Is Carnival PLC (LON:CCL) Now a Sell? Numis Downgrades Stock


Carnival PLC (LON:CCL) Receives a Downgrade

In a note shared with investors and clients moments ago, Numis cut their rating for shares of Carnival PLC (LON:CCL) to a Hold. Analysts currently have set a GBX 3600.00 target PPS on the stock. Numis’s target PPS suggests a possible upside of 3.90% from the closing share price of the stock.

From a total of 11 analysts covering Carnival PLC (LON:CCL) stock, 7 rate it a ”Buy”, 1 a “Sell”, and 3 a ”Hold”. This means that 64% of the ratings are positive. The highest target price is GBX 65.77 while the lowest target price is GBX 36.17. The mean of all analyst targets is GBX 53.59 with a -3.29% below today’s (GBX 3455) stock price. Carnival PLC was the topic of 20 analyst reports since August 5, 2015 according to the firm StockzIntelligence Inc. Nomura downgraded shares on December 8 to “Hold” rating. Deutsche Bank maintained shares with “Buy” rating and GBX 3650 target share price in a report from a September 24. Credit Suisse maintained CCL stock in a recent report from November 24 with “Outperform” rating. Numis Securities maintained the rating on September 23. Numis Securities has a “Add” rating and a GBX 3600 price target on shares. Finally, Jefferies maintained the stock with “Hold” rating in a report issued on a September 25.

Approximately 99,631 shares of stock traded hands. Carnival plc (LON:CCL) has risen 13.07% since May 11, 2015 and is uptrending. It has outperformed by 13.66% the S&P500.

 Is Carnival PLC (LON:CCL) Now a Sell? Numis Downgrades Stock

Analysts await Carnival Corp (NYSE:CCL) to reports earnings on December, 18. They expect $0.40 earnings per share, up 48.15% or $0.13 from last year’s $0.27 per share. CCL’s profit will be $314.03M for 31.67 P/E if the $0.40 EPS becomes reality. After $1.75 actual earnings per share reported by Carnival Corp for the previous quarter, Wall Street now forecasts -77.14% negative EPS growth.

The overall sentiment of institutions has increased to 1.65 in Q2 2015. Its up 0.46, from 1.19 in 2015Q2. The ratio is positive, as 37 institutions have sold all the shares of Carnival plc that they owned while 155 funds have taken shares off the table. 84 funds have purchased shares for the first time while 233 added to their positions. These institutions now hold 465.12 million shares or 1.39% more than the 458.75 million shares they owned in 2015Q2.

The Fund Trinity Street Asset Management Llp currently is holding shares equating to 13.32% of its total portfolio in Carnival plc representing a total of 981,746 shares. Another fund,Suntrust Banks Inc, is holding a total of 38.55 million shares equating to 12.94% of their holdings. Additionally, Black Creek Investment Management Inc. has a 1.75 million share stake in Carnival plc which represents 11.42% of their total portfolio. The Fund, Edinburgh Partners Ltd, based out of United Kingdom, has also built up a stake in the stock, which represents a total of 10.61% of their total portfolio. Finally Oceanic Investment Management Ltd, a fund which is based in the state of Isle Of Man reported a total holdings of 550,000 shares.

Insider activity is a very important aspect to track on any stock. Going back to May 11, 2015, shareholders of Carnival plc have witnessed 0 buys, and a total of 2 selling transactions equating to a net activity of approximately $770,167 . Donald Arnold W sold 5,000 shares worth approximately $249,741. Glasier Richard sold 10,000 shares worth approximately $520,426.

Carnival plc is a cruise vacation company. The company has a market cap of 25.96 billion GBP. The Firm has three cruise divisions that consist of North America cruise brands, Europe, Australia & Asia cruise brands, and Cruise Support. It has 29.51 P/E ratio. In addition, it also has a Tour and Other segment.

According to Zacks Investment Research, “Carnival Corporation & plc is the largest cruise company in the world, with a portfolio of 10 cruise brands in North America, Europe, Australia and Asia, comprised of Carnival Cruise Line, Holland America Line, Princess Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, P&O Cruises (Australia), P&O Cruises (UK) and Fathom.” Get a free copy of the Zacks research report on Carnival plc (CCL).