Carnival (NYSE:CCL) Shares Down 7.6% After Analyst Downgrade

Carnival Corporation (NYSE:CCL)’s stock price traded down 7.6% during trading on Monday after Stifel Nicolaus lowered their price target on the stock from $40.00 to $35.00. Stifel Nicolaus currently has a buy rating on the stock. Carnival traded as low as $23.47 and last traded at $23.82. Approximately 12,515,803 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 21,107,791 shares. The stock had previously closed at $25.79.

CCL has been the topic of several other research reports. Argus reaffirmed a “buy” rating and set a $35.00 target price on shares of Carnival in a report on Monday, December 22nd. Barclays lowered their price target on shares of Carnival from $37.00 to $36.00 and set an “overweight” rating for the company in a research note on Wednesday, December 17th. UBS Group raised their price objective on Carnival from $37.00 to $38.00 and gave the company a “buy” rating in a research note on Monday, January 12th. Truist Financial lifted their price objective on Carnival from $31.00 to $34.00 and gave the stock a “hold” rating in a report on Thursday, January 22nd. Finally, Mizuho boosted their target price on Carnival from $37.00 to $38.00 and gave the company an “outperform” rating in a research note on Monday, December 22nd. Nineteen research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $34.87.

Trending Headlines about Carnival

Here are the key news stories impacting Carnival this week:

• Positive Sentiment: Princess Cruises (a Carnival brand) announced a 2028 115-day World Cruise — a premium, demand-focused itinerary that can support higher yields and advance bookings for the brand. Princess Announces 2028 World Cruise
• Neutral Sentiment: Coverage noting Carnival’s role in travel/hospitality allocations (S&P 500 fund presence) can support structural demand from index flows, but it’s a longer-term, mixed impact versus near-term fuel/earnings risk. Carnival Hospitality Travel Presence In S&P 500 Fund
• Negative Sentiment: Zacks Research downgraded Carnival from “strong-buy” to “hold,” removing a prior positive catalyst and likely reducing buy-side conviction in the near term. Zacks Downgrade
• Negative Sentiment: Analysts and outlets highlight that Carnival does not hedge its fuel costs; the recent oil spike (tied to Middle East conflict) exposes Carnival to rising operating expenses and margin compression versus hedged peers. This is the primary reason for today’s selloff. Oil Shock Exposes Unhedged Fuel Costs
• Negative Sentiment: Market commentary notes cruise lines were already facing softening demand/valuation pressure before the Iran conflict; the geopolitical shock amplified an ongoing sector slowdown. That broader narrative is weighing on CCL. MarketWatch: Cruise Sector Weakness
• Negative Sentiment: Multiple market outlets (AAII, 247WallStreet, Benzinga) report steep intraday declines for Carnival tied to surging oil prices and geopolitical risk—reinforcing a short-term risk-off environment for travel names. AAII: Why CCL Is Down 247WallStreet: Stocks Slammed Benzinga: Stock Falls on Oil

Hedge Funds Weigh In On Carnival

Hedge funds have recently modified their holdings of the company. Empirical Financial Services LLC d.b.a. Empirical Wealth Management bought a new stake in Carnival in the third quarter valued at $1,291,000. National Pension Service raised its holdings in Carnival by 10.8% in the 3rd quarter. National Pension Service now owns 2,795,560 shares of the company’s stock worth $80,820,000 after purchasing an additional 272,452 shares in the last quarter. Aviva PLC raised its holdings in Carnival by 1,921.4% in the 2nd quarter. Aviva PLC now owns 785,724 shares of the company’s stock worth $22,095,000 after purchasing an additional 746,854 shares in the last quarter. Mane Global Capital Management LP purchased a new stake in shares of Carnival in the 2nd quarter worth about $55,952,000. Finally, Generali Asset Management SPA SGR bought a new stake in shares of Carnival during the 3rd quarter valued at about $1,422,000. Hedge funds and other institutional investors own 67.19% of the company’s stock.

Carnival Price Performance

The company has a current ratio of 0.32, a quick ratio of 0.28 and a debt-to-equity ratio of 1.96. The business’s 50 day moving average price is $30.55 and its two-hundred day moving average price is $29.44. The stock has a market cap of $32.41 billion, a P/E ratio of 13.08, a price-to-earnings-growth ratio of 0.97 and a beta of 2.42.

Carnival (NYSE:CCL) last released its quarterly earnings results on Friday, December 19th. The company reported $0.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.25 by $0.09. The company had revenue of $6.33 billion during the quarter, compared to the consensus estimate of $6.38 billion. Carnival had a net margin of 10.37% and a return on equity of 28.39%. Carnival’s revenue was up 6.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.14 earnings per share. Carnival has set its Q1 2026 guidance at 0.170-0.170 EPS and its FY 2026 guidance at 2.480-2.48 EPS. As a group, sell-side analysts expect that Carnival Corporation will post 1.77 earnings per share for the current fiscal year.

Carnival Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Friday, February 13th were given a dividend of $0.15 per share. The ex-dividend date was Friday, February 13th. This represents a $0.60 annualized dividend and a dividend yield of 2.3%. Carnival’s payout ratio is currently 30.00%.

About Carnival

Carnival Corporation (NYSE: CCL) is a global cruise operator that provides leisure travel services through a portfolio of passenger cruise brands. The company’s core business is operating cruise ships that offer multi-night voyages and associated vacation services, including onboard accommodations, dining, entertainment, spa and wellness offerings, casinos, youth programs, and organized shore excursions. Carnival markets cruise vacations to a broad range of consumers, from value-focused travelers to premium and luxury segments, through differentiated brand positioning and onboard experiences.

Its operating structure comprises multiple well-known cruise brands that target distinct geographic and demographic markets.