Carnival (NYSE:CCL) Trading Down 7.6% on Analyst Downgrade

Shares of Carnival Corporation (NYSE:CCL) traded down 7.6% during trading on Monday after Stifel Nicolaus lowered their price target on the stock from $40.00 to $35.00. Stifel Nicolaus currently has a buy rating on the stock. Carnival traded as low as $23.47 and last traded at $23.82. 12,515,803 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 21,107,791 shares. The stock had previously closed at $25.79.

Other equities analysts also recently issued research reports about the company. Zacks Research downgraded Carnival from a “strong-buy” rating to a “hold” rating in a research note on Monday. The Goldman Sachs Group reaffirmed a “buy” rating and set a $34.00 price objective on shares of Carnival in a report on Monday, December 22nd. Wells Fargo & Company boosted their price target on shares of Carnival from $38.00 to $40.00 and gave the company an “overweight” rating in a research report on Thursday, March 5th. TD Cowen reaffirmed a “buy” rating on shares of Carnival in a report on Tuesday, January 13th. Finally, Citigroup increased their target price on Carnival from $36.00 to $39.00 and gave the stock a “buy” rating in a research report on Monday, December 22nd. Nineteen research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $34.87.

Trending Headlines about Carnival

Here are the key news stories impacting Carnival this week:

• Positive Sentiment: Princess Cruises (a Carnival brand) announced a 2028 115-day World Cruise — a premium, demand-focused itinerary that can support higher yields and advance bookings for the brand. Princess Announces 2028 World Cruise
• Neutral Sentiment: Coverage noting Carnival’s role in travel/hospitality allocations (S&P 500 fund presence) can support structural demand from index flows, but it’s a longer-term, mixed impact versus near-term fuel/earnings risk. Carnival Hospitality Travel Presence In S&P 500 Fund
• Negative Sentiment: Zacks Research downgraded Carnival from “strong-buy” to “hold,” removing a prior positive catalyst and likely reducing buy-side conviction in the near term. Zacks Downgrade
• Negative Sentiment: Analysts and outlets highlight that Carnival does not hedge its fuel costs; the recent oil spike (tied to Middle East conflict) exposes Carnival to rising operating expenses and margin compression versus hedged peers. This is the primary reason for today’s selloff. Oil Shock Exposes Unhedged Fuel Costs
• Negative Sentiment: Market commentary notes cruise lines were already facing softening demand/valuation pressure before the Iran conflict; the geopolitical shock amplified an ongoing sector slowdown. That broader narrative is weighing on CCL. MarketWatch: Cruise Sector Weakness
• Negative Sentiment: Multiple market outlets (AAII, 247WallStreet, Benzinga) report steep intraday declines for Carnival tied to surging oil prices and geopolitical risk—reinforcing a short-term risk-off environment for travel names. AAII: Why CCL Is Down 247WallStreet: Stocks Slammed Benzinga: Stock Falls on Oil

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its stake in shares of Carnival by 0.3% in the fourth quarter. Vanguard Group Inc. now owns 128,133,282 shares of the company’s stock worth $3,913,190,000 after purchasing an additional 368,445 shares during the last quarter. State Street Corp increased its stake in shares of Carnival by 1.5% during the fourth quarter. State Street Corp now owns 48,074,173 shares of the company’s stock valued at $1,468,185,000 after buying an additional 704,433 shares during the period. Barrow Hanley Mewhinney & Strauss LLC lifted its stake in Carnival by 0.8% in the third quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 36,109,629 shares of the company’s stock worth $1,043,929,000 after acquiring an additional 291,864 shares during the period. Causeway Capital Management LLC increased its position in Carnival by 9.6% during the 3rd quarter. Causeway Capital Management LLC now owns 31,912,001 shares of the company’s stock valued at $922,576,000 after purchasing an additional 2,783,927 shares during the period. Finally, Geode Capital Management LLC boosted its stake in shares of Carnival by 2.4% during the 4th quarter. Geode Capital Management LLC now owns 29,450,412 shares of the company’s stock valued at $896,104,000 after purchasing an additional 683,311 shares in the last quarter. Hedge funds and other institutional investors own 67.19% of the company’s stock.

Carnival Price Performance

The firm’s 50-day moving average is $30.55 and its 200-day moving average is $29.44. The company has a quick ratio of 0.28, a current ratio of 0.32 and a debt-to-equity ratio of 1.96. The company has a market cap of $32.41 billion, a PE ratio of 13.08, a PEG ratio of 0.97 and a beta of 2.42.

Carnival (NYSE:CCL) last released its earnings results on Friday, December 19th. The company reported $0.34 earnings per share for the quarter, topping analysts’ consensus estimates of $0.25 by $0.09. The firm had revenue of $6.33 billion for the quarter, compared to the consensus estimate of $6.38 billion. Carnival had a net margin of 10.37% and a return on equity of 28.39%. The company’s revenue was up 6.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.14 EPS. Carnival has set its Q1 2026 guidance at 0.170-0.170 EPS and its FY 2026 guidance at 2.480-2.48 EPS. On average, equities analysts anticipate that Carnival Corporation will post 1.77 EPS for the current year.

Carnival Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Friday, February 13th were given a dividend of $0.15 per share. The ex-dividend date of this dividend was Friday, February 13th. This represents a $0.60 annualized dividend and a dividend yield of 2.3%. Carnival’s dividend payout ratio is presently 30.00%.

Carnival Company Profile

Carnival Corporation (NYSE: CCL) is a global cruise operator that provides leisure travel services through a portfolio of passenger cruise brands. The company’s core business is operating cruise ships that offer multi-night voyages and associated vacation services, including onboard accommodations, dining, entertainment, spa and wellness offerings, casinos, youth programs, and organized shore excursions. Carnival markets cruise vacations to a broad range of consumers, from value-focused travelers to premium and luxury segments, through differentiated brand positioning and onboard experiences.

Its operating structure comprises multiple well-known cruise brands that target distinct geographic and demographic markets.