Royal Caribbean Cruises Ltd. (NYSE:RCL) Receives Consensus Rating of “Moderate Buy” from Brokerages

Royal Caribbean Cruises Ltd. (NYSE:RCL) has been assigned a consensus recommendation of “Moderate Buy” from the twenty-three brokerages that are covering the firm, Marketbeat Ratings reports. Four equities research analysts have rated the stock with a hold rating, eighteen have issued a buy rating and one has issued a strong buy rating on the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $348.2857.

Several research firms recently weighed in on RCL. Morgan Stanley lifted their price objective on Royal Caribbean Cruises from $290.00 to $330.00 and gave the company an “equal weight” rating in a report on Tuesday, February 3rd. Jefferies Financial Group boosted their price target on shares of Royal Caribbean Cruises from $275.00 to $334.00 and gave the company a “hold” rating in a report on Friday, January 30th. Wells Fargo & Company boosted their price objective on shares of Royal Caribbean Cruises from $373.00 to $383.00 and gave the stock an “overweight” rating in a research note on Sunday, February 1st. Wall Street Zen downgraded Royal Caribbean Cruises from a “buy” rating to a “hold” rating in a research report on Saturday, November 1st. Finally, The Goldman Sachs Group raised their price target on shares of Royal Caribbean Cruises from $310.00 to $370.00 and gave the company a “buy” rating in a report on Friday, January 30th.

Hedge Funds Weigh In On Royal Caribbean Cruises

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. California Public Employees Retirement System lifted its stake in shares of Royal Caribbean Cruises by 11.1% during the 2nd quarter. California Public Employees Retirement System now owns 433,018 shares of the company’s stock valued at $135,595,000 after buying an additional 43,184 shares in the last quarter. Y Intercept Hong Kong Ltd purchased a new stake in Royal Caribbean Cruises in the 3rd quarter worth $4,806,000. Marion Wealth Management purchased a new stake in Royal Caribbean Cruises in the 2nd quarter worth $291,000. Asset Management One Co. Ltd. raised its holdings in shares of Royal Caribbean Cruises by 7.4% during the 2nd quarter. Asset Management One Co. Ltd. now owns 180,556 shares of the company’s stock worth $56,539,000 after acquiring an additional 12,475 shares in the last quarter. Finally, Nordea Investment Management AB raised its holdings in shares of Royal Caribbean Cruises by 253.7% during the 3rd quarter. Nordea Investment Management AB now owns 556,061 shares of the company’s stock worth $179,241,000 after acquiring an additional 398,849 shares in the last quarter. Hedge funds and other institutional investors own 87.53% of the company’s stock.

Royal Caribbean Cruises Stock Performance

Shares of Royal Caribbean Cruises stock opened at $332.78 on Friday. The company has a quick ratio of 0.16, a current ratio of 0.18 and a debt-to-equity ratio of 1.77. The stock’s fifty day moving average is $295.46 and its two-hundred day moving average is $303.60. Royal Caribbean Cruises has a 52 week low of $164.01 and a 52 week high of $366.50. The company has a market capitalization of $90.75 billion, a PE ratio of 21.32, a price-to-earnings-growth ratio of 1.09 and a beta of 1.91.

Royal Caribbean Cruises (NYSE:RCL) last posted its quarterly earnings results on Thursday, January 29th. The company reported $2.80 EPS for the quarter, hitting the consensus estimate of $2.80. Royal Caribbean Cruises had a net margin of 23.80% and a return on equity of 45.06%. The company had revenue of $4.26 billion for the quarter, compared to the consensus estimate of $4.28 billion. During the same quarter last year, the firm posted $1.63 EPS. The firm’s revenue was up 13.2% compared to the same quarter last year. As a group, analysts expect that Royal Caribbean Cruises will post 14.9 earnings per share for the current year.

Royal Caribbean Cruises Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 3rd. Investors of record on Friday, March 6th will be given a $1.50 dividend. This represents a $6.00 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend is Friday, March 6th. This is an increase from Royal Caribbean Cruises’s previous quarterly dividend of $1.00. Royal Caribbean Cruises’s payout ratio is 25.62%.

Royal Caribbean Cruises announced that its board has approved a stock buyback program on Wednesday, December 10th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the company to purchase up to 2.6% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises (NYSE: RCL), operating as part of the Royal Caribbean Group, is a global cruise company that develops, markets and operates passenger cruise ships. The company operates multiple consumer-facing cruise brands that offer short- and long-duration itineraries and a range of onboard experiences. Its core activities include itineraries and voyage operations, guest services and hospitality, onboard food and beverage, entertainment and recreation programming, and the commercial activities needed to sell and support cruises through both direct and travel‑agent channels.

Royal Caribbean’s ships serve a broad set of geographies worldwide, regularly deploying vessels in the Caribbean, North America (including Alaska), Europe, Asia, Australia and South America.