Norwegian Cruise Line (NCLH) Cut to Hold at Zacks Investment Research
Zacks Investment Research lowered shares of Norwegian Cruise Line (NASDAQ:NCLH) from a buy rating to a hold rating in a research report report published on Friday.
According to Zacks, “Norwegian Cruise Line is being aided by higher passenger ticket revenues owing to increased demand for cruise travel. Its focus on the lucrative Chinese market is also impressive. In 2017, the company announced a partnership with Alibaba Group. Norwegian Cruise Line’s measures to expand its fleet size too bode well. In line with its fleet upgrade efforts, the company ordered two next-generation ships in January 2019. They will be delivered between 2022 and 2025. Each ship will accommodate approximately 1,200 guests. The company’s efforts to reward its shareholders through buybacks are added positive. On the flip side, similar to the third quarter of 2018, high costs are likely to hurt the company’s bottom line in the fourth quarter. Moreover, the company's high debt levels raise concerns. In fact, shares of Norwegian Cruise Line have declined 17.8% in a year's time.”
Several other equities analysts have also commented on NCLH. TheStreet lowered shares of Norwegian Cruise Line from a b- rating to a c+ rating in a research report on Monday, January 7th. Wedbush set a $65.00 price objective on shares of Norwegian Cruise Line and gave the company a buy rating in a research report on Wednesday, December 26th. Deutsche Bank set a $68.00 price objective on shares of Norwegian Cruise Line and gave the company a buy rating in a research report on Friday, November 9th. Sanford C. Bernstein upgraded shares of Norwegian Cruise Line from a market perform rating to an outperform rating in a research report on Tuesday. Finally, JPMorgan Chase & Co. reiterated a buy rating on shares of Norwegian Cruise Line in a research report on Thursday, October 11th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and ten have issued a buy rating to the company’s stock. The stock presently has a consensus rating of Buy and a consensus price target of $62.45.
Norwegian Cruise Line (NASDAQ:NCLH) last released its quarterly earnings data on Thursday, November 8th. The company reported $2.27 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $2.21 by $0.06. The business had revenue of $1.86 billion for the quarter, compared to the consensus estimate of $1.85 billion. During the same quarter last year, the business earned $1.86 EPS. Norwegian Cruise Line’s revenue for the quarter was up 12.5% compared to the same quarter last year.
In other news, CEO Rio Frank J. Del sold 3,077 shares of the stock in a transaction on Monday, October 15th. The shares were sold at an average price of $51.03, for a total value of $157,019.31. Following the sale, the chief executive officer now owns 304,398 shares of the company’s stock, valued at $15,533,429.94. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Andrew Stuart sold 6,500 shares of the stock in a transaction on Wednesday, December 12th. The shares were sold at an average price of $48.22, for a total transaction of $313,430.00. Following the completion of the sale, the chief executive officer now directly owns 353,934 shares in the company, valued at approximately $17,066,697.48. The disclosure for this sale can be found here. In the last three months, insiders sold 15,741,436 shares of company stock worth $794,928,498. Insiders own 0.98% of the company’s stock.
Several institutional investors and hedge funds have recently made changes to their positions in NCLH. Capital World Investors raised its stake in shares of Norwegian Cruise Line by 49.4% in the third quarter. Capital World Investors now owns 15,620,156 shares of the company’s stock valued at $897,066,000 after acquiring an additional 5,168,349 shares during the period. FIL Ltd purchased a new position in Norwegian Cruise Line in the 3rd quarter worth about $61,910,000. Janus Henderson Group PLC increased its stake in Norwegian Cruise Line by 9.3% in the 3rd quarter. Janus Henderson Group PLC now owns 11,002,326 shares of the company’s stock worth $631,864,000 after buying an additional 934,851 shares during the period. Bank of New York Mellon Corp increased its stake in Norwegian Cruise Line by 31.8% in the 2nd quarter. Bank of New York Mellon Corp now owns 3,482,343 shares of the company’s stock worth $164,541,000 after buying an additional 840,909 shares during the period. Finally, Scopus Asset Management L.P. increased its stake in Norwegian Cruise Line by 101.1% in the 3rd quarter. Scopus Asset Management L.P. now owns 955,000 shares of the company’s stock worth $54,846,000 after buying an additional 480,000 shares during the period. 88.85% of the stock is currently owned by institutional investors and hedge funds.
Norwegian Cruise Line Company Profile
Norwegian Cruise Line Holdings Ltd. (NCLH) is a global cruise company. The Company operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands. The Company had 25 ships with approximately 50,400 Berths, as of May 1, 2017. The Company’s brands offer itineraries to various destinations around the world, including Europe, Asia, Australia, New Zealand, South America, Africa, Canada, Bermuda, Caribbean, Alaska and Hawaii.
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