Royal Caribbean: 3 Different Insiders Have Sold Shares This Year

| About: Royal Caribbean (RCL)

In this article, I will feature one cruise company that has seen intensive insider selling during the last 30 days. Intensive insider selling can be defined by the following three criteria:

  1. The stock was sold by three or more insiders within one month.
  2. The stock was not purchased by any insiders in the month of intensive selling.
  3. At least two sellers decreased their holdings by more than 10%.

Royal Caribbean Cruises (NYSE:RCL) operates as a cruise company worldwide.

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Insider selling during the last 30 days

Here is a table of Royal Caribbean's insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Bernt Reitan Director Feb 7 10,014 No 28,452 shares 26.0%
Michael Bayley Pres, CEO, Celebrity Cruises Feb 4 11,006 No 38,773 shares + 12,843 options 17.6%
Gonzalo Chico Barbier President & CEO, Pullmantur SA Jan 29 11,635 No 65,648 shares 15.1%
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There have been 32,655 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Royal Caribbean's insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
February 2014 21,020 0
January 2014 11,635 0
December 2013 0 0
November 2013 15,729 0
October 2013 70,923 0
September 2013 47,363 0
August 2013 32,020 0
July 2013 45,350 26,800
June 2013 0 0
May 2013 5,500 0
April 2013 31,274 0
March 2013 27,134 0
February 2013 14,161 0
January 2013 0 0
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There have been 322,109 shares sold, and there have been 26,800 shares purchased by insiders since January 2013.

Financials

Royal Caribbean reported the full-year 2013 financial results on January 27 with the following highlights:

Revenue $8.0 billion
Net income $473.7 million
Cash $204.7 million
Debt $8.1 billion
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Outlook

Royal Caribbean's adjusted EPS for 2014 is expected to be in the range of $3.20 to $3.40 per share.

(Source: Earnings presentation)

Royal Caribbean's adjusted EPS for the first quarter is expected to be in the range of $0.20 to $0.30 per share.

(Source: Earnings presentation)

Competition

Royal Caribbean's competitors include Carnival Corporation (NYSE:CCL), and Norwegian Cruise Line Holdings (NASDAQ:NCLH). Here is a table comparing these companies.

Company RCL CCL NCLH
Market Cap: 11.24B 31.09B 7.27B
Employees: N/A 92,700 13,800
Qtrly Rev Growth (yoy): 0.03 0.02 0.18
Revenue: 7.96B 15.46B 2.47B
Gross Margin: 0.33 0.32 0.36
EBITDA: 1.61B 3.16B 619.46M
Operating Margin: 0.11 0.10 0.16
Net Income: 473.69M 1.08B 66.68M
EPS: 2.14 1.39 0.33
P/E: 23.83 28.83 106.31
PEG (5 yr expected): 0.80 1.40 0.63
P/S: 1.40 2.00 2.92
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Norwegian Cruise Line Holdings has the fastest revenue growth among these three companies.

Here is a table of these competitors' insider-trading activities during the last 12 months.

Company Insider buying / shares Insider selling / shares
CCL 40,000 269,738
NCLH N/A N/A
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Carnival has also seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling Royal Caribbean, and there have not been any insiders buying Royal Caribbean during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Royal Caribbean has an insider ownership of 1.40%.

Before going short Royal Caribbean, I would like to get a bearish confirmation from the Point and Figure chart. The main reason for the proposed short entry is the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.