Royal Caribbean Cruises Ltd. (NYSE:RCL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.
According to Zacks, “Royal Caribbean generates nearly 50% of its revenues from customers outside the U.S. where a majority pay with local currency. Hence, any unfavorable change in currency would hurt its earnings. In fact, in view of the negative impact from currency, the company slashed its full-year 2016 earnings guidance as well. Moreover, higher marketing and promotional spend, along with increased cruise costs, might hurt margins in the near term. Nonetheless, Royal Caribbean is expected to deliver solid results going forward, backed by strong booking trends, technological innovation, capacity growth and various profit-generating initiatives. Also, the company has positive record of earnings surprises in recent quarters. However, despite the growth opportunities, lingering global uncertainties in China and Europe is likely to impact the company’s international profits. Estimates too have been going down ahead of Royal Caribbean’s Q3 earnings release.”
Several other equities research analysts have also recently weighed in on the stock. Citigroup Inc. reiterated a “buy” rating and set a $95.00 price objective on shares of Royal Caribbean Cruises in a research report on Wednesday, August 24th. Stifel Nicolaus decreased their price objective on shares of Royal Caribbean Cruises from $99.00 to $94.00 and set a “buy” rating for the company in a research report on Thursday, July 28th. Credit Suisse Group AG reiterated a “buy” rating and set a $100.00 price objective on shares of Royal Caribbean Cruises in a research report on Wednesday, August 3rd. Sanford C. Bernstein started coverage on shares of Royal Caribbean Cruises in a research report on Thursday, September 8th. They set an “outperform” rating and a $90.00 price objective for the company. Finally, Nomura reiterated a “buy” rating and set a $83.00 price objective on shares of Royal Caribbean Cruises in a research report on Wednesday, September 14th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and eighteen have issued a buy rating to the stock. Royal Caribbean Cruises presently has a consensus rating of “Buy” and a consensus target price of $93.12.
Shares of Royal Caribbean Cruises (NYSE:RCL) traded down 1.61% during midday trading on Monday, reaching $68.85. 1,081,491 shares of the company’s stock traded hands. The company has a 50 day moving average of $70.74 and a 200 day moving average of $73.62. Royal Caribbean Cruises has a 52-week low of $64.21 and a 52-week high of $103.40. The firm has a market cap of $14.82 billion, a PE ratio of 19.65 and a beta of 1.65.
Royal Caribbean Cruises (NYSE:RCL) last posted its quarterly earnings data on Tuesday, August 2nd. The company reported $1.09 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.02 by $0.07. Royal Caribbean Cruises had a net margin of 9.05% and a return on equity of 14.76%. The company earned $2.11 billion during the quarter, compared to analysts’ expectations of $2.17 billion. During the same period in the prior year, the company posted $0.84 earnings per share. Royal Caribbean Cruises’s revenue for the quarter was up 2.3% compared to the same quarter last year. On average, equities analysts predict that Royal Caribbean Cruises will post $6.05 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 13th. Investors of record on Thursday, September 29th were issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 2.74%. The ex-dividend date was Tuesday, September 27th. This is an increase from Royal Caribbean Cruises’s previous quarterly dividend of $0.38. Royal Caribbean Cruises’s dividend payout ratio (DPR) is 55.01%.
In related news, CEO Richard D. Fain acquired 29,190 shares of the firm’s stock in a transaction that occurred on Wednesday, August 3rd. The stock was acquired at an average price of $68.52 per share, for a total transaction of $2,000,098.80. Following the completion of the acquisition, the chief executive officer now owns 1,068,881 shares of the company’s stock, valued at approximately $73,239,726.12. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Vagn O. Sorensen acquired 1,100 shares of the firm’s stock in a transaction that occurred on Thursday, August 18th. The shares were bought at an average price of $70.50 per share, with a total value of $77,550.00. Following the acquisition, the director now directly owns 18,871 shares of the company’s stock, valued at approximately $1,330,405.50. The disclosure for this purchase can be found here. Corporate insiders own 16.80% of the company’s stock.
A number of hedge funds have recently bought and sold shares of the company. Suvretta Capital Management LLC bought a new stake in Royal Caribbean Cruises during the first quarter worth about $78,724,000. MIG Capital LLC increased its position in Royal Caribbean Cruises by 93.1% in the first quarter. MIG Capital LLC now owns 411,000 shares of the company’s stock valued at $33,764,000 after buying an additional 198,207 shares during the last quarter. Geode Capital Management LLC increased its position in Royal Caribbean Cruises by 1.2% in the first quarter. Geode Capital Management LLC now owns 1,385,668 shares of the company’s stock valued at $113,602,000 after buying an additional 16,348 shares during the last quarter. Envestnet Asset Management Inc. increased its position in Royal Caribbean Cruises by 17.0% in the first quarter. Envestnet Asset Management Inc. now owns 29,423 shares of the company’s stock valued at $2,417,000 after buying an additional 4,276 shares during the last quarter. Finally, AMP Capital Investors Ltd increased its position in Royal Caribbean Cruises by 55.1% in the first quarter. AMP Capital Investors Ltd now owns 80,966 shares of the company’s stock valued at $6,507,000 after buying an additional 28,751 shares during the last quarter. Institutional investors and hedge funds own 75.04% of the company’s stock.
About Royal Caribbean Cruises
Royal Caribbean Cruises Ltd. is a cruise company. The Company owns various brands, such as Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisieres de France and joint venture interest in TUI Cruises. It operates approximately 23 ships with an aggregate capacity of approximately 68,600 berths under its Royal Caribbean International brand, offering cruise itineraries that range from 2 to 24 nights.