Calamos Wealth Management LLC has significantly reduced its investment in Royal Caribbean Cruises Ltd. (NYSE:RCL), selling 126,302 shares during the third quarter. This move decreased Calamos’s stake by 73.6%, leaving the firm with 45,211 shares valued at approximately $14.63 million as reported in its recent filing with the Securities and Exchange Commission.
The decision comes as part of a broader trend among institutional investors. Several other firms have recently altered their positions in Royal Caribbean. For instance, Opal Wealth Advisors LLC acquired a new stake valued at around $27,000, while both Oliver Lagore Vanvalin Investment Group and 1 North Wealth Services LLC invested approximately $31,000 each. Additionally, Evolution Wealth Management Inc. and Trust Co. of Toledo NA OH also took new positions, with valuations of $31,000 and $32,000, respectively. Currently, approximately 87.53% of Royal Caribbean’s stock is held by institutional investors and hedge funds.
Analyst Ratings and Stock Performance
Royal Caribbean Cruises has been the subject of various analyst evaluations recently. On October 28, William Blair reiterated an “outperform” rating for the stock. This was closely followed by Susquehanna, which set a price target of $350.00 while issuing a “positive” rating. In contrast, Jefferies Financial Group lowered its price objective from $286.00 to $275.00, maintaining a “hold” rating. Mizuho adjusted its target from $372.00 to $362.00, while Stifel Nicolaus also revised its target down from $420.00 to $400.00.
The stock currently enjoys an average rating of “Moderate Buy” with a consensus price target of $324.82. As of the latest trading day on Wednesday, Royal Caribbean shares opened at $281.65, reflecting a 0.4% decline. The stock has seen a yearly low of $164.01 and a high of $366.50.
Financial Highlights and Future Guidance
In its latest earnings report released on October 28, Royal Caribbean Cruises reported earnings per share (EPS) of $5.75, surpassing the consensus estimate of $5.68 by $0.07. The company achieved a net margin of 23.33% and a return on equity of 44.68%. Revenue for the quarter was recorded at $5.14 billion, slightly below the predicted $5.16 billion, but representing a year-over-year increase of 5.2%.
Looking ahead, Royal Caribbean has set its fiscal year 2025 guidance at 15.580-15.630 EPS and its fourth quarter guidance at 2.740-2.790 EPS. Analysts project an EPS of 14.9 for the current year.
The company also announced a quarterly dividend of $1.00, payable on January 14, 2025, to shareholders of record as of December 26, 2024. This amounts to an annualized dividend of $4.00 and a yield of 1.4%. The dividend payout ratio currently stands at 26.90%.
In a further development, Royal Caribbean’s board approved a stock repurchase program on December 10, 2024, allowing the company to buy back up to $2.00 billion in shares, reflecting confidence in the stock’s value.
In insider trading news, Director Maritza Gomez Montiel sold 1,100 shares at an average price of $281.76 on November 3, amounting to a total of $309,936. Following this transaction, Montiel retains 14,234 shares valued at around $4.01 million, indicating a 7.17% decrease in her ownership.
Royal Caribbean Cruises operates as part of the Royal Caribbean Group, providing cruise experiences across multiple brands and regions. The company focuses on a variety of itineraries and onboard experiences, serving customers worldwide in regions such as the Caribbean, North America, Europe, Asia, Australia, and South America.
