Traders Buy Large Volume of Royal Caribbean Cruises Put Options (NYSE:RCL)

Royal Caribbean Cruises Ltd. (NYSE:RCL) was the target of some unusual options trading on Monday. Stock traders acquired 17,883 put options on the company. This represents an increase of approximately 116% compared to the average daily volume of 8,274 put options.

Wall Street Analyst Weigh In

RCL has been the topic of a number of recent analyst reports. The Goldman Sachs Group increased their price target on shares of Royal Caribbean Cruises from $310.00 to $370.00 and gave the stock a “buy” rating in a report on Friday, January 30th. UBS Group lowered their target price on shares of Royal Caribbean Cruises from $353.00 to $304.00 and set a “buy” rating on the stock in a research note on Wednesday, November 12th. TD Cowen restated a “buy” rating on shares of Royal Caribbean Cruises in a research report on Tuesday, January 13th. Wall Street Zen lowered Royal Caribbean Cruises from a “buy” rating to a “hold” rating in a research note on Saturday, November 1st. Finally, Royal Bank Of Canada set a $360.00 price target on Royal Caribbean Cruises in a research report on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $348.29.

Insiders Place Their Bets

In other Royal Caribbean Cruises news, CEO Michael W. Bayley sold 80,000 shares of the business’s stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $326.82, for a total value of $26,145,600.00. Following the completion of the transaction, the chief executive officer directly owned 58,108 shares of the company’s stock, valued at approximately $18,990,856.56. The trade was a 57.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Naftali Holtz sold 51,131 shares of the company’s stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $327.39, for a total value of $16,739,778.09. Following the completion of the sale, the chief financial officer owned 28,116 shares in the company, valued at approximately $9,204,897.24. This represents a 64.52% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 722,164 shares of company stock worth $233,668,845. 6.95% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Montag A & Associates Inc. raised its stake in shares of Royal Caribbean Cruises by 184.4% in the 4th quarter. Montag A & Associates Inc. now owns 91 shares of the company’s stock valued at $25,000 after acquiring an additional 59 shares during the period. Ares Financial Consulting LLC acquired a new stake in Royal Caribbean Cruises in the 4th quarter valued at approximately $26,000. University of Texas Texas AM Investment Management Co. purchased a new stake in Royal Caribbean Cruises in the fourth quarter valued at approximately $26,000. Kemnay Advisory Services Inc. acquired a new position in Royal Caribbean Cruises during the fourth quarter worth $27,000. Finally, Quattro Advisors LLC acquired a new position in Royal Caribbean Cruises during the 4th quarter worth about $27,000. 87.53% of the stock is currently owned by institutional investors and hedge funds.

Royal Caribbean Cruises Price Performance

Shares of NYSE:RCL traded down $11.03 during trading on Monday, reaching $304.06. The stock had a trading volume of 1,473,199 shares, compared to its average volume of 2,357,516. The company has a debt-to-equity ratio of 1.77, a quick ratio of 0.16 and a current ratio of 0.18. The business has a fifty day moving average price of $302.05 and a 200-day moving average price of $303.06. The stock has a market cap of $82.26 billion, a PE ratio of 19.47, a PEG ratio of 1.03 and a beta of 1.91. Royal Caribbean Cruises has a 1-year low of $164.01 and a 1-year high of $366.50.

Royal Caribbean Cruises (NYSE:RCL) last announced its quarterly earnings data on Thursday, January 29th. The company reported $2.80 earnings per share for the quarter, meeting analysts’ consensus estimates of $2.80. Royal Caribbean Cruises had a return on equity of 45.06% and a net margin of 23.80%.The company had revenue of $4.26 billion for the quarter, compared to analyst estimates of $4.28 billion. During the same quarter last year, the firm posted $1.63 EPS. The firm’s revenue for the quarter was up 13.2% on a year-over-year basis. On average, equities analysts forecast that Royal Caribbean Cruises will post 14.9 earnings per share for the current fiscal year.

Royal Caribbean Cruises Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 3rd. Investors of record on Friday, March 6th will be given a dividend of $1.50 per share. The ex-dividend date is Friday, March 6th. This is a boost from Royal Caribbean Cruises’s previous quarterly dividend of $1.00. This represents a $6.00 dividend on an annualized basis and a yield of 2.0%. Royal Caribbean Cruises’s dividend payout ratio (DPR) is presently 25.62%.

Royal Caribbean Cruises announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, December 10th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the company to buy up to 2.6% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises (NYSE: RCL), operating as part of the Royal Caribbean Group, is a global cruise company that develops, markets and operates passenger cruise ships. The company operates multiple consumer-facing cruise brands that offer short- and long-duration itineraries and a range of onboard experiences. Its core activities include itineraries and voyage operations, guest services and hospitality, onboard food and beverage, entertainment and recreation programming, and the commercial activities needed to sell and support cruises through both direct and travel‑agent channels.

Royal Caribbean’s ships serve a broad set of geographies worldwide, regularly deploying vessels in the Caribbean, North America (including Alaska), Europe, Asia, Australia and South America.