Royal Caribbean Cruises (RCL) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research downgraded shares of Royal Caribbean Cruises (NYSE:RCL) from a buy rating to a hold rating in a research report report published on Wednesday.

According to Zacks, “Royal Caribbean shares have outpaced the industry in the past year. Solid demand trends and continued cost discipline led the company to successfully complete its Double-Double program.Going forward, we are particularly positive on Royal Caribbean’s three-year program designed to drive performance: 20/20 Vision. Also, moving ahead, the company’s sailings are all likely to continue performing strongly given strong bookings trends. Moreover, while its capacity growth is expected to aid in meeting increased demand, ship innovation and technology investments may lead to higher yields. The company has also been successful in dealing with the volatility in fuel prices given its environmental efforts. Yet, higher costs in the near-term and adverse forex translations might hamper its profitability. Despite growth opportunities, lingering global uncertainties in key operating regions are likely to affect its international profits.”

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A number of other equities analysts have also recently commented on RCL. ValuEngine cut shares of Royal Caribbean Cruises from a buy rating to a hold rating in a research report on Wednesday, January 3rd. Berenberg Bank raised shares of Royal Caribbean Cruises from a hold rating to a buy rating in a research report on Thursday, January 11th. SunTrust Banks lifted their price objective on shares of Royal Caribbean Cruises to $149.00 and gave the stock a buy rating in a research report on Wednesday, January 17th. Wedbush reaffirmed an outperform rating and set a $145.00 price objective (up from $139.00) on shares of Royal Caribbean Cruises in a research report on Thursday, January 25th. Finally, Stifel Nicolaus lifted their price objective on shares of Royal Caribbean Cruises from $150.00 to $152.00 and gave the stock a buy rating in a research report on Thursday, January 25th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the stock. The company has a consensus rating of Buy and an average price target of $136.93.

NYSE:RCL opened at $114.83 on Wednesday. Royal Caribbean Cruises has a 1-year low of $93.86 and a 1-year high of $135.65. The company has a debt-to-equity ratio of 0.59, a current ratio of 0.18 and a quick ratio of 0.15. The firm has a market capitalization of $25,183.91, a P/E ratio of 15.25, a PEG ratio of 0.64 and a beta of 1.23.

Royal Caribbean Cruises (NYSE:RCL) last released its earnings results on Wednesday, January 24th. The company reported $1.34 earnings per share for the quarter, beating the consensus estimate of $1.20 by $0.14. Royal Caribbean Cruises had a net margin of 18.51% and a return on equity of 16.22%. The business had revenue of $2 billion during the quarter, compared to analysts’ expectations of $1.97 billion. During the same period last year, the business earned $1.23 earnings per share. The firm’s revenue was up 5.0% on a year-over-year basis. sell-side analysts anticipate that Royal Caribbean Cruises will post 8.7 EPS for the current year.

The company also recently announced a quarterly dividend, which was paid on Thursday, April 5th. Stockholders of record on Wednesday, March 7th were issued a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 2.09%. The ex-dividend date of this dividend was Tuesday, March 6th. Royal Caribbean Cruises’s dividend payout ratio is currently 31.87%.

In other news, CEO Michael W. Bayley sold 19,060 shares of Royal Caribbean Cruises stock in a transaction on Tuesday, February 20th. The stock was sold at an average price of $131.39, for a total transaction of $2,504,293.40. Following the completion of the sale, the chief executive officer now owns 67,530 shares of the company’s stock, valued at $8,872,766.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Richard D. Fain sold 20,000 shares of Royal Caribbean Cruises stock in a transaction on Tuesday, March 13th. The stock was sold at an average price of $126.33, for a total value of $2,526,600.00. Following the sale, the chief executive officer now directly owns 911,737 shares of the company’s stock, valued at approximately $115,179,735.21. The disclosure for this sale can be found here. Insiders have sold 120,799 shares of company stock valued at $15,556,896 in the last three months. Insiders own 15.30% of the company’s stock.

Institutional investors and hedge funds have recently bought and sold shares of the company. IFG Advisory LLC acquired a new stake in shares of Royal Caribbean Cruises during the fourth quarter worth $641,000. Squar Milner Financial Services LLC acquired a new stake in shares of Royal Caribbean Cruises during the fourth quarter worth $207,000. NuWave Investment Management LLC acquired a new stake in shares of Royal Caribbean Cruises during the fourth quarter worth $185,000. Sheaff Brock Investment Advisors LLC acquired a new stake in shares of Royal Caribbean Cruises during the third quarter worth $204,000. Finally, Checchi Capital Advisers LLC acquired a new stake in shares of Royal Caribbean Cruises during the fourth quarter worth $207,000. 74.41% of the stock is owned by institutional investors.

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Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd. operates as a cruise company. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises brands. The Royal Caribbean International brand provides itineraries to destinations worldwide, including Alaska, Asia, Australia, Bahamas, Bermuda, Canada, the Caribbean, Europe, the Panama Canal, and New Zealand with cruise lengths that range from 2 to 23 nights.

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Analyst Recommendations for Royal Caribbean Cruises (NYSE:RCL)

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