Carnival Corporation & Plc (CCL) Stock Ready To Kick Into High Gear

Stock analysts at SunTrust cut their rating on shares of Carnival Corporation & Plc (NYSE:CCL) from Buy to a new rating of Hold in their opinion released on November 21. HSBC Securities analysts have downgraded their rating of CCL shares from Buy to Hold in a separate flash note to investors on October 07. Analysts at UBS downgraded the company stock to a Neutral call from its previous Buy stance, in a flash note that dated back to September 27.

Let’s take a glimpse at some insider activity at Carnival Corporation & Plc (NYSE:CCL) and observe the pattern. The earliest insider trade happened on 10/03/2019. BAND SIR JONATHON parted with a total of 5 thousand shares of the firm at average share price of $40.83. The total amount for the sale was set at $204.15 thousand. On completing this exchange, the Director account balance was 18.74 thousand shares. The stock grew 8.96 percent from that insider sale. On 07/03/2019, WEISENBURGER RANDALL J, Director, did a purchase of 20 thousand shares at a price of $46.5 per share. This increased 930 thousand shares to the insider’s fortune and the stock experienced a -4.32 percent retreat in price since the news became public. This exchange saw 122.93 thousand shares get into the Director account. On 06/25/2019, President & CEO DONALD ARNOLD W recorded a purchase transaction valued at $997.32 thousand. The purchase at $45.23 a share has added 22.05 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed -1.64 percent decrease since the transaction reporting date. The company insider is left with 603.91 thousand shares remaining in the account. Bernstein David, who works as CFO & CAO at the company, performed a sale of 24.68 thousand shares in a transaction worth $1.41 million. The disposal recorded on 02/15/2019 was priced at $57.08 per share. The stock price plunged -22.06 percent since the transaction. Bernstein David currently holds a stake of 45.68 thousand in CCL stock which is worth $2.03 million after the insider selling.

The stock is lingering around the initial support level of $44.23. After this, the following support is at the zone of $43.96. Up until the time the CCL stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 54.51 on the daily chart, and this may be a cause for concern. In case the price goes below $43.96 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $44.97 level may cause a pull-back move approaching $45.44 mark.

On December 02, 2019, Carnival Corporation & Plc (NYSE:CCL) shares lost -1.31% or -0.59 points to close at $44.49 with a thin trading volume of 3.339 million shares. It opened the trading session at $45.16, the shares rose to $45.18 and dropped to $44.44, the range by which the price of stock traded the whole day. The company now has a market cap of $30 billion and currently has 674.85 million outstanding shares. Carnival Corporation & Plc (CCL) stock has accumulated 3.73 percent of market value in 21 trading days.

CCL stock’s trailing 3-year beta is 1.1, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $4.42 share in the trailing 52 weeks. The stock’s value fallen -9.76 percent year to date (YTD) compared to a decline of -26.74 percent in 52 week’s period. The firm’s shares are still trading -27.43 percent below its 1-year high of $61.31 and 11.45 percent up from 52-week low of $39.92. The average consensus ranking on the company is 2.6, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Carnival Corporation & Plc (CCL) shares are trading at a P/E ratio of 10 times earnings posted in the trailing 12 months. The industry CCL deals with has an average P/E of 16.8. Its P/B ratio is standing at 1.3X compared to the 2.7 industry average. It is additionally sporting a 1.5 on the Price-to-Sales ratio, compared to the industry’s P/S average of 2.6. Carnival Corporation & Plc has a 38.7% gross profit margin, with its operating margin around 16.3%. Alongside this, the company’s net profit margin currently stands at 14.9%.

Past records have indicated that shares in Carnival Corporation & Plc declined on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.