Royal Caribbean Cruises’ (RCL) Outperform Rating Reiterated at BMO Capital Markets

BMO Capital Markets reiterated their outperform rating on shares of Royal Caribbean Cruises (NYSE:RCL) in a research note published on Wednesday,Benzinga reports. The brokerage currently has a $370.00 price target on the stock.

Several other research firms have also recently weighed in on RCL. TD Cowen upgraded Royal Caribbean Cruises to a “strong-buy” rating in a research note on Tuesday, September 8th. Weiss Ratings cut Royal Caribbean Cruises from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, September 3rd. Zacks Research upgraded Royal Caribbean Cruises from a “strong sell” rating to a “hold” rating in a report on Thursday, June 18th. Freedom Capital downgraded Royal Caribbean Cruises from a “strong-buy” rating to a “hold” rating in a report on Wednesday, July 29th. Finally, Loop Capital began coverage on Royal Caribbean Cruises in a research report on Monday, June 1st. They issued a “hold” rating and a $304.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $356.10.

Royal Caribbean Cruises Stock Up 1.9%

Shares of Royal Caribbean Cruises stock opened at $243.57 on Wednesday. The company has a 50-day simple moving average of $284.09 and a two-hundred day simple moving average of $281.85. The stock has a market capitalization of $65.14 billion, a PE ratio of 15.05, a price-to-earnings-growth ratio of 0.78 and a beta of 1.74. Royal Caribbean Cruises has a 52-week low of $222.22 and a 52-week high of $356.39. The company has a debt-to-equity ratio of 2.03, a quick ratio of 0.19 and a current ratio of 0.21.

Royal Caribbean Cruises (NYSE:RCL) last announced its quarterly earnings results on Tuesday, July 28th. The company reported $4.21 earnings per share for the quarter, beating the consensus estimate of $3.98 by $0.23. Royal Caribbean Cruises had a net margin of 23.54% and a return on equity of 43.33%. The company had revenue of $4.83 billion during the quarter, compared to the consensus estimate of $4.82 billion. During the same quarter last year, the firm earned $4.38 earnings per share. The firm’s quarterly revenue was up 6.5% compared to the same quarter last year. Royal Caribbean Cruises has set its FY 2026 guidance at 17.730-17.870 EPS and its Q3 2026 guidance at 6.260-6.360 EPS. On average, analysts anticipate that Royal Caribbean Cruises will post 17.78 EPS for the current fiscal year.

Royal Caribbean Cruises Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Thursday, September 17th will be issued a dividend of $1.50 per share. This represents a $6.00 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Thursday, September 17th. Royal Caribbean Cruises’s dividend payout ratio is presently 37.08%.

Insider Activity

In other news, CEO Michael Bayley sold 12,811 shares of the firm’s stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $315.99, for a total value of $4,048,147.89. Following the transaction, the chief executive officer directly owned 45,297 shares in the company, valued at $14,313,399.03. This trade represents a 22.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. 6.44% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of RCL. Bell Investment Advisors Inc purchased a new stake in shares of Royal Caribbean Cruises during the 2nd quarter valued at about $29,000. NBH Bank bought a new position in shares of Royal Caribbean Cruises in the 2nd quarter worth approximately $29,000. Cape Investment Advisory Inc. purchased a new position in shares of Royal Caribbean Cruises in the second quarter worth approximately $30,000. Ancora Advisors LLC purchased a new position in shares of Royal Caribbean Cruises in the second quarter worth approximately $31,000. Finally, IMG Wealth Management Inc. bought a new stake in Royal Caribbean Cruises during the first quarter valued at approximately $27,000. Institutional investors own 87.53% of the company’s stock.

Key Stories Impacting Royal Caribbean Cruises

Here are the key news stories impacting Royal Caribbean Cruises this week:

• Positive Sentiment: Royal Caribbean’s agreement to acquire a 50% stake in Sandals Resorts and Beaches Resorts for approximately $3 billion provides a new growth platform beyond cruising. The transaction, expected to close in early 2027, could help broaden the company’s customer ecosystem and create cross-selling opportunities. A Cruise Line Betting on Land: Is Royal Caribbean’s Sandals Deal Genius or Overreach?
• Positive Sentiment: Analysts reacted favorably to the Sandals partnership. Citi placed RCL on a 90-day positive catalyst watch, while JPMorgan raised its price target to $394 from $345 and maintained an “overweight” rating. BMO Capital Markets also rated the shares “outperform,” reinforcing the bullish view. JPMorgan, Citi Bullish on Royal Caribbean’s Sandals Partnership
• Positive Sentiment: Strong bookings, cash flow and raised 2026 earnings expectations suggest that cruise demand remains resilient despite the stock’s decline over the past year. Some valuation analysis estimates that RCL could be materially undervalued if earnings growth continues. Royal Caribbean Cruises Could Be 31% Undervalued
• Neutral Sentiment: RCL’s recent advance occurred on above-average volume, but analysts caution that earnings-estimate revisions alone may not sustain additional near-term gains. The shares have also delivered a strong five-year return while remaining sharply lower over the past year, creating a mixed valuation signal. Royal Caribbean Moves Higher: Will This Strength Last?
• Negative Sentiment: The Sandals investment increases capital requirements and execution risk, while Royal Caribbean already carries substantial leverage. Investors will need evidence that the resort stake can generate attractive returns without weakening the cruise company’s balance sheet.
• Negative Sentiment: Recent weakness appears linked less to collapsing demand than to slower cabin pricing in the third quarter. Continued pressure on fares, combined with the risk that the market has already priced in much of the earnings recovery, could limit further upside. Should You Buy Royal Caribbean At a One-Year Low?

About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd., now operating as Royal Caribbean Group, is a global cruise vacation company headquartered in Miami, Florida. The company provides cruise vacations and related travel experiences through a fleet of ocean-going ships serving destinations across the Caribbean, Europe, Alaska, Asia, Australia and New Zealand, and other regions.

Royal Caribbean Group’s principal brands include Royal Caribbean International, Celebrity Cruises and Silversea. Royal Caribbean International focuses on large-ship vacations featuring entertainment, dining, family activities and onboard attractions; Celebrity Cruises offers premium cruises; and Silversea specializes in luxury and expedition voyages.