Carnival Corporation (CCL) Stock: Why It’s Gaining In Value


Carnival Corporation (CCL) is making a move up in the market in today’s trading session. The stock, focused in the service sector, is presently trading at $56.42 after gaining -1.47% so far today. When it comes to service sector companies, there are a number of aspects that have the ability to cause gains in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines surrounding CCL:

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Mar-22-19 07:39PM Don’t Be a Hero: Cramer’s ‘Mad Money’ Recap (Friday 3/22/19)
Mar-21-19 03:40PM Three Holland America Line Ships Explore the Colorful Culture of the Mexican Riviera in 2019-2020
Mar-20-19 01:34PM Cunard Uncorks Line-up of Speakers for 2019 Wine Voyage
08:30AM Carnival Corporation Wins Neptune Award as Greenest Shipowner of the Year
06:00AM Biggest Lender in Brazil Puts Distressed Real Estate Up for Sale

Nonetheless, when making a decision to invest, prospective investors should look into much more than just news, especially in the ever highly complex service space. Here’s what’s happening in regard to Carnival Corporation.

Trends That We’ve Seen From CCL

Although a gain in a single session, like what we’re seeing from Carnival Corporation may lead to fear in some investors, a single session move by itself should not be the reason for a decision to, or not to, invest in a company. It is generally a good idea to look at trends experienced by the stock just a single trading day. When it comes to CCL, below are the returns that we have seen:

  • Past Seven Days – In the past seven days, CCL has generated a price change in the amount of -0.34%.
  • Past 30 Days – The monthly performance from Carnival Corporation works out to -3.17%.
  • Past Quarter – Throughout the past 3 months, the stock has produced a ROI that comes to 2.56%
  • Past Six Months – Over the last six months, investors have seen a performance that works out to -14.79% from the company.
  • This Year So Far – Since the close of last year CCL has resulted in a return on investment of 14.44%.
  • Annually – Finally, throughout the last full year, we have seen movement amounting to -15.87% out of CCL. Throughout this period of time, the stock has sold at a high price of -18.36% and a low of 23.62%.

Rations That Traders Should Consider

Digging into a few ratios having to do with a stock can provide investors a view of just how risky and/or potentially profitable a pick may be. Below are a few of the most important ratios to look at when digging into CCL.

Short Ratio – The short ratio is a tool that’s used to measure the amount of short interest. As the ratio climbs, it means that more investors are expecting that the price of the stock is going to climb. Throughout the sector, strong service stocks can come with a lower short ratio. However, we also tend to see quite a few short squeezes in the space. Nonetheless, when it comes to Carnival Corporation, it’s short ratio comes to 3.26.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Basically, they measure whether or not a company can pay for its debts when they mature based on quick assets or current assets. do have great quick and current ratios. When it comes to CCL, the quick and current ratios come to 0.20 and 0.20 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets owned by the company to the share price. when it comes to Carnival Corporation, that ratio comes in at 34.92.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the price of the company’s stock. In the case of CCL, the cash to share value is 1.44.

Moves From Big Money Players

An interesting fact that I have come to understand so far in my short period here has been that smart money tends to follow big money investors. Usually, investors that want to keep their investments relatively safe will pay close attention to trades made by institutional investors and those on the inside. So, where is the big money when it comes to CCL? Here’s the scoop:

Institutions own 79.60% of the company. Institutional interest has moved by -0.28% over the past three months. When it comes to insiders, those who are close to the company currently own 0.10% percent of CCL shares. Institutions have seen ownership changes of an accumulative -7.73% over the last three months.

How Analysts Feel About Carnival Corporation

While it’s rarely a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a good idea to consider their analysis when validating your own thoughts when it comes to making an investment decision in the service industry. Here are the most recent moves that we have seen from analysts when it comes to CCL.

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Mar-13-19 Upgrade Goldman Neutral → Buy $63 → $65
Jan-25-19 Upgrade Macquarie Neutral → Outperform
Dec-26-18 Initiated Standpoint Research Accumulate
Dec-17-18 Upgrade Cleveland Research Neutral → Buy
Sep-26-18 Resumed BofA/Merrill Buy $78

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $5.27. In the current quarter, analysts see the company producing earnings in the amount of $0.44. Over the last 5 years, CCL has generated revenue in the amount of $4.10% with earnings coming in at 26.70%. On a quarter over quarter basis, earnings have seen movement of -7.30% and revenue has seen movement of 4.60%.

What You Need To Know About Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 683.10M shares of Carnival Corporation outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, CCL has a float of 408.24M.

I also find it important to follow the short float. Think about it, when a high percentage of the float available for trading is shorted, the overall opinion among investors is that the company is going to fall hard. With regard to CCL, the percentage of the float that is currently being sold short sits at 3.09%. Most traders believe that a high short percent of the float would be considered to be anything over 40%. However, I have found that any short percent of the float over 26% is probably going to be a play that comes with hefty risk.

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