Royal Caribbean Cruises (NYSE:RCL) Reaches New 52-Week High – Should You Buy?

Shares of Royal Caribbean Cruises Ltd. (NYSE:RCL) reached a new 52-week high on Monday . The stock traded as high as $279.89 and last traded at $276.84, with a volume of 216819 shares. The stock had previously closed at $276.34.

Analyst Ratings Changes

Several research analysts have recently weighed in on RCL shares. UBS Group set a $311.00 price target on Royal Caribbean Cruises and gave the stock a “buy” rating in a research note on Tuesday, May 20th. Stifel Nicolaus raised their target price on Royal Caribbean Cruises from $275.00 to $310.00 and gave the stock a “buy” rating in a research note on Wednesday, June 4th. Susquehanna cut their target price on Royal Caribbean Cruises from $295.00 to $275.00 and set a “positive” rating for the company in a research note on Wednesday, April 30th. Citigroup raised their target price on Royal Caribbean Cruises from $268.00 to $318.00 and gave the stock a “buy” rating in a research note on Thursday, June 5th. Finally, Macquarie cut their target price on Royal Caribbean Cruises from $300.00 to $265.00 and set an “outperform” rating for the company in a research note on Friday, May 9th. Four investment analysts have rated the stock with a hold rating, seventeen have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $276.90.

Royal Caribbean Cruises Trading Down 1.5%

The firm has a fifty day simple moving average of $227.23 and a two-hundred day simple moving average of $233.47. The stock has a market cap of $73.32 billion, a PE ratio of 25.26, a PEG ratio of 0.90 and a beta of 2.14. The company has a current ratio of 0.17, a quick ratio of 0.15 and a debt-to-equity ratio of 2.39.

Royal Caribbean Cruises (NYSE:RCL) last announced its quarterly earnings data on Tuesday, April 29th. The company reported $2.71 earnings per share for the quarter, beating analysts’ consensus estimates of $2.53 by $0.18. The company had revenue of $4 billion for the quarter, compared to analysts’ expectations of $4.02 billion. Royal Caribbean Cruises had a return on equity of 48.97% and a net margin of 17.46%. Royal Caribbean Cruises’s revenue for the quarter was up 7.3% compared to the same quarter last year. During the same period last year, the firm posted $1.77 EPS. As a group, equities analysts expect that Royal Caribbean Cruises Ltd. will post 14.9 earnings per share for the current fiscal year.

Royal Caribbean Cruises Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 3rd. Investors of record on Wednesday, June 4th will be issued a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.11%. Royal Caribbean Cruises’s dividend payout ratio is 24.92%.

Royal Caribbean Cruises declared that its Board of Directors has authorized a share buyback plan on Wednesday, February 12th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 1.5% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s management believes its stock is undervalued.

Insider Activity at Royal Caribbean Cruises

In related news, Director Richard D. Fain sold 19,600 shares of the firm’s stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $253.10, for a total transaction of $4,960,760.00. Following the transaction, the director now directly owns 165,421 shares of the company’s stock, valued at approximately $41,868,055.10. This trade represents a 10.59% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 6.95% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Royal Caribbean Cruises

A number of large investors have recently bought and sold shares of RCL. Brighton Jones LLC increased its stake in Royal Caribbean Cruises by 12.2% in the 4th quarter. Brighton Jones LLC now owns 1,312 shares of the company’s stock worth $303,000 after purchasing an additional 143 shares during the period. Apollon Wealth Management LLC increased its stake in Royal Caribbean Cruises by 14.3% in the 4th quarter. Apollon Wealth Management LLC now owns 4,540 shares of the company’s stock worth $1,047,000 after purchasing an additional 569 shares during the period. Empowered Funds LLC increased its stake in Royal Caribbean Cruises by 804.3% in the 4th quarter. Empowered Funds LLC now owns 30,205 shares of the company’s stock worth $6,968,000 after purchasing an additional 26,865 shares during the period. Kestra Private Wealth Services LLC increased its stake in Royal Caribbean Cruises by 9.5% in the 4th quarter. Kestra Private Wealth Services LLC now owns 5,644 shares of the company’s stock worth $1,302,000 after purchasing an additional 490 shares during the period. Finally, Savant Capital LLC increased its stake in Royal Caribbean Cruises by 16.4% in the 4th quarter. Savant Capital LLC now owns 6,076 shares of the company’s stock worth $1,402,000 after purchasing an additional 857 shares during the period. 87.53% of the stock is owned by hedge funds and other institutional investors.

About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd.