Norwegian Cruise Line (NYSE:NCLH) Shares Gap Up – Still a Buy?

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) gapped up prior to trading on Tuesday . The stock had previously closed at $21.49, but opened at $23.12. Norwegian Cruise Line shares last traded at $22.9540, with a volume of 15,718,123 shares changing hands.

More Norwegian Cruise Line News

Here are the key news stories impacting Norwegian Cruise Line this week:

• Positive Sentiment: Elliott disclosed a >10% stake and laid out a turnaround campaign, which investors interpret as a catalyst for faster cost cuts, asset optimization or board changes that could unlock value. Investopedia
• Positive Sentiment: Market reaction: multiple reports (Barron’s, Schaeffer’s) show the stock rallying on the disclosure and trading well above average volume as investors price in potential strategic changes. Barron’s
• Neutral Sentiment: NCLH announced an agreement with Fincantieri for three new ships (one per brand) to be delivered 2036–2037; management says initial capital outlays are modest and near‑term leverage/ cashflow won’t be materially affected. This supports long‑term growth but offers limited near‑term revenue upside. GlobeNewswire
• Neutral Sentiment: Analysts and coverage are revisiting NCLH’s valuation and leadership after recent management moves; this could recalibrate price targets but is not an immediate earnings event. Yahoo Finance
• Negative Sentiment: Risk and uncertainty: the activist campaign could lead to a costly proxy fight or short‑term disruption, and NCLH’s high leverage and future ship financing requirements (reliance on Export Credit Agency financing) remain potential negatives for credit profile and dilution risk. WSJ

Wall Street Analyst Weigh In

Several brokerages recently issued reports on NCLH. The Goldman Sachs Group downgraded Norwegian Cruise Line from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $23.00 to $21.00 in a research report on Tuesday, December 9th. JPMorgan Chase & Co. reissued a “neutral” rating and issued a $20.00 price target (down from $28.00) on shares of Norwegian Cruise Line in a report on Friday. Truist Financial decreased their price objective on Norwegian Cruise Line from $31.00 to $26.00 and set a “buy” rating on the stock in a research note on Tuesday, December 2nd. Weiss Ratings reissued a “hold (c)” rating on shares of Norwegian Cruise Line in a research note on Thursday, January 22nd. Finally, Jefferies Financial Group downgraded shares of Norwegian Cruise Line from a “buy” rating to a “hold” rating and lowered their price target for the stock from $26.00 to $20.00 in a report on Monday, December 15th. Two research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $26.32.

Norwegian Cruise Line Stock Up 12.0%

The stock has a fifty day moving average of $22.29 and a two-hundred day moving average of $22.60. The company has a quick ratio of 0.17, a current ratio of 0.19 and a debt-to-equity ratio of 6.22. The stock has a market cap of $10.96 billion, a price-to-earnings ratio of 17.67, a PEG ratio of 0.54 and a beta of 2.06.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Capital International Investors boosted its holdings in Norwegian Cruise Line by 7.1% in the fourth quarter. Capital International Investors now owns 56,177,669 shares of the company’s stock valued at $1,253,886,000 after purchasing an additional 3,728,929 shares during the last quarter. Ariel Investments LLC boosted its stake in Norwegian Cruise Line by 36.2% during the 2nd quarter. Ariel Investments LLC now owns 12,369,377 shares of the company’s stock valued at $250,851,000 after acquiring an additional 3,288,207 shares during the last quarter. Freestone Grove Partners LP increased its position in shares of Norwegian Cruise Line by 338.8% in the 3rd quarter. Freestone Grove Partners LP now owns 3,690,333 shares of the company’s stock worth $90,893,000 after purchasing an additional 2,849,349 shares during the last quarter. Morgan Stanley raised its stake in shares of Norwegian Cruise Line by 43.6% in the 4th quarter. Morgan Stanley now owns 8,520,548 shares of the company’s stock valued at $190,179,000 after purchasing an additional 2,586,395 shares in the last quarter. Finally, Norges Bank acquired a new position in Norwegian Cruise Line in the second quarter worth about $49,620,000. Institutional investors and hedge funds own 69.58% of the company’s stock.

About Norwegian Cruise Line

Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) is a global cruise operator offering a portfolio of premium brands that includes Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. The company provides sea voyages and related onboard services such as dining, entertainment, shore excursions and destination experiences. Its fleet of modern vessels sails to more than 400 destinations across all seven continents, serving leisure travelers with itineraries ranging from short Caribbean getaways to extended world voyages.

Founded in 1966 by Knut Kloster and Ted Arison, the company pioneered the concept of “Freestyle Cruising,” which allows passengers greater flexibility in dining schedules, entertainment choices and onboard activities.