Resona Asset Management Co. Ltd. has reduced its stake in Royal Caribbean Cruises Ltd. (NYSE: RCL) by 5.7%, as disclosed in the company’s latest filing with the Securities and Exchange Commission. The institutional investor now holds 66,687 shares after selling 4,032 shares during the third quarter. As of the end of the quarter, Resona’s holdings in Royal Caribbean were valued at approximately $21,579,000.
Several other institutional investors have also adjusted their positions in Royal Caribbean. Vanguard Personalized Indexing Management LLC increased its stake by 12.9% during the second quarter, bringing its total to 39,766 shares worth $12,453,000. Similarly, the California Public Employees Retirement System raised its holdings by 11.1%, now owning 433,018 shares valued at $135,595,000.
Other notable transactions include WESPAC Advisors LLC and Marion Wealth Management, which established new positions valued at approximately $522,000 and $291,000, respectively. Aberdeen Group plc also increased its stake by 6.3%, owning 137,099 shares valued at $42,802,000. Collectively, hedge funds and institutional investors control approximately 87.53% of Royal Caribbean’s stock.
Analysts Provide Mixed Ratings
Market analysts have recently commented on Royal Caribbean’s stock. Susquehanna set a target price of $350.00, issuing a “positive” rating on October 30, 2023. Conversely, JPMorgan Chase & Co. lowered its price target from $367.00 to $357.00 while maintaining an “overweight” rating. Mizuho adjusted their price target from $378.00 to $381.00, rating the stock as “outperform”.
William Blair reiterated an “outperform” rating, and TD Cowen reaffirmed a “buy” rating. Currently, one analyst has assigned a Strong Buy rating, nineteen analysts have given a Buy rating, and four have issued a Hold rating. The consensus rating stands at “Moderate Buy” with a target price of $327.68, according to MarketBeat.com.
Royal Caribbean’s Financial Performance
Royal Caribbean’s shares opened at $286.18 on Friday. Over the past year, the stock has fluctuated between a low of $164.01 and a high of $366.50. The company has a market capitalization of $78.04 billion, a price-to-earnings ratio of 19.25, and a price-to-earnings-growth ratio of 0.80.
In its latest quarterly earnings report released on October 28, Royal Caribbean reported earnings per share of $5.75, exceeding analysts’ expectations of $5.68. The company’s revenue for the quarter was $5.14 billion, slightly below the anticipated $5.16 billion. The revenue marked a 5.2% increase compared to the same quarter last year.
The company has provided guidance for fiscal year 2025, projecting earnings per share between $15.580 and $15.630, and for the fourth quarter of 2025, between $2.740 and $2.790.
Royal Caribbean has also announced a quarterly dividend of $1.00 per share, paid on January 14, 2024, with an annualized dividend yield of 1.4%. The company’s dividend payout ratio currently stands at 26.90%. Furthermore, the Board of Directors has approved a stock buyback plan that allows for the repurchase of up to $2.00 billion in shares, equating to approximately 2.6% of its total shares.
In insider trading developments, Director Maritza Gomez Montiel sold 1,100 shares on November 3, 2023, at an average price of $281.76, amounting to a total value of $309,936. Following the transaction, she holds 14,234 shares valued at around $4,010,571.84, which represents a 7.17% decrease in her holdings.
Overall, Royal Caribbean Cruises Ltd. continues to demonstrate significant institutional interest, alongside a solid financial performance that appeals to investors and analysts alike.
