Truist Financial Downgrades Norwegian Cruise Line (NYSE:NCLH) to Hold

Key Points

• Truist Financial downgraded Norwegian Cruise Line from “buy” to “hold” and set a $20 price target, implying only modest upside from the prior close.
• Analyst sentiment on NCLH is mixed, but the overall consensus from MarketBeat data remains “Hold” with an average price target of $21.60.
• The company recently posted better-than-expected EPS of $0.23 and 9.6% revenue growth year over year, while insiders have also been buying shares in recent months.

Norwegian Cruise Line (NYSE:NCLH - Get Free Report) was downgraded by Truist Financial from a "buy" rating to a "hold" rating in a report issued on Thursday, MarketBeat Ratings reports. They presently have a $20.00 price objective on the stock. Truist Financial's price objective suggests a potential upside of 3.49% from the company's previous close.

Several other equities analysts have also recently weighed in on the stock. Zacks Research raised shares of Norwegian Cruise Line from a "strong sell" rating to a "hold" rating in a research report on Monday, July 6th. Loop Capital began coverage on Norwegian Cruise Line in a research note on Monday, June 1st. They set a "buy" rating and a $22.00 price objective on the stock. Tigress Financial cut their price objective on shares of Norwegian Cruise Line from $38.00 to $32.00 and set a "strong-buy" rating on the stock in a report on Friday, April 17th. Northcoast Research lowered shares of Norwegian Cruise Line from a "buy" rating to a "neutral" rating in a research note on Wednesday, May 6th. Finally, Morgan Stanley increased their target price on shares of Norwegian Cruise Line from $20.00 to $22.00 and gave the company an "equal weight" rating in a report on Thursday, July 9th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and fourteen have given a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $21.60.

Norwegian Cruise Line Price Performance

Shares of NYSE:NCLH opened at $19.32 on Thursday. The company has a quick ratio of 0.18, a current ratio of 0.21 and a debt-to-equity ratio of 5.75. Norwegian Cruise Line has a twelve month low of $14.53 and a twelve month high of $27.18. The stock's 50 day moving average is $18.90 and its 200-day moving average is $20.18. The firm has a market capitalization of $8.87 billion, a price-to-earnings ratio of 16.24, a PEG ratio of 1.16 and a beta of 1.87.

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, beating the consensus estimate of $0.15 by $0.08. The business had revenue of $2.33 billion during the quarter, compared to the consensus estimate of $2.36 billion. Norwegian Cruise Line had a net margin of 5.66% and a return on equity of 47.84%. Norwegian Cruise Line's revenue was up 9.6% compared to the same quarter last year. During the same quarter last year, the firm posted $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. Sell-side analysts forecast that Norwegian Cruise Line will post 1.51 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Stephen G. Pagliuca purchased 685,000 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The shares were bought at an average cost of $18.06 per share, with a total value of $12,371,100.00. Following the acquisition, the director owned 1,388,912 shares of the company's stock, valued at $25,083,750.72. This represents a 97.31% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO John Chidsey purchased 153,000 shares of Norwegian Cruise Line stock in a transaction that occurred on Friday, May 22nd. The shares were bought at an average price of $16.37 per share, with a total value of $2,504,610.00. Following the transaction, the chief executive officer owned 1,139,940 shares of the company's stock, valued at $18,660,817.80. This trade represents a 15.50% increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have purchased 1,592,467 shares of company stock valued at $28,493,204. 0.25% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Norwegian Cruise Line

A number of hedge funds have recently modified their holdings of the stock. Handelsbanken Fonder AB raised its stake in shares of Norwegian Cruise Line by 19.2% in the second quarter. Handelsbanken Fonder AB now owns 149,000 shares of the company's stock valued at $3,145,000 after buying an additional 24,000 shares during the period. Czech National Bank grew its stake in shares of Norwegian Cruise Line by 5.4% during the 2nd quarter. Czech National Bank now owns 130,680 shares of the company's stock worth $2,759,000 after acquiring an additional 6,693 shares during the period. M.E. Allison & CO. Inc. increased its holdings in Norwegian Cruise Line by 28.2% in the 2nd quarter. M.E. Allison & CO. Inc. now owns 140,510 shares of the company's stock worth $2,966,000 after acquiring an additional 30,900 shares during the last quarter. Harbor Investment Advisory LLC purchased a new stake in Norwegian Cruise Line in the 2nd quarter worth about $68,000. Finally, CoreCap Advisors LLC raised its stake in Norwegian Cruise Line by 41.0% in the 2nd quarter. CoreCap Advisors LLC now owns 9,664 shares of the company's stock valued at $204,000 after acquiring an additional 2,808 shares during the period. Institutional investors own 69.58% of the company's stock.

About Norwegian Cruise Line

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.

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