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Carnival Corporation & plc (NYSE:CCL): An Opportunity for Fundamental Investors?

Carnival Corporation & plc (NYSE:CCL) shares traded higher over the last trading session, gaining 2.00% on 06/01/21. The shares fell to a low of $29.91 before closing at $30.15. Intraday shares traded counted 36.72 million, which was -5.48% lower than its 30-day average trading volume of 34.81M. CCL’s previous close was $29.56 while the outstanding shares total 1.09B. The firm has a beta of 2.33. The stock’s Relative Strength Index (RSI) is 64.87, with weekly volatility at 2.90% and ATR at 1.08. The CCL stock’s 52-week price range has touched low of $12.11 and a $30.63 high.

Investors have identified the Travel Services company Carnival Corporation & plc 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 $33.78 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.

Carnival Corporation & plc (CCL) 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 CCL, the company has in raw cash 9.67 billion on their books with 1.73 billion 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 a decline. In terms of their assets, the company currently has 12.46 billion total, with 8.62 billion as their total liabilities.

CCL were able to record -3.28 billion as free cash flow during the 09/30/2021 quarter of the year, this saw their quarterly net cash flow reduce by 138.0 million. In cash movements, the company had a total of -1.5 billion as operating cash flow.

Potential earnings growth for Carnival Corporation & plc (CCL)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 09/30/2021 quarter of the year, Carnival Corporation & plc recorded a total of 26.0 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -18319.23% coming in sequential stages and their sales for the 09/30/2021 quarter reducing by -34.62%.

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 354.0 million trying to sell their products during the last quarter, with the result yielding a gross income of -328.0 million. This allows shareholders to hold on to 1.09B with the recently reported earning now reading -1.80 cents per share. This is a figure that compared to analyst’s prediction for their 09/30/2021 (-1.79 cents a share).

Having a look at the company’s valuation, the company is expected to record 0.26 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 CCL sounds very interesting.

Is the stock of CCL attractive?

In related news, Director, WEISENBURGER RANDALL J sold 100,000 shares of the company’s stock in a transaction that recorded on Apr 16. The sale was performed at an average price of 27.50, for a total value of 2,750,030. As the sale deal closes, the Director, WEISENBURGER RANDALL J now sold 450,000 shares of the company’s stock, valued at 12,326,445. Also, Director, WEISENBURGER RANDALL J sold 88,762 shares of the company’s stock in a deal that was recorded on Apr 14. The shares were price at an average price of 28.07 per share, with a total market value of 2,491,310. Following this completion of acquisition, the General Counsel & Secretary, PEREZ ARNALDO now holds 2,760 shares of the company’s stock, valued at 55,859. In the last 6 months, insiders have changed their ownership in shares of company stock by 8.50%.

7 out of 23 analysts covering the stock have rated it a Buy, while 8 have maintained a Hold recommendation on Carnival Corporation & plc. 5 analysts has assigned a Sell rating on the CCL stock. The 12-month mean consensus price target for the company’s shares has been set at $28.05.

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