Why Royal Caribbean Group (RCL) Stock Could See Much Higher Prices Ahead

Royal Caribbean Group (NYSE: RCL) is -48.44% lower on its value in year-to-date trading and has touched a low of $19.25 and a high of $135.32 in the current 52-week trading range. The RCL stock was last observed hovering at around $70.12 in the last trading session, with the day’s loss setting it -1.28% off its average median price target of $53.50 for the next 12 months. It is also 13.95% off the consensus price target high of $80.00 offered by 17 analysts, but current levels are -102.47% lower than the price target low of $34.00 for the same period.

Currently trading at $68.84, the stock is 17.24% and 27.59% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 8.19 million and changing -1.83% at the moment leaves the stock -7.51% off its SMA200. RCL registered -33.99% loss for a year compared to 6-month loss of -11.96%. The firm has a 50-day simple moving average (SMA 50) of $55.59 and a 200-day simple moving average (SMA200) of $52.02.

The stock witnessed a 41.33% gain in the last 1 month and extending the period to 3 months gives it a 22.93%, and is 6.84% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 4.96% over the week and 5.83% over the month.

Royal Caribbean Group (RCL) has around 85300 employees, a market worth around $14.04B and $7.91B in sales. Profit margin for the company is -24.40%. Distance from 52-week low is 257.61% and -49.13% from its 52-week high. The company has generated returns on investments over the last 12 months (9.10%).

Royal Caribbean Group (RCL) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Royal Caribbean Group (RCL) is a “Hold”. 17 analysts offering their recommendations for the stock have an average rating of 2.60, where 9 rate it as a Hold and 0 think it is a “Overweight”. 5 of the analysts rate the stock as a “Buy”. 1 analysts have rated the stock as a Sell or Underperform.

Royal Caribbean Group is expected to release its quarterly report on 10/23/2020 and quarterly earnings per share for the current quarter are estimated at -$5.14 with sales reaching $19.59M over the same period.The EPS is expected to grow by 4.50% this year, but quarterly earnings will post -77.20% year-over-year. Quarterly sales are estimated to shrink -99.40% in year-over-year returns.

Royal Caribbean Group (RCL) Top Institutional Holders

919 institutions hold shares in Royal Caribbean Group (RCL), with 39.6M shares held by insiders accounting for 18.45% while institutional investors hold 93.07% of the company’s shares. The shares outstanding are 209.39M, and float is at 176.12M with Short Float at 11.17%. Institutions hold 75.90% of the Float.

The top institutional shareholder in the company is Vanguard Group, Inc. (The) with over 18.47 million shares valued at $928.92 million. The investor’s holdings represent 8.60% of the RCL Shares outstanding. As of Jun 29, 2020, the second largest holder is Capital Research Global Investors with 16.48 million shares valued at $829.18 million to account for 7.68% of the shares outstanding. The other top investors are Blackrock Inc. which holds 11.91 million shares representing 5.55% and valued at over $598.94 million, while Canada Pension Plan Investment Board holds 3.77% of the shares totaling 8.1 million with a market value of $407.53 million.

Royal Caribbean Group (RCL) Insider Activity

A total of 10 insider transactions have happened at Royal Caribbean Group (RCL) in the last six months, with sales accounting for 8 and purchases happening 2 times. The most recent transaction is an insider sale by A WILHELMSEN A S, the company’s 10% Owner. SEC filings show that A WILHELMSEN A S sold 600,000 shares of the company’s common stock on Aug 25 at a price of $63.67 per share for a total of $38.2 million. Following the sale, the insider now owns 18.1 million shares.

Royal Caribbean Group disclosed in a document filed with the SEC on Aug 25 that Wilhelmsen Arne Alexander (Director) sold a total of 600,000 shares of the company’s common stock. The trade occurred on Aug 25 and was made at $63.67 per share for $38.2 million. Following the transaction, the insider now directly holds 23.13 million shares of the RCL stock.

Still, SEC filings show that on Aug 24, Wilhelmsen Arne Alexander (Director) disposed off 1,400,000 shares at an average price of $63.36 for $88.71 million. The insider now directly holds 23,734,512 shares of Royal Caribbean Group (RCL).

Royal Caribbean Group (RCL): Who are the competitors?

The company’s main competitors (and peers) include Marriott International Inc. (MAR) that is trading -18.36% down over the past 12 months. Carnival Corporation & Plc (CCL) is -62.61% down on the 1-year trading charts. Short interest in the company’s stock has fallen -22.87% from the last report on Jul 14, 2020 to stand at a total of 24.18 million short shares sold with a short interest ratio of 1.81.