Today at 6:32 AM ET, Carnival (NYSE:CCL) stock rose 11% to $16.00 in the pre-market session. The cruise operator has been benefiting from various positive developments. The number of COVID-19 cases has declined in the US and other developed countries. Investors also cheered the phase-in reopening of various economies and hopes of a new COVID-19 vaccine.
Carnival stock rose due to positive developments
Novavax (NASDAQ:NVAX), a biotech company, has started the Phase I study of its experimental COVID-19 vaccine candidate NVX-CoV2373. Also, Moderna will likely start the Phase II trial of its coronavirus vaccine candidate mRNA-1273 in July. Carnival’s elderly clientele should feel more comfortable when immunization is easily available.
A report from FXStreet said, “However, another reason for a potential move to the upside comes from reports about insider buying. Randall J. Weisenburger, a Board Director at the firm, increased his stake by 997% in early April and the Saudi Public Investment Fund also chipped in.” The report added, “Perhaps most importantly – especially in comparison to rivals – Carnival has improved its financial position, ensuring it has enough liquidity to work through during these turbulent times.”
In the first quarter, which ended in February, Carnival’s total revenues rose 2.5% to $4.79 billion from the first quarter of 2019. The company reported an adjusted EPS of $0.22 compared to $0.49 in the first quarter of 2019. Wall Street analysts expected the company to report an EPS of $0.26 on sales of $4.68 billion.
Wall Street analysts expect Carnival to report an EPS of -$1.45 on revenue of $1.1 billion in the second quarter. Analysts also expect the company’s revenues to fall by 43.6% YoY (year-over-year) in fiscal 2020 to $11.75 billion. The sales could rise by 35.6% YoY in fiscal 2021 to $15.9 billion. Meanwhile, the EPS will likely fall from $4.40 in fiscal 2019 to -$2.30 in fiscal 2020. Analysts expect an EPS of $0.03 in fiscal 2021.
Analysts’ recommendations for Carnival stock
Currently, four out of 19 analysts have a “buy” recommendation for Carnival stock. Meanwhile, 13 analysts recommend a “hold” and two recommend a “sell.” Analysts have an average target price of $18.03 on the stock. The target price implies a return of 25% based on the closing price of $14.46 on May 22. The consensus target price for the stock has fallen from $23.83 in April—a fall of 24%.
On May 22, Carnival stock fell 0.96% and closed at $14.46 with a market cap of $10.5 billion. The stock has returned -73% in the last 12 months and 24% in the last month. The stock is trading 85.4% above its 52-week low of $7.80 and 73.2% below its 52-week high of $53.86.
On May 22, Carnival stock was trading 3.9% above its 20-day moving average of $13.92. Meanwhile, the stock is trading 12% above its 50-day moving average of $12.91 and 47% below its 100-day moving average of $27.27. The stock’s 14-day relative strength index score of 52 indicates that it isn’t oversold or overbought.
Carnival stock has an upper Bollinger Band level of $16.10, while its lower Bollinger Band level is $11.73. On May 22, Carnival stock closed near its middle Bollinger Band level of $13.92, which indicates that it isn’t oversold or overbought.
At 7:30 AM ET today, the S&P 500 futures rose 1.84%, while the Dow futures rose 2.02%.
Read Is Carnival Stock Worth Your Attention Right Now? to learn more.