Raymond James Financial Inc. trimmed its stake in Norwegian Cruise Line Holdings Ltd. (NCLH) by about 7.5% in the first quarter, according to its latest SEC filing. The firm held 685,056 shares after selling 55,856 during the quarter, representing roughly 0.15% of Norwegian Cruise Line’s outstanding stock and a value of about $12.99 million.
Several other hedge funds were active in Norwegian Cruise Line in recent periods. New Age Alpha Advisors LLC opened a new position valued at around $33,000 in the first quarter. Versant Capital Management Inc more than doubled its exposure, increasing its stake by 147.7% to 1,880 shares worth about $36,000 after adding 1,121 shares in the quarter. Raiffeisen Bank International AG initiated a new position in the stock in the fourth quarter valued at about $40,000. Bogart Wealth LLC surged its holding by 1,012% in the first quarter, bringing its total to 2,224 shares valued at about $42,000 after purchasing an additional 2,024 shares. LRI Investments LLC also started a new position in the fourth quarter valued at roughly $47,000. Overall, institutional investors owned about 69.58% of Norwegian Cruise Line.
In trading terms, Norwegian Cruise Line opened at $24.87 on Friday. The company carries a debt-to-equity ratio of 8.05, a current ratio of 0.18 and a quick ratio of 0.16. Its market capitalization stands around $11.24 billion, with a price-to-earnings multiple of 17.15 and a price-to-earnings growth ratio of 1.15. The stock’s beta is 2.24, reflecting higher volatility relative to the market. Norwegian Cruise Line has traded in a range over the past year from a low of $14.21 to a high of $29.29. The stock sits above its 200-day moving average of $20.60 and near its 50-day moving average of $23.21.
The company last reported quarterly results on July 31, posting earnings of $0.51 per share, just missing the consensus estimate of $0.52. Return on equity came in at 59.88%, with a net margin of 7.52%. Revenue for the quarter totaled $2.52 billion, slightly below the $2.55 billion analysts had expected, though this marked a 6.1% increase in revenue year over year. For the current outlook, Norwegian Cruise Line guided to a fiscal 2025 earnings per share in the range of $2.05, with third-quarter guidance around $1.14 per share. Analysts, on average, expect about $1.48 per share for the current fiscal year.
Among sell-side views, several analysts recently nudged price targets higher. Susquehanna increased its target to $25 with a neutral rating, Mizuho lifted its target to $29 with an outperform rating, Jefferies raised its target to $29 and gave a buy rating, Tigress Financial boosted its target to $38 with a strong-buy rating, and Citigroup moved its target to $30 with a buy rating. The current consensus from MarketBeat is a Moderate Buy rating, with a average target price around $27.50.
Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands, offering itineraries across multiple regions and a wide range of voyage durations.
Commentary and context for readers:
– The ongoing mix of stake reductions by larger funds alongside new small-position entries suggests a nuanced investor stance, weighing the company’s recent earnings performance against its growth prospects and the cruise industry’s sensitivity to consumer demand and macro conditions.
– The stock’s elevated debt load and liquidity measures are important factors to watch, as is the company’s ability to deliver on guidance in a competitive leisure travel market.
– With several brokers signaling upside potential through raised price targets and the overall Buy-associated sentiment, investors may view any pullbacks as potential entry points, while risk remains connected to industry cycles and consumer spending.
Summary:
Norwegian Cruise Line saw mixed quarterly results and a modest earnings miss, but revenues rose and several analysts still project upside. Large investors continue to adjust holdings, with a blend of reductions and new positions across a spectrum of firms. The stock trades in the mid-20s, with volatility and debt levels notable, while the analyst community remains cautiously optimistic about its longer-term trajectory.