Carnival Corp.(CCL 8.53%) and its smaller peers are profitable again, and back at pre-pandemic performance levels in some key metrics. However, cruise line stocks have pulled back sharply from their recent summertime highs.
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However, investors should note that Carnival's debt levels more than tripled throughout the COVID-19 crisis. It ended the first quarter of fiscal 2023 with $32.7 billion in long-term debt, compared to $9.7 billion at the end of fiscal 2019, which gives it a staggering debt-to-equity ratio of 5.6.
Carnival has 45.58% upside potential, based on the analysts' average price target. Carnival has a conensus rating of Strong Buy which is based on 10 buy ratings, 3 hold ratings and 0 sell ratings. The average price target for Carnival is $18.27.
What are the benefits of holding Carnival cruise shares? Anyone that owns 100 shares or more of the Carnival Corporation can enjoy an amount of onboard credit on their next cruise, up to $250 on sailings on cruise lines operating out of the US.
Carnival is finally recovering from its worst two years in recent history, and its outlook seems stable. However, the debt it accumulated during the pandemic remains an albatross around its neck. While the stock looks cheap, investors should tread with caution for now.
On average, Wall Street analysts predict that Carnival's share price could reach $18.23 by Oct 2, 2024. The average Carnival stock price prediction forecasts a potential upside of 33.67% from the current CCL share price of $13.64.
Is Carnival stock a Buy, Sell or Hold? Carnival stock has received a consensus rating of buy. The average rating score is and is based on 35 buy ratings, 19 hold ratings, and 13 sell ratings.
How Much Debt Does Carnival Corporation & Carry? The chart below, which you can click on for greater detail, shows that Carnival Corporation & had US$33.8b in debt in May 2023; about the same as the year before. However, it also had US$4.47b in cash, and so its net debt is US$29.3b.
(CCL) in the U.S. and as Carnival plc (CCL) on the London Stock Exchange. The top individual shareholders of Carnival are Randall J.Weisenburger, Arnold W.Donald, and David Bernstein, and the top institutional shareholders are Micky Meir Arison, Vanguard Group Inc., and Public Investment Fund.
One common explanation for the difference involves special voting rights connected to Carnival Corporation shares. As part of the 2003 merger of Carnival and P&O Princess Cruises PLC, shares of Carnival Corporation were paired with trust shares in a special voting trust.
Carnival and Disney paused dividend payments due to complications from the pandemic. Fool.com contributor Parkev Tatevosian evaluates Carnival (CCL -5.19%) and Disney (DIS -0.89%) to determine which company is in a better financial position to pay a dividend.
The world's largest cruise line operator is trading 126% higher in 2023. It might not be too late to hop aboard. The waves keep rising for Carnival (CCL -6.60%). Shares of the world's largest cruise line operator have more than doubled this year, and the Wall Street accolades keep coming.