Royal Caribbean Group (NYSE:RCL) shares fell to a low of $80.43 before closing at $82.73. Intraday shares traded counted 8.53 million, which was -18.1% lower than its 30-day average trading volume of 7.22M. RCL’s previous close was $84.40 while the outstanding shares total 214.16M. The firm has a beta of 2.91. The stock’s Relative Strength Index (RSI) is 63.13, with weekly volatility at 5.01% and ATR at 4.05. The RCL stock’s 52-week price range has touched low of $19.25 and a $135.32 high. The stock traded lower over the last trading session, losing -1.98% on 12/04/20.
Investors have identified the Travel Services company Royal Caribbean Group as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $18.93 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Royal Caribbean Group (RCL) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For RCL, the company has in raw cash 3.02 billion on their books with 870.03 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 3531795000 million total, with 4625465000 million as their total liabilities.
RCL were able to record -4.48 billion as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 2.77 billion. In cash movements, the company had a total of -2.91 billion as operating cash flow.
Potential earnings growth for Royal Caribbean Group (RCL)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Royal Caribbean Group recorded a total of -33.69 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 9559.9% coming in sequential stages and their sales for the third quarter increasing by 621.27%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 308.61 million trying to sell their products during the last quarter, with the result yielding a gross income of -342.3 million. This allows shareholders to hold on to 214.16M with the revenue now reading -6.25 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-4.92 cents a share).
Having a look at the company’s valuation, the company is expected to record 9.54 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on RCL sounds very interesting.
Is the stock of RCL attractive?
In related news, 10% Owner, A WILHELMSEN A S sold 600,000 shares of the company’s stock in a transaction that recorded on Aug 25. The sale was performed at an average price of 63.67, for a total value of 38,202,172. As the sale deal closes, the Director, Wilhelmsen Arne Alexander now sold 600,000 shares of the company’s stock, valued at 38,202,172. Also, Director, Wilhelmsen Arne Alexander sold 1,400,000 shares of the company’s stock in a deal that was recorded on Aug 24. The shares were price at an average price of 63.36 per share, with a total market value of 88,706,605. Following this completion of acquisition, the 10% Owner, A WILHELMSEN A S now holds 1,400,000 shares of the company’s stock, valued at 88,706,605. In the last 6 months, insiders have changed their ownership in shares of company stock by 8.20%.
6 out of 18 analysts covering the stock have rated it a Buy, while 9 have maintained a Hold recommendation on Royal Caribbean Group. 1 analysts has assigned a Sell rating on the RCL stock. The 12-month mean consensus price target for the company’s shares has been set at $63.08.