Increased Options Trading for Royal Caribbean Cruises

Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) experienced a notable surge in options trading activity on Thursday as stock traders acquired an impressive total of 41,401 call options for the stock. This marks a staggering increase of approximately 387% from the typical daily trading volume of 8,501 call options.

Current Stock Performance of Royal Caribbean Cruises

On the trading day in question, shares of RCL saw a decrease of $1.84, settling at $238.46. A total of 420,327 shares were exchanged, which is relatively lower compared to the average trading volume of 2,319,946 shares. The company boasts a market capitalization of $64.12 billion, a price-to-earnings (P/E) ratio of 24.51, a price-to-earnings-growth (PEG) ratio of 0.65, and a beta value of 2.60. 

Further examination of financial ratios reveals that Royal Caribbean Cruises maintains a quick ratio of 0.16, a current ratio of 0.19, and a debt-to-equity ratio of 2.63. Over the past year, the stock has fluctuated between a low of $113.10 and a high of $258.70. Its fifty-day moving average currently stands at $229.48, while the two-hundred-day moving average is at $186.93.

Recent Quarterly Earnings Report

Royal Caribbean Cruises recently released its quarterly earnings report on October 29th. The company posted earnings per share (EPS) of $5.20 for the quarter, exceeding the consensus estimate of $5.05 by $0.15. The company's net profit margin was recorded at 16.21%, with a return on equity of 52.92%. During the quarter, the company generated revenues of $4.89 billion, precisely matching analysts' expectations. This marks an increase of 17.5% in revenue compared to the same quarter from the previous year, during which the company had reported an EPS of $3.85. Analysts are forecasting an EPS of 11.65 for Royal Caribbean Cruises for the current fiscal year.

Dividend Declaration by Royal Caribbean Cruises

Recently, Royal Caribbean announced its quarterly dividend will be distributed on January 13th to shareholders on record by December 27th. The declared dividend of $0.55 per share results in an annualized dividend of $2.20, giving a yield of 0.92%. The company's payout ratio currently sits at 22.61%.

Insider Transactions

In recent developments regarding insider trading, Director Arne Alexander Wilhelmsen sold 230,000 shares of Royal Caribbean on November 19th, receiving an average price of $233.62 per share, totaling approximately $53.73 million. Despite this transaction, he retains ownership of 18,556,860 shares valued around $4.34 billion. This sale reflects a 1.22% reduction in his shares.

Additionally, on October 30th, Director Richard D. Fain sold 25,000 shares at an average price of $210.02, amounting to about $5.25 million. Following this sale, Fain owns 204,521 shares worth approximately $42.95 million, representing a decrease of 10.89% in ownership. In total, insiders have sold approximately 404,332 shares worth over $94 million in the past 90 days, with corporate insiders holding 7.95% of the company's stock.

Institutional Investors and Their Movements

Institutional activity surrounding Royal Caribbean has also seen notable adjustments. Dimensional Fund Advisors LP increased its stake by 24.3% in the second quarter, currently owning 2,048,501 shares valued at $326.62 million after acquiring an additional 400,565 shares. D1 Capital Partners L.P. expanded its position by 3.8% in the third quarter, now holding 1,570,262 shares valued at $278.50 million.

Swiss National Bank incremented its stake by 0.5% in the same quarter, possessing 725,638 shares worth about $128.70 million after purchasing 3,800 shares. Other institutional investors like Disciplined Growth Investors Inc. MN and APG Asset Management N.V. also increased their holdings during the third quarter.

Wall Street Analysts’ Forecasts

Market analysts continue to show optimism for Royal Caribbean Cruises, with several raising their price targets and ratings. StockNews.com upgraded its rating from "sell" to "hold". Tigress Financial lifted its price target to $270 and gave a "buy" rating. Wells Fargo increased its target from $180 to $232, citing an "overweight" rating. Other firms like JPMorgan and Goldman Sachs also revised their estimates upwards, reflecting a generally positive outlook among analysts.

Currently, the stock holds an average rating of "Moderate Buy" with a target price of approximately $239.75.

About Royal Caribbean Cruises Ltd.

Royal Caribbean Cruises Ltd. is a prominent cruise line company operating multiple brands, including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. As of February 2024, it operates 65 vessels across a variety of travel itineraries, providing a range of experiences to cruise passengers worldwide.

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