Four key executives at Royal Caribbean Cruises (RCL), including CEO Jason T. Liberty and Chief Financial Officer Naftali Holtz, have sold shares of the company totaling about $36.4 million. It is reasonable to assume that these insiders capitalized on the substantial rally of 113.3% in RCL stock over the past year. The stock outperformed the S&P 500 Index’s (SPX) gain of 23.3% in the same period.
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Investors should note that the insider sales come a week after the company announced plans to repurchase up to $1 billion of the company’s common stock over the next twelve months.
A Closer Look at the Transactions
According to the latest SEC filing, Liberty sold 58,000 shares of the company at $261.95 per share on February 18. The total value of the transaction is $15.19 million. Moreover, after the latest transaction, the total value of his holdings in RCL stock stands at about $37.81 million.
At the same time, Holtz divested 17,000 shares at $261.62 each, amounting to a total transaction value of $4.45 million. Following this sale, the total value of Royal Caribbean stock in his portfolio stands at $11.12 million.
Further, Michael Bayley, CEO of Royal Caribbean International, offloaded 49134 shares of the company at $262.07 each. The total transaction value is worth $12.9 million. With the completion of the latest transaction, Bayley holds shares of the company worth $8.72 million.
Finally, Laura H. Bethge, president of RCL’s Celebrity Cruises brand, sold 14,992 shares for a total value of $3.93 million, at an average price of $261.86 per share. Following the sale, Bethge holds shares of the company worth $5.61 million.
Insiders Sentiment for RCL Stock Is Currently Bearish
In addition to the four executives mentioned, some more corporate insiders at Royal Caribbean have decreased their stake in the company. Overall, TipRanks’ Insider Trading Activity Tool shows that insider confidence in Royal Caribbean stock is currently Very Negative. Corporate insiders have sold shares worth $151.5 million over the last three months.
However, this doesn’t necessarily signal trouble for the company. While Royal Caribbean is facing headwinds like higher fuel expenses and increased stock-based compensation costs due to a surge in share price, the company’s focus on boosting capacity and strong bookings demand for well for long-term growth.
Investors could keep close track of these notable insider activities, as they reflect the perceptions of key insiders about the company’s prospects. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is RCL a Good Stock to Buy?
Turning to Wall Street, RCL stock has a Strong Buy consensus rating based on 14 Buys and four Holds assigned in the last three months. At $290.18, the average Royal Caribbean price target implies an 18.98% upside potential.
