Calamos Wealth Management LLC significantly reduced its holdings in Royal Caribbean Cruises Ltd. (NYSE: RCL) by 73.6% during the third quarter, according to a recent filing with the Securities and Exchange Commission. The institutional investor now owns 45,211 shares after selling 126,302 shares during the quarter. As of the latest filing, Calamos Wealth Management’s stake in Royal Caribbean is valued at approximately $14.6 million.
Several other institutional investors have also made adjustments to their positions in Royal Caribbean recently. Opal Wealth Advisors LLC initiated a new investment in the cruise company valued at about $27,000 in the second quarter. Similarly, Oliver Lagore Vanvalin Investment Group and 1 North Wealth Services LLC each acquired stakes worth around $31,000. Evolution Wealth Management Inc. and Trust Co. of Toledo NA OH also entered new positions, valued at $31,000 and $32,000, respectively. Currently, 87.53% of Royal Caribbean’s stock is owned by hedge funds and institutional investors.
Analyst Ratings and Stock Performance
Royal Caribbean Cruises has been the subject of multiple analyst ratings. On October 28, William Blair reaffirmed an “outperform” rating for the stock. Subsequently, Susquehanna established a price target of $350.00 and assigned a “positive” rating. In contrast, Jefferies Financial Group lowered its price target from $286.00 to $275.00 and maintained a “hold” rating as of December 15. Mizuho reduced its price target from $372.00 to $362.00 while keeping an “outperform” rating, and Stifel Nicolaus also adjusted its target from $420.00 to $400.00, still rating the stock as a “buy.”
Overall, one analyst has given a “Strong Buy” rating, while nineteen analysts have rated the stock as a “Buy,” and four have issued a “Hold” rating. According to data from MarketBeat, Royal Caribbean Cruises has an average rating of “Moderate Buy” and a consensus price target of $324.82.
As of the latest trading session, Royal Caribbean shares opened at $281.65. The stock has experienced significant fluctuations, with a one-year low of $164.01 and a peak of $366.50. The company’s market capitalization stands at approximately $76.81 billion, with a price-to-earnings ratio of 18.94.
Quarterly Earnings and Future Guidance
Royal Caribbean released its quarterly earnings data on October 28, revealing earnings per share (EPS) of $5.75, surpassing the consensus estimate of $5.68 by $0.07. The company reported a net margin of 23.33% and a return on equity of 44.68%. Revenue for the quarter reached $5.14 billion, slightly below the expected $5.16 billion, but reflecting a year-over-year increase of 5.2%. For fiscal year 2025, Royal Caribbean has projected EPS guidance between $15.580 and $15.630, with fourth-quarter guidance set at $2.740 to $2.790.
Additionally, the company announced a quarterly dividend of $1.00 per share, scheduled for payment on January 14, 2025. Investors on record as of December 26, 2024, will receive the dividend, resulting in an annualized payout of $4.00 and a yield of 1.4%. The board has also approved a $2.0 billion stock repurchase program, indicating a belief that the company’s stock may be undervalued.
In insider trading news, Director Maritza Gomez Montiel sold 1,100 shares of Royal Caribbean on November 3 at an average price of $281.76, totaling approximately $309,936. Following this transaction, she holds 14,234 shares valued at about $4.01 million. Currently, company insiders own around 6.95% of the stock.
Royal Caribbean Cruises Ltd., part of the Royal Caribbean Group, is a premier global cruise line known for developing and operating passenger cruise ships. The company operates a range of brands that provide diverse itineraries and onboard experiences, serving regions including the Caribbean, North America, Europe, Asia, Australia, and South America.
