Royal Caribbean Cruises Target of Unusually High Options Trading (NYSE:RCL)

Royal Caribbean Cruises Ltd. (NYSE:RCL) was the recipient of unusually large options trading activity on Friday. Stock investors purchased 14,920 put options on the stock. This represents an increase of 50% compared to the typical volume of 9,917 put options.

Insider Activity at Royal Caribbean Cruises

In related news, Director Arne Alexander Wilhelmsen sold 356,026 shares of the company’s stock in a transaction dated Thursday, February 26th. The shares were sold at an average price of $318.39, for a total value of $113,355,118.14. Following the transaction, the director directly owned 16,681,386 shares in the company, valued at approximately $5,311,186,488.54. This represents a 2.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Jason T. Liberty sold 90,910 shares of the stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $326.81, for a total value of $29,710,297.10. Following the sale, the chief executive officer directly owned 218,822 shares in the company, valued at $71,513,217.82. This represents a 29.35% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 1,967,319 shares of company stock worth $626,681,935 in the last ninety days. 6.95% of the stock is owned by company insiders.

Institutional Investors Weigh In On Royal Caribbean Cruises

Hedge funds and other institutional investors have recently modified their holdings of the stock. Montag A & Associates Inc. lifted its stake in Royal Caribbean Cruises by 184.4% during the fourth quarter. Montag A & Associates Inc. now owns 91 shares of the company’s stock worth $25,000 after purchasing an additional 59 shares during the last quarter. Ares Financial Consulting LLC purchased a new position in shares of Royal Caribbean Cruises in the 4th quarter worth about $26,000. University of Texas Texas AM Investment Management Co. bought a new position in shares of Royal Caribbean Cruises during the 4th quarter valued at about $26,000. Kemnay Advisory Services Inc. purchased a new position in shares of Royal Caribbean Cruises during the 4th quarter valued at about $27,000. Finally, Quattro Advisors LLC purchased a new position in shares of Royal Caribbean Cruises during the 4th quarter valued at about $27,000. 87.53% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have commented on RCL. Wells Fargo & Company lifted their target price on Royal Caribbean Cruises from $373.00 to $383.00 and gave the stock an “overweight” rating in a report on Sunday, February 1st. Tigress Financial lifted their price target on shares of Royal Caribbean Cruises from $415.00 to $425.00 and gave the company a “buy” rating in a research note on Friday, February 6th. Jefferies Financial Group increased their target price on Royal Caribbean Cruises from $275.00 to $334.00 and gave the stock a “hold” rating in a report on Friday, January 30th. TD Cowen reissued a “buy” rating on shares of Royal Caribbean Cruises in a research report on Tuesday, January 13th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Royal Caribbean Cruises from $371.00 to $376.00 and gave the company an “overweight” rating in a research note on Monday, March 16th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $353.30.

Royal Caribbean Cruises Stock Performance

Shares of RCL stock traded down $11.99 during trading on Friday, hitting $262.01. The company’s stock had a trading volume of 2,217,160 shares, compared to its average volume of 2,546,819. The company has a market cap of $70.88 billion, a PE ratio of 16.78, a P/E/G ratio of 0.91 and a beta of 1.87. The company has a current ratio of 0.18, a quick ratio of 0.16 and a debt-to-equity ratio of 1.77. The business has a fifty day moving average of $300.60 and a 200-day moving average of $295.30. Royal Caribbean Cruises has a 52 week low of $164.01 and a 52 week high of $366.50.

Royal Caribbean Cruises (NYSE:RCL) last released its earnings results on Thursday, January 29th. The company reported $2.80 earnings per share for the quarter, meeting analysts’ consensus estimates of $2.80. Royal Caribbean Cruises had a net margin of 23.80% and a return on equity of 45.06%. The firm had revenue of $4.26 billion during the quarter, compared to the consensus estimate of $4.28 billion. During the same period in the prior year, the firm earned $1.63 EPS. The company’s revenue was up 13.2% compared to the same quarter last year. As a group, research analysts anticipate that Royal Caribbean Cruises will post 14.9 earnings per share for the current year.

Royal Caribbean Cruises Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, April 3rd. Stockholders of record on Friday, March 6th will be issued a $1.50 dividend. The ex-dividend date of this dividend is Friday, March 6th. This is an increase from Royal Caribbean Cruises’s previous quarterly dividend of $1.00. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.3%. Royal Caribbean Cruises’s dividend payout ratio is 38.44%.

Royal Caribbean Cruises announced that its Board of Directors has initiated a share repurchase program on Wednesday, December 10th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the company to buy up to 2.6% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its stock is undervalued.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises (NYSE: RCL), operating as part of the Royal Caribbean Group, is a global cruise company that develops, markets and operates passenger cruise ships. The company operates multiple consumer-facing cruise brands that offer short- and long-duration itineraries and a range of onboard experiences. Its core activities include itineraries and voyage operations, guest services and hospitality, onboard food and beverage, entertainment and recreation programming, and the commercial activities needed to sell and support cruises through both direct and travel‑agent channels.

Royal Caribbean’s ships serve a broad set of geographies worldwide, regularly deploying vessels in the Caribbean, North America (including Alaska), Europe, Asia, Australia and South America.