why Carnival Corporation & plc [CCL] is a Good Choice for Investors After New Price Target of $28.48

Carnival Corporation & plc [NYSE: CCL] traded at a low on 07/23/21, posting a -3.30 loss after which it closed the day’ session at $21.96. The company report on July 22, 2021 that Carnival Corporation & plc Announces Pricing of $2.4 Billion 4.0% First-Priority Senior Secured Notes Offering to Refinance a Portion of its Existing 11.5% Notes and Extend Maturities.

Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced that Carnival Corporation (the “Issuer”) has priced its private offering of $2,405.5 million aggregate principal amount of 4.000% first-priority senior secured notes due 2028 (the “New Notes”). The offering of the New Notes is expected to close on July 26, 2021 subject to customary closing conditions.

The New Notes will pay interest semi-annually on February 1 and August 1 of each year, beginning on February 1, 2022, at a rate of 4.000% per year. The New Notes will mature on August 1, 2028. The Issuer expects to use the net proceeds from the offering of the New Notes to fund its previously announced tender offer to purchase up to $2,004,000,000 aggregate principal amount of 11.500% First Priority Senior Secured Notes due 2023 (the “2023 Notes”) and the related consent solicitation, and the payment of accrued and unpaid interest on the 2023 Notes accepted for purchase and related fees and expenses. The New Notes’ 4.000% interest rate will replace existing debt carrying an 11.500% coupon and generate $135 million of interest savings annually.

The results of the trading session contributed to over 32479773 shares changing hands. Over the past one week, the price volatility of Carnival Corporation & plc stands at 5.96% while the volatility over the past one month is 4.54%.

The market cap for CCL stock reached $25.67 billion, with 1.13 billion shares outstanding and 903.80 million shares in the current float. Compared to the average trading volume of 29.76M shares, CCL reached a trading volume of 32479773 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Carnival Corporation & plc [CCL]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CCL shares is $28.48 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CCL stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Wolfe Research have made an estimate for Carnival Corporation & plc shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on June 16, 2021. While these analysts kept the previous recommendation, Credit Suisse raised their target price from $18 to $40. The new note on the price target was released on April 09, 2021, representing the official price target for Carnival Corporation & plc stock. Previously, the target price had yet another raise to $33, while Argus analysts kept a Buy rating on CCL stock.

The Average True Range (ATR) for Carnival Corporation & plc is set at 1.17, with the Price to Sales ratio for CCL stock in the period of the last 12 months amounting to 182.08. The Price to Book ratio for the last quarter was 1.39, with the Price to Cash per share for the same quarter was set at 7.93.

How has CCL stock performed recently?

Carnival Corporation & plc [CCL] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.97. With this latest performance, CCL shares dropped by -21.99% in over the last four-week period, additionally plugging by 8.61% over the last 6 months – not to mention a rise of 48.38% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CCL stock in for the last two-week period is set at 38.16, with the RSI for the last a single of trading hit 39.95, and the three-weeks RSI is set at 38.59 for Carnival Corporation & plc [CCL]. The present Moving Average for the last 50 days of trading for this stock 26.86, while it was recorded at 21.75 for the last single week of trading, and 23.25 for the last 200 days.

Carnival Corporation & plc [CCL]: Deeper insight into the fundamentals

Carnival Corporation & plc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.20.

Insider trade positions for Carnival Corporation & plc [CCL]

There are presently around $11,327 million, or 52.60% of CCL stock, in the hands of institutional investors. The top three institutional holders of CCL stocks are: VANGUARD GROUP INC with ownership of 84,332,262, which is approximately 33.728% of the company’s market cap and around 0.20% of the total institutional ownership; PUBLIC INVESTMENT FUND, holding 50,830,926 shares of the stock with an approximate value of $1.12 billion in CCL stocks shares; and BLACKROCK INC., currently with $991.16 million in CCL stock with ownership of nearly 18.865% of the company’s market capitalization.

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Positions in Carnival Corporation & plc stocks held by institutional investors increased at the end of June and at the time of the June reporting period, where 475 institutional holders increased their position in Carnival Corporation & plc [NYSE:CCL] by around 91,838,201 shares. Additionally, 281 investors decreased positions by around 68,963,288 shares, while 126 investors held positions by with 354,994,008 shares. The mentioned changes placed institutional holdings at 515,795,497 shares, according to the latest SEC report filing. CCL stock had 127 new institutional investments in for a total of 16,527,267 shares, while 89 institutional investors sold positions of 16,465,546 shares during the same period.

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