Royal Caribbean Shares Surge After-Hours On Dividend Hike, $1B Share Repurchase: Retail’s Optimistic

Shares of Royal Caribbean Group ($RCL) rose 1.6% in after-hours trading on Wednesday after it announced the repurchase of up to $1 billion of common stock and declared a quarterly dividend of $0.75 per common share, lifting retail sentiment.

The dividend is payable on April 4, 2025, to shareholders of record at the close of business on March 7, 2025. The repurchase of up to $1 billion of the company's stock will take place over the next 12 months, the company said.

"Our strong performance and balance sheet position allows us to further expand capital allocation while we invest in the future." said Jason Liberty, president and CEO, Royal Caribbean Group.  "With today's announcement, nearly $500 million in dividends have been paid or declared in the last four months. Coupled with the newly authorized share repurchase program, these actions reflect our confidence in our business, our focus on disciplined capital allocation, and our commitment to delivering long-term value for shareholders."

Sentiment on Stocktwits improved to ‘bullish’ from ‘neutral’ a week ago. Message volumes were in the ‘normal’ zone compared to ‘high.’

Recently, Tigress Financial raised the price target on Royal Caribbean to $330 from $270 with a Buy rating, Fly.com reported. According to the firm, Royal continues to benefit from operating revenue and cash flow growth, helped by solid  cruise demand and ongoing fleet and land-based resort expansion.

The analyst firm sees Royal Caribbean poised to win further share in the $2 trillion global vacation market.

For its latest quarter, Royal Caribbean’s adjusted earnings per share came in at $1.63, beating Wall Street analyst estimates of $1.49. Its revenues stood at $3.76 billion, in line with consensus estimates. The company cited stronger pricing on close-in demand as drivers behind the growth.

Royal Caribbean operates under the brands Royal Caribbean International, Celebrity Cruises, and Silversea Cruises.
Royal Caribbean stock is up 11% year-to-date.

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