Royal Caribbean Cruises (NYSE:RCL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Wednesday. The firm presently has a $142.00 target price on the stock. Zacks Investment Research‘s price objective suggests a potential upside of 12.03% from the stock’s previous close.
According to Zacks, “Royal Caribbean is currently benefiting from strong booking trends and capacity growth along with its profitability initiatives. The company’s shares have outpaced the industry on a year to date basis. Going forward, we are particularly positive on the company’s new three-year program — 20/20 Vision — designed to drive performance. It leverages the culture and the discipline instilled by Double-Double program while including a broader set of goals. The company’s sailings are likely to continue performing strongly in the long term, given strong bookings trends. However, higher costs might hurt the company’s profitability. Further, lingering global uncertainties in key operating regions along with negative currency translation remain concerns. Estimate revisions for 2018 earnings have been stable over the last 60 days.”
A number of other equities research analysts have also commented on RCL. SunTrust Banks upped their price target on Royal Caribbean Cruises to $149.00 and gave the company a “buy” rating in a research report on Wednesday. Berenberg Bank upgraded Royal Caribbean Cruises from a “hold” rating to a “buy” rating in a research report on Thursday, January 11th. ValuEngine lowered Royal Caribbean Cruises from a “buy” rating to a “hold” rating in a research report on Wednesday, January 3rd. Wedbush reiterated an “outperform” rating and issued a $139.00 price target (up previously from $129.00) on shares of Royal Caribbean Cruises in a research report on Wednesday, November 8th. Finally, Wells Fargo & Co reiterated an “outperform” rating and issued a $135.00 price target (up previously from $128.00) on shares of Royal Caribbean Cruises in a research report on Monday, November 6th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company’s stock. Royal Caribbean Cruises has an average rating of “Buy” and an average target price of $128.54.
Royal Caribbean Cruises (NYSE:RCL) last released its quarterly earnings results on Tuesday, November 7th. The company reported $3.49 EPS for the quarter, beating analysts’ consensus estimates of $3.43 by $0.06. Royal Caribbean Cruises had a return on equity of 16.64% and a net margin of 18.41%. The firm had revenue of $2.57 billion for the quarter, compared to analyst estimates of $2.57 billion. During the same quarter in the previous year, the company posted $3.20 EPS. The business’s revenue was up .2% on a year-over-year basis. sell-side analysts anticipate that Royal Caribbean Cruises will post 7.39 earnings per share for the current fiscal year.
In related news, CEO Richard D. Fain sold 20,000 shares of the company’s stock in a transaction dated Monday, November 13th. The stock was sold at an average price of $123.76, for a total transaction of $2,475,200.00. Following the sale, the chief executive officer now owns 895,416 shares in the company, valued at approximately $110,816,684.16. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 15.30% of the stock is owned by corporate insiders.
Several institutional investors have recently made changes to their positions in RCL. Ameriprise Financial Inc. raised its stake in Royal Caribbean Cruises by 105.3% during the 3rd quarter. Ameriprise Financial Inc. now owns 3,378,863 shares of the company’s stock worth $400,541,000 after buying an additional 1,732,995 shares during the period. American Century Companies Inc. raised its stake in Royal Caribbean Cruises by 158.3% during the 3rd quarter. American Century Companies Inc. now owns 1,373,175 shares of the company’s stock worth $162,776,000 after buying an additional 841,498 shares during the period. Vanguard Group Inc. raised its stake in Royal Caribbean Cruises by 4.1% during the 2nd quarter. Vanguard Group Inc. now owns 17,178,558 shares of the company’s stock worth $1,876,413,000 after buying an additional 673,608 shares during the period. Bank of Montreal Can raised its stake in Royal Caribbean Cruises by 71.1% during the 4th quarter. Bank of Montreal Can now owns 1,241,654 shares of the company’s stock worth $148,103,000 after buying an additional 515,962 shares during the period. Finally, Bank of New York Mellon Corp raised its stake in Royal Caribbean Cruises by 34.1% during the 3rd quarter. Bank of New York Mellon Corp now owns 1,692,957 shares of the company’s stock worth $200,683,000 after buying an additional 430,521 shares during the period. Institutional investors own 73.23% of the company’s stock.
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About Royal Caribbean Cruises
Royal Caribbean Cruises Ltd. is a cruise company. The Company owns and operates three global cruise brands: Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises (Global Brands). The Company also own joint venture interest in the German brand TUI Cruises, interest in the Spanish brand Pullmantur and interest in the Chinese brand SkySea Cruises (collectively, Partner Brands).
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