Stock Traders Make Significant Purchases of Royal Caribbean Cruises Call Options

Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) experienced notable options trading activity on Thursday, with traders acquiring a substantial 41,401 call options for the stock. This surge in call options purchasing marks a remarkable increase of approximately 387% compared to the average daily volume of 8,501 call options.

Performance of Royal Caribbean Cruises Stock

On Thursday, Royal Caribbean Cruises saw its stock price decrease by $1.84, bringing it to $238.46. The trading volume for the day was 420,327 shares, which is notably lower than its average volume of 2,319,946 shares. Currently, the company has a market capitalization of $64.12 billion, a price-to-earnings (P/E) ratio of 24.51, and a price-to-earnings-growth (PEG) ratio of 0.65. Additionally, the stock holds a beta of 2.60, indicating higher volatility compared to the market.

Royal Caribbean Cruises has a one-year low of $113.10 and a one-year high of $258.70. Currently, the stock's 50-day moving average is at $229.48, while the 200-day moving average stands at $186.93.

Recent Earnings Reports

The company recently released its quarterly earnings results on October 29th. It reported earnings per share (EPS) of $5.20 for the quarter, which exceeded analysts' expectations that set the estimate at $5.05. The company achieved a net margin of 16.21% and a robust return on equity of 52.92%. During this period, Royal Caribbean Cruises generated $4.89 billion in revenue, meeting analyst predictions. Comparatively, the revenue represented a 17.5% increase from the same quarter a year earlier, when the business reported an EPS of $3.85. Analysts forecast that Royal Caribbean Cruises will achieve an EPS of 11.65 for the current fiscal year.

Dividend Announcements

Recently, the company also announced a quarterly dividend that will be distributed to shareholders on January 13th. Shareholders of record as of December 27th will receive a dividend of $0.55 per share, leading to an annualized dividend of $2.20 and a yield of 0.92%. The company's payout ratio is notably low at 22.61%.

Insider Trading Activity

On November 19th, Director Arne Alexander Wilhelmsen sold 230,000 shares of stock at an average price of $233.62, amounting to a total sale of $53,732,600. This divestment reduced his holdings by 1.22%, leaving him with 18,556,860 shares valued at approximately $4.34 billion. Additionally, Director Richard D. Fain sold 25,000 shares on October 30th for $5,250,500. This transaction represented a 10.89% reduction in his stock ownership. In the past three months, insiders have sold a total of 404,332 shares for a cumulative value of nearly $94.3 million, and corporate insiders collectively own 7.95% of the company's stock.

Institutional Investor Insights

Several large investors have adjusted their stakes in Royal Caribbean Cruises recently. Dimensional Fund Advisors LP increased its holdings by 24.3% during the second quarter, accumulating 2,048,501 shares valued at $326.6 million after adding 400,565 shares. D1 Capital Partners L.P. also increased its position by 3.8% during the third quarter, owning 1,570,262 shares worth $278.5 million after acquiring an additional 58,159 shares. Similarly, Swiss National Bank raised its stake by 0.5% and now holds 725,638 shares valued at $128.7 million. Other institutional investors, such as Disciplined Growth Investors Inc. MN and APG Asset Management N.V., also increased their ownership in the company.

Analyst Ratings and Forecasts

Wall Street analysts have differing views on Royal Caribbean Cruises' future performance. The firm StockNews.com upgraded its rating from "sell" to "hold" on November 26th. Tigress Financial boosted its price target from $210 to $270 and assigned a "buy" rating on November 7th. Wells Fargo raised its target from $180 to $232, while JPMorgan Chase increased its price target from $213 to $243, maintaining an "overweight" rating. Lastly, The Goldman Sachs Group elevated its price target to $275, giving the stock a "buy" rating. Currently, there are three analysts with a hold rating and fourteen with a buy rating on the stock, resulting in an average rating of "Moderate Buy" with a price target set at $239.75.

About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd. is a prominent cruise company that operates globally, managing various brands, including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises across a range of itineraries. As of February 21, 2024, the company operates a fleet of 65 ships, providing a diverse array of cruising options for travelers.

Royal, Caribbean, Options