Royal Caribbean Cruises (NYSE:RCL) Trading Down 5.4% – Should You Sell?

Royal Caribbean Cruises Ltd. (NYSE:RCL)’s share price traded down 5.4% during mid-day trading on Tuesday . The stock traded as low as $240.00 and last traded at $236.6730. Approximately 2,318,658 shares were traded during trading, a decline of 6% from the average session volume of 2,474,548 shares. The stock had previously closed at $250.25.

Analysts Set New Price Targets

RCL has been the topic of a number of research analyst reports. Weiss Ratings lowered shares of Royal Caribbean Cruises from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, September 3rd. Freedom Capital downgraded shares of Royal Caribbean Cruises from a “strong-buy” rating to a “hold” rating in a report on Wednesday, July 29th. UBS Group reiterated a “buy” rating and issued a $367.00 target price on shares of Royal Caribbean Cruises in a research report on Monday, August 3rd. Loop Capital initiated coverage on Royal Caribbean Cruises in a research note on Monday, June 1st. They issued a “hold” rating and a $304.00 target price on the stock. Finally, William Blair reaffirmed an “outperform” rating on shares of Royal Caribbean Cruises in a research note on Tuesday, July 28th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, Royal Caribbean Cruises currently has a consensus rating of “Moderate Buy” and a consensus target price of $353.40.

Royal Caribbean Cruises Price Performance

The firm has a market capitalization of $63.30 billion, a P/E ratio of 14.69, a PEG ratio of 0.88 and a beta of 1.74. The business’s 50-day simple moving average is $288.26 and its 200 day simple moving average is $283.13. The company has a quick ratio of 0.19, a current ratio of 0.21 and a debt-to-equity ratio of 2.03.

Royal Caribbean Cruises (NYSE:RCL) last announced its quarterly earnings data on Tuesday, July 28th. The company reported $4.21 earnings per share for the quarter, topping analysts’ consensus estimates of $3.98 by $0.23. Royal Caribbean Cruises had a net margin of 23.54% and a return on equity of 43.33%. The firm had revenue of $4.83 billion during the quarter, compared to analyst estimates of $4.82 billion. During the same period in the previous year, the business posted $4.38 EPS. The business’s quarterly revenue was up 6.5% on a year-over-year basis. Royal Caribbean Cruises has set its FY 2026 guidance at 17.730-17.870 EPS and its Q3 2026 guidance at 6.260-6.360 EPS. Sell-side analysts forecast that Royal Caribbean Cruises Ltd. will post 17.78 earnings per share for the current year.

Royal Caribbean Cruises Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th will be given a dividend of $1.50 per share. This represents a $6.00 annualized dividend and a yield of 2.5%. The ex-dividend date is Thursday, September 17th. Royal Caribbean Cruises’s dividend payout ratio is presently 37.08%.

Insider Activity at Royal Caribbean Cruises

In other news, CEO Michael Bayley sold 12,811 shares of Royal Caribbean Cruises stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $315.99, for a total value of $4,048,147.89. Following the transaction, the chief executive officer owned 45,297 shares in the company, valued at approximately $14,313,399.03. The trade was a 22.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 6.44% of the company’s stock.

Hedge Funds Weigh In On Royal Caribbean Cruises

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Capital International Investors grew its holdings in shares of Royal Caribbean Cruises by 9.8% in the fourth quarter. Capital International Investors now owns 36,165,358 shares of the company’s stock worth $10,088,156,000 after purchasing an additional 3,215,382 shares during the last quarter. BlackRock Inc. bought a new stake in Royal Caribbean Cruises during the 2nd quarter valued at $6,549,422,000. Capital Research Global Investors boosted its position in Royal Caribbean Cruises by 4.8% during the 4th quarter. Capital Research Global Investors now owns 20,176,544 shares of the company’s stock valued at $5,627,669,000 after buying an additional 920,042 shares during the period. State Street Corp grew its holdings in Royal Caribbean Cruises by 2.6% in the 2nd quarter. State Street Corp now owns 10,689,134 shares of the company’s stock worth $3,409,971,000 after acquiring an additional 270,930 shares during the last quarter. Finally, Geode Capital Management LLC grew its holdings in Royal Caribbean Cruises by 2.3% in the 4th quarter. Geode Capital Management LLC now owns 7,054,191 shares of the company’s stock worth $1,961,758,000 after acquiring an additional 155,491 shares during the last quarter. 87.53% of the stock is currently owned by institutional investors.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd., now operating as Royal Caribbean Group, is a global cruise vacation company headquartered in Miami, Florida. The company provides cruise vacations and related travel experiences through a fleet of ocean-going ships serving destinations across the Caribbean, Europe, Alaska, Asia, Australia and New Zealand, and other regions.

Royal Caribbean Group’s principal brands include Royal Caribbean International, Celebrity Cruises and Silversea. Royal Caribbean International focuses on large-ship vacations featuring entertainment, dining, family activities and onboard attractions; Celebrity Cruises offers premium cruises; and Silversea specializes in luxury and expedition voyages.