Royal Caribbean Cruises (NYSE:RCL) Trading Down 10% After Insider Selling

Royal Caribbean Cruises Ltd. (NYSE:RCL) shares traded down 10% during trading on Thursday following insider selling activity. The stock traded as low as $237.22 and last traded at $237.62. 1,779,863 shares were traded during mid-day trading, a decline of 19% from the average session volume of 2,191,829 shares. The stock had previously closed at $264.01.

Specifically, insider Laura H. Bethge sold 14,992 shares of the company’s stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $261.86, for a total value of $3,925,805.12. Following the sale, the insider now directly owns 21,155 shares of the company’s stock, valued at approximately $5,539,648.30. This represents a 41.48 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Naftali Holtz sold 17,000 shares of the company’s stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $261.62, for a total transaction of $4,447,540.00. Following the completion of the sale, the chief financial officer now directly owns 42,127 shares in the company, valued at approximately $11,021,265.74. This represents a 28.75 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, CEO Jason T. Liberty sold 58,000 shares of the company’s stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $261.95, for a total value of $15,193,100.00. Following the sale, the chief executive officer now directly owns 143,214 shares of the company’s stock, valued at approximately $37,514,907.30. This represents a 28.83 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. The Goldman Sachs Group reduced their price objective on shares of Royal Caribbean Cruises from $275.00 to $270.00 and set a “buy” rating on the stock in a research note on Friday, January 24th. Loop Capital assumed coverage on shares of Royal Caribbean Cruises in a research note on Tuesday, February 4th. They issued a “hold” rating and a $250.00 price objective on the stock. Citigroup upped their price objective on shares of Royal Caribbean Cruises from $283.00 to $304.00 and gave the company a “buy” rating in a research note on Wednesday, January 29th. Bank of America upped their price objective on shares of Royal Caribbean Cruises from $210.00 to $240.00 and gave the company a “neutral” rating in a research note on Wednesday, November 13th. Finally, Macquarie increased their target price on shares of Royal Caribbean Cruises from $250.00 to $300.00 and gave the stock an “outperform” rating in a research note on Thursday, January 30th. Four investment analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $284.12.

Royal Caribbean Cruises Stock Performance

The company’s fifty day moving average price is $244.35 and its 200 day moving average price is $212.42. The company has a market cap of $63.02 billion, a PE ratio of 21.90, a P/E/G ratio of 0.90 and a beta of 2.59. The company has a debt-to-equity ratio of 2.39, a current ratio of 0.17 and a quick ratio of 0.15.

Royal Caribbean Cruises (NYSE:RCL) last announced its earnings results on Tuesday, January 28th. The company reported $1.63 EPS for the quarter, beating the consensus estimate of $1.50 by $0.13. Royal Caribbean Cruises had a net margin of 17.46% and a return on equity of 48.97%. During the same period in the prior year, the company earned $1.25 earnings per share. On average, equities research analysts predict that Royal Caribbean Cruises Ltd. will post 14.9 earnings per share for the current year.

Royal Caribbean Cruises Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, April 4th. Shareholders of record on Friday, March 7th will be given a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a yield of 1.28%. The ex-dividend date of this dividend is Friday, March 7th. This is a positive change from Royal Caribbean Cruises’s previous quarterly dividend of $0.55. Royal Caribbean Cruises’s dividend payout ratio (DPR) is currently 20.58%.

Royal Caribbean Cruises declared that its board has approved a share repurchase plan on Wednesday, February 12th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the company to purchase up to 1.5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Hedge Funds Weigh In On Royal Caribbean Cruises

A number of large investors have recently modified their holdings of the company. Formidable Asset Management LLC bought a new stake in Royal Caribbean Cruises during the fourth quarter valued at approximately $254,000. Fourth Dimension Wealth LLC bought a new stake in Royal Caribbean Cruises during the fourth quarter valued at approximately $35,000. Vise Technologies Inc. lifted its position in Royal Caribbean Cruises by 121.6% during the fourth quarter. Vise Technologies Inc. now owns 6,036 shares of the company’s stock valued at $1,392,000 after purchasing an additional 3,312 shares during the last quarter. Gordian Capital Singapore Pte Ltd lifted its position in Royal Caribbean Cruises by 95.8% during the fourth quarter. Gordian Capital Singapore Pte Ltd now owns 9,912 shares of the company’s stock valued at $2,289,000 after purchasing an additional 4,850 shares during the last quarter. Finally, Pinkerton Retirement Specialists LLC lifted its position in Royal Caribbean Cruises by 173.9% during the fourth quarter. Pinkerton Retirement Specialists LLC now owns 5,024 shares of the company’s stock valued at $1,159,000 after purchasing an additional 3,190 shares during the last quarter. 87.53% of the stock is currently owned by institutional investors.

Royal Caribbean Cruises Company Profile

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.