Zacks Research Upgrades Norwegian Cruise Line (NYSE:NCLH) to Hold

Key Points

• Zacks Research upgraded Norwegian Cruise Line from strong sell to hold, reflecting a more neutral view on the stock. Overall analyst sentiment remains mixed, with a Moderate Buy consensus and an average price target of $21.55.
• The company reported better-than-expected quarterly EPS of $0.23 versus the $0.15 estimate, while revenue rose 9.6% year over year to $2.33 billion. Norwegian Cruise Line also reiterated guidance for Q2 2026 EPS of $0.38 and FY 2026 EPS of $1.45 to $1.79.
• Insiders have been buying shares, including director Stephen G. Pagliuca’s purchase of 685,000 shares and director Jonathan Z. Cohen’s purchase of 30,000 shares. In total, insiders bought 1.59 million shares over the last quarter, while institutional investors own about 69.58% of the stock.

Norwegian Cruise Line (NYSE:NCLH - Get Free Report) was upgraded by research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a report issued on Monday,Zacks.com reports.

Several other brokerages have also commented on NCLH. TD Cowen increased their price objective on Norwegian Cruise Line from $22.00 to $24.00 and gave the company a "buy" rating in a research report on Tuesday, June 23rd. Stifel Nicolaus cut their target price on Norwegian Cruise Line from $28.00 to $27.00 and set a "buy" rating for the company in a research note on Monday, April 20th. The Goldman Sachs Group set a $14.00 price target on shares of Norwegian Cruise Line in a research report on Tuesday, May 5th. Truist Financial decreased their price target on shares of Norwegian Cruise Line from $25.00 to $20.00 and set a "buy" rating on the stock in a research note on Friday, May 22nd. Finally, Freedom Capital raised shares of Norwegian Cruise Line to a "strong-buy" rating in a research note on Wednesday, June 3rd. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and thirteen have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $21.55.

Norwegian Cruise Line Price Performance

NCLH stock opened at $18.85 on Monday. The firm has a 50 day simple moving average of $18.41 and a two-hundred day simple moving average of $20.44. The stock has a market cap of $8.66 billion, a PE ratio of 15.84, a P/E/G ratio of 1.20 and a beta of 1.87. 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.

Norwegian Cruise Line (NYSE:NCLH - Get Free Report) last posted its quarterly earnings data on Monday, May 4th. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.15 by $0.08. Norwegian Cruise Line had a net margin of 5.66% and a return on equity of 47.84%. The company had revenue of $2.33 billion during the quarter, compared to the consensus estimate of $2.36 billion. During the same period in the previous year, the firm posted $0.07 EPS. The firm's revenue was up 9.6% compared to the same quarter last year. 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. On average, analysts predict that Norwegian Cruise Line will post 1.51 EPS for the current fiscal year.

Insider Activity

In other news, Director Stephen G. Pagliuca acquired 685,000 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was purchased at an average cost of $18.06 per share, with a total value of $12,371,100.00. Following the completion of the purchase, the director owned 1,388,912 shares in the company, valued at approximately $25,083,750.72. The trade was a 97.31% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Jonathan Z. Cohen bought 30,000 shares of the company's stock in a transaction dated Wednesday, May 20th. The shares were purchased at an average price of $15.83 per share, with a total value of $474,900.00. Following the completion of the acquisition, the director owned 38,912 shares of the company's stock, valued at $615,976.96. This trade represents a 336.62% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have purchased 1,592,467 shares of company stock valued at $28,493,204. 0.25% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Norwegian Cruise Line

Several institutional investors and hedge funds have recently bought and sold shares of the business. SHP Wealth Management bought a new stake in Norwegian Cruise Line in the fourth quarter valued at $26,000. MUFG Securities EMEA plc bought a new position in Norwegian Cruise Line in the second quarter worth about $26,000. Caitong International Asset Management Co. Ltd purchased a new stake in Norwegian Cruise Line in the fourth quarter worth about $31,000. Clearstead Advisors LLC lifted its holdings in 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 during the period. Finally, Aventura Private Wealth LLC bought a new stake in Norwegian Cruise Line during the 4th quarter valued at approximately $42,000. Hedge funds and other institutional investors own 69.58% of the company's stock.

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.

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