares of Norwegian Cruise Line in the fourth quarter worth $42,000. 69.58% of the stock is owned by hedge funds and other institutional investors.

Norwegian Cruise Line Company Profile

Norwegian Cruise Line Holdings Ltd. NYSE: NCLH is a global cruise operator offering a portfolio of premium brands that includes Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. The company provides sea voyages and related onboard services such as dining, entertainment, shore excursions and destination experiences. Its fleet of modern vessels sails to more than 400 destinations across all seven continents, serving leisure travelers with itineraries ranging from short Caribbean getaways to extended world voyages.

Founded in 1966 by Knut Kloster and Ted Arison, the company pioneered the concept of “Freestyle Cruising,” which allows passengers greater flexibility in dining schedules, entertainment choices and onboard activities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.