Royal Caribbean Cruises
One name in the hotel, resort and cruise line sector where key insiders have been snapping up a large amount of stock in is Royal Caribbean Cruises (RCL). This company operates in the cruise vacation industry worldwide in approximately 420 destinations. Insiders are clearly finding some deep value here since they are buying into a stock that's down over 40% so far this year.
Royal Caribbean Cruises has a market cap of $5.6 billion and an enterprise value of $13.66 billion. This stock trades at a very reasonable valuation, since its trailing price-to-earnings is 9.7 and its forward price-to-earnings is 7.5. Their estimated growth rate for this year is 35.2% and for next year it's pegged at 20.1%. This is far from a cash-rich company, since their total cash position is just over $551 million and their total debt is a whopping $8.6 billion. The CEO and chairman of the board just bought 66,000 shares, or $1,499,533 worth of stock, at $22.72 per share.From a technical standpoint, this stock is trading significantly below both its 50-day and 200-day moving averages, which is bearish. The stock also recently formed a triple top chart pattern at around $64 a share. This stock has been stuck in a nasty downtrend since the start of the year with shares making lower highs and mostly lower lows. That said, upside volume has been picking up recently as the stock has found some buying interest at around $22.27 to $23.41 a share. If you want to buy this stock, then I would look to get long once it trades above some near-term overhead resistance at $26.62 a share on strong volume. I would then add to any long position if it trades above its 50-day moving average of $31.19 a share on solid volume. Look for volume on either move that's tracking in close to or greater than its three-month average action of 3.4 million shares. One could also be a buyer of this stock on any pullback as long as it doesn't trade below $23.40 a share in the near-term. The strategy here would be to anticipate the breakout over $26.62 with a stop a few percentage points below your entry.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV