Carnival (NYSE:CCL) Cut to “Strong Sell” at ValuEngine

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ValuEngine downgraded shares of Carnival (NYSE:CCL) from a sell rating to a strong sell rating in a research note released on Thursday morning, ValuEngine reports.

Several other brokerages also recently commented on CCL. William Blair reiterated an outperform rating on shares of American Software in a research note on Thursday, June 20th. SunTrust Banks reduced their target price on Carnival to $65.00 and set a buy rating for the company in a research note on Friday, June 21st. Wolfe Research upgraded AbbVie from an underperform rating to a peer perform rating in a research note on Thursday, June 27th. Wedbush set a $130.00 target price on Childrens Place and gave the stock a buy rating in a research note on Friday, June 21st. Finally, Wells Fargo & Co reduced their target price on Carnival from $67.00 to $59.00 and set an outperform rating for the company in a research note on Monday, June 24th. Two equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and nine have given a buy rating to the company’s stock. Carnival has an average rating of Hold and an average target price of $61.83.

CCL stock opened at $46.26 on Thursday. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.22 and a current ratio of 0.27. The company has a 50 day moving average of $49.43. The company has a market capitalization of $24.38 billion, a P/E ratio of 10.99, a price-to-earnings-growth ratio of 1.10 and a beta of 1.09. Carnival has a twelve month low of $44.76 and a twelve month high of $67.69.

Carnival (NYSE:CCL) last issued its earnings results on Thursday, June 20th. The company reported $0.66 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.61 by $0.05. Carnival had a return on equity of 12.15% and a net margin of 15.09%. The company had revenue of $4.84 billion during the quarter, compared to the consensus estimate of $4.49 billion. During the same period in the previous year, the company posted $0.68 EPS. The firm’s revenue for the quarter was up 11.0% compared to the same quarter last year. On average, equities analysts forecast that Carnival will post 4.34 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Friday, September 13th. Investors of record on Friday, August 23rd will be issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 4.32%. Carnival’s payout ratio is currently 46.95%.

In other news, Director Randall J. Weisenburger purchased 20,000 shares of the company’s stock in a transaction that occurred on Wednesday, July 3rd. The stock was acquired at an average cost of $46.50 per share, with a total value of $930,000.00. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Arnold W. Donald purchased 22,050 shares of the company’s stock in a transaction that occurred on Tuesday, June 25th. The shares were purchased at an average cost of $45.23 per share, with a total value of $997,321.50. The disclosure for this purchase can be found here. Company insiders own 24.10% of the company’s stock.

Large investors have recently added to or reduced their stakes in the stock. Advisory Alpha LLC acquired a new stake in Carnival during the 1st quarter worth approximately $29,000. Peddock Capital Advisors LLC acquired a new position in Carnival in the 1st quarter valued at $35,000. Sontag Advisory LLC acquired a new position in Carnival in the 4th quarter valued at $35,000. Resources Investment Advisors Inc. raised its holdings in Carnival by 823.5% in the 1st quarter. Resources Investment Advisors Inc. now owns 942 shares of the company’s stock valued at $48,000 after acquiring an additional 840 shares in the last quarter. Finally, First Mercantile Trust Co. raised its holdings in Carnival by 24.0% in the 1st quarter. First Mercantile Trust Co. now owns 1,240 shares of the company’s stock valued at $63,000 after acquiring an additional 240 shares in the last quarter. 74.92% of the stock is owned by institutional investors and hedge funds.

About Carnival

Carnival Corporation operates as a leisure travel company in North America, Australia, Europe, and Asia. It operates in four segments: North America and Australia Cruise Operations, Europe and Asia Cruise Operations, Cruise Support, and Tour and Other. The company operates cruises under the Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia), Seabourn, Costa, AIDA, P&O Cruises (UK), and Cunard brand names.

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To view ValuEngine’s full report, visit ValuEngine’s official website.

Analyst Recommendations for Carnival (NYSE:CCL)

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