Royal Caribbean Cruises Ltd. [RCL] Stock trading around $37.90 per share: What’s Next?

Royal Caribbean Cruises Ltd. [NYSE: RCL] loss -13.15% or -5.74 points to close at $37.90 with a heavy trading volume of 20475803 shares. The company report on September 22, 2022 that Royal Caribbean Group announces pricing of $1 billion offering of senior guaranteed notes and $1 billion offering of senior secured notes to refinance 2023 debt maturities.

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Royal Caribbean Cruises Ltd. (NYSE: RCL) (the “Company”) today announced that it has priced its concurrent private offerings of $1.0 billion aggregate principal amount of 9.250% Senior Guaranteed Notes due 2029 (the “Senior Guaranteed Notes”), and $1.0 billion aggregate principal amount of 8.250% Senior Secured Notes due 2029 (the “Senior Secured Notes,” together with the Senior Guaranteed Notes, the “Notes”). The Company intends to use the proceeds from the sale of the Senior Guaranteed Notes and the Senior Secured Notes, together with cash on hand, to redeem all its outstanding 9.125% Priority Guaranteed Notes due 2023 and 10.875% Senior Secured Notes due 2023, respectively, concurrently with the respective closing of the Senior Guaranteed Notes and Senior Secured Notes offerings (including to pay fees and expenses in connection with such redemptions).

The Senior Guaranteed Notes will mature on January 15, 2029. The Senior Guaranteed Notes will be guaranteed on a senior unsecured basis by RCI Holdings LLC, which owns 100% of the equity interests of certain of the Company’s wholly-owned vessel-owning subsidiaries.

It opened the trading session at $41.365, the shares rose to $41.935 and dropped to $37.72, the range by which the price of stock traded the whole day. The daily chart for RCL points out that the company has recorded -54.76% loss over the past six months. However, it is still -21.9% lower than its most recent low trading price.

If we look at the average trading volume of 7.45M shares, RCL reached to a volume of 20475803 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Royal Caribbean Cruises Ltd. [RCL]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RCL shares is $65.21 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RCL stock is a recommendation set at 2.40. 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.

Barclays have made an estimate for Royal Caribbean Cruises Ltd. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on June 29, 2022. While these analysts kept the previous recommendation, Susquehanna raised their target price to Positive. The new note on the price target was released on June 09, 2022, representing the official price target for Royal Caribbean Cruises Ltd. stock. Previously, the target price had yet another raise to $93, while Wells Fargo analysts kept a Overweight rating on RCL stock.

The Average True Range (ATR) for Royal Caribbean Cruises Ltd. is set at 2.97, with the Price to Sales ratio for RCL stock in the period of the last 12 months amounting to 2.38. The Price to Book ratio for the last quarter was 2.84, with the Price to Cash per share for the same quarter was set at 7.16.

Trading performance analysis for RCL stock

Royal Caribbean Cruises Ltd. [RCL] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -14.68. With this latest performance, RCL shares dropped by -7.22% in over the last four-week period, additionally sinking by -54.76% over the last 6 months – not to mention a drop of -57.39% 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 RCL stock in for the last two-week period is set at 36.05, with the RSI for the last a single of trading hit 28.86, and the three-weeks RSI is set at 40.53 for Royal Caribbean Cruises Ltd. [RCL]. The present Moving Average for the last 50 days of trading for this stock 42.19, while it was recorded at 43.75 for the last single week of trading, and 61.20 for the last 200 days.

Royal Caribbean Cruises Ltd. [RCL]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Royal Caribbean Cruises Ltd. [RCL] shares currently have an operating margin of -248.82 and a Gross Margin at -159.51. Royal Caribbean Cruises Ltd.’s Net Margin is presently recorded at -343.34.

Return on Equity for this stock declined to -75.98, with Return on Assets sitting at -16.26.

Royal Caribbean Cruises Ltd.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.30 and a Current Ratio set at 0.30.

An analysis of insider ownership at Royal Caribbean Cruises Ltd. [RCL]

There are presently around $6,900 million, or 72.80% of RCL stock, in the hands of institutional investors. The top three institutional holders of RCL stocks are: CAPITAL INTERNATIONAL INVESTORS with ownership of 29,750,225, which is approximately 2.989% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 23,577,417 shares of the stock with an approximate value of $893.58 million in RCL stocks shares; and CAPITAL RESEARCH GLOBAL INVESTORS, currently with $599.06 million in RCL stock with ownership of nearly -27.314% of the company’s market capitalization.

Positions in Royal Caribbean Cruises Ltd. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 244 institutional holders increased their position in Royal Caribbean Cruises Ltd. [NYSE:RCL] by around 17,831,180 shares. Additionally, 356 investors decreased positions by around 28,371,246 shares, while 122 investors held positions by with 135,867,647 shares. The mentioned changes placed institutional holdings at 182,070,073 shares, according to the latest SEC report filing. RCL stock had 51 new institutional investments in for a total of 2,746,876 shares, while 164 institutional investors sold positions of 10,485,958 shares during the same period.


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