Carnival Corporation & Plc (NYSE: CCL) – Not A Clear Buying Opportunity?


The Vanguard Group, Inc. has recently announced that it has increased stake in Carnival Corporation & Plc (NYSE:CCL) by 66.76%. After grabbing 49.76 million shares, the institutional investor is now in possession of 19.92 million shares of the Consumer Cyclical Company. The new investment brought the stake of investor firm to 8.29% having worth around $690.74 million. Moreover, Northern Trust Investments, Inc.(.. increased its share by 1.21 million to have a control over 24.96 million shares. And BlackRock Fund Advisors raised its holdings to 5.92 million shares by acquiring 22.89 million shares or 3.81% of the stake.

Carnival Corporation & Plc (CCL) concluded trading on 08/26/20 at a closing price of $15.28, with 24.33 million shares of worth about $371.84 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 4.66% during that period and on Wednesday the price saw a loss of about -3.84%. Currently the company’s common shares owned by public are about 721.00M shares, out of which, 606.79M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 20 analysts are covering the CCL stock and their offered price forecasts bring an average price target of $14.71. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $24.00 and could fall to a lowest price of $9.93. Analysts also issued an outlook of 3.00 for the Carnival Corporation & Plc stock for next 12 months. The stock’s current price level is -1.06% below of average price target set by the analysts, while a dip to estimated low would result in loss of -53.88 for the stock. However, touching the estimated high of $24.00 would mean a gain of 36.33% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 97 times over the past 12 months. They bought 3,289,520 shares in 67 of the transactions. In 30 selling transactions, insiders dumped 200,225 shares.

Vanguard Total Stock Market Index, Vanguard Mid Cap Index Fund, and Vanguard 500 Index Fund are the top 3 mutual funds which are holding stakes in Carnival Corporation & Plc Vanguard Total Stock Market Index is currently holding 13.7 million shares of worth totaling $190.11 million. The company recently came selling 327.0 shares which brought its stake up to 2.28% of the company’s outstanding shares. Vanguard Mid Cap Index Fund sold 98505.0 shares, after which its hold over company’s outstanding shares shrunk to 1.96%, leaving 11.74 million shares with the mutual fund that have a worth of about $163.02 million. Vanguard 500 Index Fund, after selling 9.78 million shares, have now control over 1.63% of the stake in the company. It holds 50554.0 shares of worth $135.75 million.

Carnival Corporation & Plc (NYSE: CCL) started trading at $15.70, below -$0.19 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $15.28, or with a loss of -3.84%. Stock saw a price change of 4.66% in past 5 days and over the past one month there was a price change of 6.63%. Year-to-date (YTD), CCL shares are showing a performance of -69.94% which decreased to -64.49% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $7.80 but also hit the highest price of $51.94 during that period. While comparing its average daily trading volume of 44.17 million shares, we see that about 24.33 million changed hands on the day. The stock is currently trading 4.03% above its 20-day simple moving average (SMA20), while that difference is down -1.63% for SMA50 and it goes to -43.38% lower than SMA200.

The Vanguard Group, Inc. acquired 49.76 million shares of Carnival Corporation & Plc having value of about $690.74 million. Data submitted at the U.S SEC by The Vanguard Group, Inc. revealed that the firm now holds 19.92 million shares in the company valued at close to $304415127.68, or have control over 66.76% stake in the company. Carnival Corporation & Plc (NYSE: CCL) currently have 721.00M outstanding shares and institutions hold larger chunk of about 56.20% of that. Holding of mutual funds in the company is about 25.12% while other institutional holders and individual stake holders have control over 31.93% and 15.73% of the stake respectively.

The stock has a current market capitalization of $12.56B and its 3Y-monthly beta is at 1.91. It has posted earnings per share of -$4.02 in the same period. It has Quick Ratio of 0.70 while making debt-to-equity ratio of 1.00. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for CCL, volatility over the week remained 5.74% while standing at 5.80% over the month.

Analysts are in expectations that Carnival Corporation & Plc (CCL) stock would likely to be making an EPS of -$2.25 in the current quarter, while forecast for next quarter ESPS is -$1.96 and it is -$2.44 for next year. For the current quarter EPS, analysts have given the company a lowest target -$2.6 which is -$2.04 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $2.63 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -2.70% while it is estimated to increase by 65.00% in next year.

Analysts at 20 brokerage firms have issued recommendations for the Carnival Corporation & Plc (CCL)’s stock and average of those rates the stock at a “Hold” and assign it a score of 3.00. Out of those 20 Wall Street analysts, 1 recommended a “Buy” rating, while 14 were in favor recommending the stock as a “Hold” and 3 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by HSBC Securities on July 21, 2020 offering a Hold rating for the stock and assigned a target price of to it. Coverage by SunTrust stated Carnival Corporation & Plc (CCL) stock as a Sell in their note to investors on July 14, 2020, suggesting a price target of $10 for the stock. On July 14, 2020, Macquarie Downgrade their recommendations, while on June 03, 2020, Morgan Stanley Resumed their ratings for the stock with a price target of $11. Stock get a Neutral rating from Credit Suisse on May 21, 2020.


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