Royal Caribbean Cruises Ltd. (RCL) Cut to “Hold” at Zacks Investment Research

Royal Caribbean Cruises Ltd. (NYSE:RCL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.

According to Zacks, “Royal Caribbean shares have outpaced the industry in the past year. Given solid performance in the last reported quarter along with favorable booking trends, the company raised its full-year 2017 earnings view. Going forward, the company’s sailings in the U.S., Europe, Alaska, Baltic and Asia, are likely to continue performing strongly. The company thus remains positioned to witness another record year and achieve its targets under the Double-Double program. While, its capacity growth should aid in meeting increased demand, ship innovation and technology investments should lead to higher yields. However, higher costs might hurt the company’s profitability in the near term. Further, lingering global uncertainties in key operating regions, along with negative currency translation remain concerns.”

Other equities research analysts have also issued reports about the company. Nomura upped their price objective on Royal Caribbean Cruises from $131.00 to $135.00 and gave the company a “buy” rating in a research note on Wednesday, August 2nd. Buckingham Research upped their price objective on Royal Caribbean Cruises to $149.00 and gave the company a “buy” rating in a research note on Wednesday, August 2nd. Wedbush upped their price objective on Royal Caribbean Cruises from $125.00 to $129.00 and gave the company an “outperform” rating in a research note on Wednesday, August 2nd. Goldman Sachs Group, Inc. (The) upgraded Royal Caribbean Cruises from a “sell” rating to a “neutral” rating and upped their price objective for the company from $99.00 to $115.00 in a research note on Wednesday, August 2nd. Finally, J P Morgan Chase & Co upgraded Royal Caribbean Cruises from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $111.00 to $130.00 in a research note on Thursday, July 20th. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating, sixteen have given a buy rating and one has issued a strong buy rating to the company’s stock. Royal Caribbean Cruises has an average rating of “Buy” and a consensus price target of $118.44.

Royal Caribbean Cruises (RCL) traded down 0.16% on Wednesday, reaching $121.47. The company had a trading volume of 520,650 shares. The stock has a market cap of $26.13 billion, a price-to-earnings ratio of 17.04 and a beta of 1.03. The company has a 50-day moving average of $118.87 and a 200 day moving average of $108.17. Royal Caribbean Cruises has a one year low of $65.45 and a one year high of $125.00.

Royal Caribbean Cruises (NYSE:RCL) last released its quarterly earnings data on Tuesday, August 1st. The company reported $1.71 earnings per share for the quarter, beating the consensus estimate of $1.67 by $0.04. Royal Caribbean Cruises had a return on equity of 16.71% and a net margin of 17.73%. The company had revenue of $2.20 billion for the quarter, compared to analyst estimates of $2.19 billion. During the same period in the prior year, the company posted $1.09 EPS. The company’s revenue was up 4.3% compared to the same quarter last year. On average, equities research analysts predict that Royal Caribbean Cruises will post $7.44 EPS for the current year.

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In other Royal Caribbean Cruises news, EVP Harri U. Kulovaara sold 7,580 shares of the company’s stock in a transaction on Monday, August 14th. The stock was sold at an average price of $119.61, for a total transaction of $906,643.80. Following the transaction, the executive vice president now owns 23,493 shares of the company’s stock, valued at approximately $2,809,997.73. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Richard D. Fain sold 20,000 shares of the company’s stock in a transaction on Thursday, July 13th. The stock was sold at an average price of $109.62, for a total value of $2,192,400.00. Following the transaction, the chief executive officer now directly owns 967,741 shares in the company, valued at approximately $106,083,768.42. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 460,079 shares of company stock worth $53,714,055. Company insiders own 15.30% of the company’s stock.

Hedge funds have recently bought and sold shares of the company. Prudential Financial Inc. lifted its stake in shares of Royal Caribbean Cruises by 17.8% in the 1st quarter. Prudential Financial Inc. now owns 477,787 shares of the company’s stock valued at $46,875,000 after purchasing an additional 72,120 shares during the period. Dynamic Capital Management Ltd lifted its stake in shares of Royal Caribbean Cruises by 55.5% in the 1st quarter. Dynamic Capital Management Ltd now owns 35,502 shares of the company’s stock valued at $3,483,000 after purchasing an additional 12,675 shares during the period. Sheets Smith Wealth Management acquired a new position in shares of Royal Caribbean Cruises in the 2nd quarter valued at $290,000. Oakbrook Investments LLC lifted its stake in shares of Royal Caribbean Cruises by 18.4% in the 2nd quarter. Oakbrook Investments LLC now owns 13,670 shares of the company’s stock valued at $1,493,000 after purchasing an additional 2,120 shares during the period. Finally, Banco Santander S.A. acquired a new position in shares of Royal Caribbean Cruises in the 1st quarter valued at $985,000. 71.60% of the stock is currently owned by institutional investors.

About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd. is a cruise company. The Company owns and operates three global cruise brands: Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises (Global Brands). The Company also own joint venture interest in the German brand TUI Cruises, interest in the Spanish brand Pullmantur and interest in the Chinese brand SkySea Cruises (collectively, Partner Brands).

Analyst Recommendations for Royal Caribbean Cruises (NYSE:RCL)

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