Royal Caribbean Cruises (NYSE:RCL) Upgraded to “Buy” at Bank of America

Bank of America upgraded shares of Royal Caribbean Cruises (NYSE:RCL) from a neutral rating to a buy rating in a research note issued to investors on Monday morning, MarketBeat Ratings reports. Bank of America currently has $330.00 price target on the stock.

Several other analysts have also issued reports on the stock. Sanford C. Bernstein reiterated an “outperform” rating on shares of Royal Caribbean Cruises in a research note on Wednesday, September 23rd. UBS Group reissued a “buy” rating on shares of Royal Caribbean Cruises in a research report on Wednesday, September 23rd. William Blair restated an “outperform” rating on shares of Royal Caribbean Cruises in a report on Tuesday, July 28th. Weiss Ratings downgraded shares of Royal Caribbean Cruises from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, September 3rd. Finally, Wells Fargo & Company upped their price objective on shares of Royal Caribbean Cruises from $361.00 to $388.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Royal Caribbean Cruises has an average rating of “Moderate Buy” and an average price target of $357.80.

Royal Caribbean Cruises Stock Down 0.2%

Shares of NYSE:RCL opened at $242.30 on Monday. The stock has a market cap of $64.80 billion, a price-to-earnings ratio of 14.98, a PEG ratio of 0.80 and a beta of 1.74. The company has a quick ratio of 0.19, a current ratio of 0.21 and a debt-to-equity ratio of 2.03. Royal Caribbean Cruises has a 12-month low of $222.22 and a 12-month high of $356.39. The business’s 50 day moving average is $283.21 and its 200 day moving average is $281.49.

Royal Caribbean Cruises (NYSE:RCL) last released its quarterly earnings results on Tuesday, July 28th. The company reported $4.21 EPS for the quarter, beating analysts’ consensus estimates of $3.98 by $0.23. The business had revenue of $4.83 billion during the quarter, compared to analyst estimates of $4.82 billion. Royal Caribbean Cruises had a return on equity of 43.33% and a net margin of 23.54%.Royal Caribbean Cruises’s quarterly revenue was up 6.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $4.38 EPS. Royal Caribbean Cruises has set its FY 2026 guidance at 17.730-17.870 EPS and its Q3 2026 guidance at 6.260-6.360 EPS. On average, sell-side analysts forecast that Royal Caribbean Cruises will post 17.78 earnings per share for the current fiscal year.

Royal Caribbean Cruises Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th will be paid a $1.50 dividend. This represents a $6.00 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date is Thursday, September 17th. Royal Caribbean Cruises’s dividend payout ratio is 37.08%.

Insider Transactions at Royal Caribbean Cruises

In other news, CEO Michael Bayley sold 12,811 shares of the firm’s stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $315.99, for a total transaction of $4,048,147.89. Following the completion of the sale, the chief executive officer directly owned 45,297 shares of the company’s stock, valued at $14,313,399.03. This trade represents a 22.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 6.44% of the stock is owned by company insiders.

Hedge Funds Weigh In On Royal Caribbean Cruises

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Capital International Investors increased its holdings in Royal Caribbean Cruises by 9.8% during the fourth quarter. Capital International Investors now owns 36,165,358 shares of the company’s stock worth $10,088,156,000 after buying an additional 3,215,382 shares during the last quarter. BlackRock Inc. purchased a new position in Royal Caribbean Cruises in the second quarter valued at about $6,549,422,000. Capital Research Global Investors boosted its stake in Royal Caribbean Cruises by 4.8% in the fourth quarter. Capital Research Global Investors now owns 20,176,544 shares of the company’s stock valued at $5,627,669,000 after acquiring an additional 920,042 shares during the last quarter. State Street Corp grew its position in shares of Royal Caribbean Cruises by 2.6% during the 2nd quarter. State Street Corp now owns 10,689,134 shares of the company’s stock valued at $3,409,971,000 after acquiring an additional 270,930 shares during the period. Finally, Janus Henderson Group PLC grew its position in shares of Royal Caribbean Cruises by 23.9% during the 4th quarter. Janus Henderson Group PLC now owns 2,416,425 shares of the company’s stock valued at $673,990,000 after acquiring an additional 465,401 shares during the period. 87.53% of the stock is owned by hedge funds and other institutional investors.

More Royal Caribbean Cruises News

Here are the key news stories impacting Royal Caribbean Cruises this week:

• Positive Sentiment: Bank of America upgraded RCL from Neutral to Buy and set a $330 price target. The firm said the 26% pullback has brought the stock’s estimated 2027 enterprise-value-to-EBITDA multiple below 10x, versus a recent average near 12x, making the valuation more attractive. Royal Caribbean upgraded to Buy at Bank of America as selloff creates entry point
• Positive Sentiment: Deutsche Bank also raised Royal Caribbean to Buy from Hold, citing an attractive entry point for what it views as a high-quality cruise operator. Deutsche Bank lifts Royal Caribbean to Buy, sees attractive entry point
• Positive Sentiment: Analysts pointed to resilient travel demand and potential earnings growth from Royal Caribbean’s investment in Sandals Resorts, which could boost EBITDA despite broader macroeconomic risks. Royal Caribbean’s Sandals Investment Set to Boost EBITDA Despite Macro Risks
• Positive Sentiment: Tigress Financial reaffirmed its Buy rating and maintained a $425 price target, substantially above the current trading level. Royal Caribbean Cruises Stock Rating Reaffirmed as Buy by Tigress Financial
• Neutral Sentiment: The upgrades arrive ahead of Carnival’s earnings report, which could provide a broader read on cruise bookings, pricing, and consumer travel demand. Why Analysts Are Upgrading Royal Caribbean Right Before Carnival Earnings
• Negative Sentiment: Despite the improved analyst outlook, RCL remains well below its recent highs following the sharp selloff. Macro risks and the company’s elevated leverage remain potential sources of volatility.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd., now known as Royal Caribbean Group, is a global cruise company that operates vacation experiences through a portfolio of cruise brands. Its principal brands include Royal Caribbean International, Celebrity Cruises and Silversea Cruises, each serving different segments of the leisure travel market, from family-oriented cruises and large-scale resort-style ships to premium and luxury expedition voyages.

The company offers cruises to destinations around the world, including the Caribbean, Europe, Alaska, Asia, Australia, New Zealand and other international regions.