Is Carnival Corporation & plc (CCL) Stock Cheap Or Risky?


As of Wednesday close, Carnival Corporation & plc’s (NYSE:CCL) stock was up $0.26, moving up 2.75 percent to $9.73. The average number of shares traded per day over the past five days has been 40,899,840 shares. 3 times new highs have been achieved over the past 5 days, with a $0.10 gain in that time frame. In the last twenty days, the average volume was 58,151,855, while in the previous 50 days, it was 68,719,430.

Since last month, CCL stock rose 12.88%. Shares of the company fell to $7.91 on 10/24/22, the lowest level in the past month. A 52-week high of $23.86 was reached on 02/10/22 after having rallying from a 52-week low of $6.11. Since the beginning of this year, CCL’s stock price has dropped by -51.64% or -$10.39, and marked a new high 6 times. However, the stock has declined by -59.21% since its 52-week high.

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CCL stock investors should be aware that Carnival Corporation & plc (CCL) stock had its last reported insider trading activity 184 days ago on May 25. WEISENBURGER RANDALL J, the Director of the company, purchased of 100,000 shares for $11.76 on May 25. It resulted in a $1,175,500 investment by the insider. DONALD ARNOLD W sold 95,796 shares at an average price of $19.08 on Jan 28. The insider now owns 366,527 shares following the transaction. On Jan 20, CFO & CAO Bernstein David sold 7,670 shares at $21.38 apiece. The transaction was valued at $164,018.

Valuation Metrics

The stock’s beta is 2.14. Besides these, the trailing price-to-sales (P/S) ratio of 1.26, the price-to-book (PB) ratio of 1.38.

The latest dividend of $0.50 per share was paid out, remained unchanged from last year’s $0.50.

Financial Health

In the three months ended August 30, Carnival Corporation & plc’s quick ratio stood at 0.60, while its current ratio was 0.70, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending August 30 was 3.40, and the total debt-to-equity ratio was 4.07. On the profitability front, the trailing twelve-month gross margin is 25.50% percent. In the year ended August 30, operating margins totaled -56.50%. Based on annual data, CCL earned -$2.15 billion in gross profit and brought in $1.91 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -17.10%. Return on equity (ROE) for the past 12 months was -72.80%.

In Carnival Corporation & plc’s quarter-end financial report for August 30, it reported total debt of $28.52 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. CCL’s revenue rose 87.32% to $2.4 billion during the quarter, while net income inched up to $4.3 billion. While analysts expected Carnival Corporation & plc to report -$0.15 quarterly earnings, the actual figure was -$0.58 per share, beating the consensus estimate by -286.70%. During the quarter, the company generated $345.0 million in EBITDA. The liabilities of Carnival Corporation & plc were 43.54 billion at the end of its most recent quarter ended August 30, and its total debt was $35.29 billion. The value of shareholders’ equity is $1.3 billion.

Technical Picture

This quick technical analysis looks at Carnival Corporation & plc’s (CCL) price momentum. With a historical volatility rate of 121.02%, the RSI 9-day stood at 55.20% on 23 November.

With respect to its five-day moving average, the current Carnival Corporation & plc price is up by +1.04% percent or $0.10. At present, CCL shares trade +12.23% above its 20-day simple moving average and +3.73% percent above its 100-day simple moving average. However, the stock is currently trading approximately -7.95% below its SMA50 and -56.85% below its SMA200.

Stochastic coefficient K was 37.20% and Stochastic coefficient D was 36.65%, while ATR was 0.60. Given the Stochastic reading of 40.81% for the 14-day period, the RSI (14) reading has been calculated as 55.32%. As of today, the MACD Oscillator reading stands at -0.41, while the 14-day reading stands at -0.10.

Analyst Ratings

Morgan Stanley reiterated its an Underweight rating on Carnival Corporation & plc (NYSE: CCL) in a note to investors. The analysts firm has however raised their price target to $7, representing a possible 25.15% increase in the stock price. Carnival Corporation & plc (CCL) has been rated Hold by analysts. According to 4 brokerage firms, CCL is a sell, and 10 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 2 analysts rate Carnival Corporation & plc stock as buy, with 6 recommending it as overweight.

With a median target price of $10.00, the current consensus forecast for the stock is $6.00 – $22.00. Based on these forecasts, analysts predict Carnival Corporation & plc (CCL) will achieve an average price target of $10.30.


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