Two cruise line stocks that had a large insider buying despite dull performance

Two cruise line stocks that had a large insider buying despite dull performance
4 weeks ago
3 mins read

Cruise line operators shared the same fate as the tech stocks, losing double-digit percentages in market values during 2022. Given that some people remain unwilling to travel following the pandemic, it seems as if cruise line operators can’t catch a break now that their values have been impacted.

Yet, the travel industry is expected to make a comeback, and industry insiders seem to be placing bets on their firms capturing the lion’s share of the travel market during this season.

In particular, there are two companies within the cohort that have had significant purchases made by business insiders, and Finbold has analyzed both of these firms in-depth below despite their stocks recently having lackluster performances.  

Norwegian Cruise Line Holdings Ltd (NYSE: NCLH)

Norwegian Director Russell W. Galbut shelled out roughly $1.5 million on May 23, to buy up 100,000 shares of his company, as per an SEC form.

 In its latest earnings report, the company missed earnings per share (EPS) by $0.41, making it a total of -$1.82 EPS. Similarly, the miss on revenue was substantial as the company missed by $238.44 million, having total revenue of $521.9 million. 

Likewise, shares have dropped over 26% year-to-date (YTD), trading below all daily Simple Moving Averages (SMAs). In more recent sessions, an increase in volume led to a 5% pop, but the possible resistance around $17 would have to be broken for the stock to move up.   

NCLH  20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

On the other hand, analysts on Wall Street, rate the shares as a moderate buy. The next 12 months’ average price prediction is $23.09, or 42.53% higher than the current trading price of $16.20.

NCLH  analysts’ price target. Source: TipRanks

Carnival Corp (NYSE: CCL)

Carnival Chairman Randall Weisenburger paid $1.2 million on May 25, for 100,000 shares of his company, as per an SEC form filed on the same day. This would be the first purchase from Weisenburger since April 2020.

 In their latest earnings update, the company posted an EPS of -$1.66, which represents a miss of $0.38. Similarly, revenues were $1.62 billion, representing a miss of $640 million. 

Comparably, shares are down over 34% YTD, now trading below all SMA’s. Volume increases have been noted in May; however, the resistance at $16 would possibly need to be broken for the stock to head higher. 

CCL  20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

Analysts rate the shares a hold, predicting that in the next 12 months, the shares could reach $21.44, representing a potential increase of 53.47% from the current price level of $13.97.

CCL analysts’ price target. Source: TipRanks

Travel will likely return better than it has due to the pent-up demand caused by the lockdown periods. 

Whether that bodes well for cruise lines is still to be seen; if they manage to capture a large part of the travel demand, there could be a potential recovery for these stocks; if not, then share depreciation will likely continue. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

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Dino Kurbegovic

Dino is an investor and technology enthusiast with years of experience in managing complex projects. At Finbold he covers stories on stocks, investing, micro and macroeconomic trends. Also, he’s also building a micro solar power plants in his hometown.