Zacks Research Downgrades Carnival (NYSE:CCL) to Strong Sell

Carnival (NYSE:CCL) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Thursday,Zacks.com reports. Zacks Research also issued estimates for Carnival’s Q2 2026 earnings at $0.34 EPS, Q1 2027 earnings at $0.11 EPS and FY2027 earnings at $2.58 EPS.

Other equities research analysts also recently issued reports about the stock. The Goldman Sachs Group decreased their price target on shares of Carnival from $34.00 to $30.00 and set a “buy” rating for the company in a research note on Wednesday, March 11th. Citigroup decreased their price target on shares of Carnival from $39.00 to $35.00 and set a “buy” rating for the company in a research note on Monday, March 30th. Sanford C. Bernstein decreased their target price on shares of Carnival from $33.00 to $28.70 and set a “market perform” rating for the company in a research report on Monday, March 30th. William Blair reissued an “outperform” rating on shares of Carnival in a research report on Tuesday, March 3rd. Finally, Weiss Ratings raised shares of Carnival from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, March 30th. Twenty-one research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Carnival currently has an average rating of “Moderate Buy” and a consensus target price of $33.99.

Carnival Stock Up 7.0%

Shares of NYSE:CCL opened at $29.21 on Thursday. The firm has a market cap of $36.19 billion, a P/E ratio of 12.98, a P/E/G ratio of 1.20 and a beta of 2.48. The company has a quick ratio of 0.26, a current ratio of 0.30 and a debt-to-equity ratio of 1.82. Carnival has a 12-month low of $17.05 and a 12-month high of $34.03. The business has a fifty day simple moving average of $28.02 and a 200 day simple moving average of $28.43.

Carnival (NYSE:CCL) last announced its earnings results on Friday, March 27th. The company reported $0.20 earnings per share for the quarter, topping analysts’ consensus estimates of $0.18 by $0.02. Carnival had a net margin of 11.48% and a return on equity of 26.92%. The business had revenue of $6.17 billion during the quarter, compared to the consensus estimate of $6.13 billion. During the same quarter last year, the firm earned $0.13 earnings per share. Carnival’s quarterly revenue was up 6.1% on a year-over-year basis. Analysts predict that Carnival will post 1.77 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Sir Jonathon Band sold 11,988 shares of the business’s stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $26.19, for a total transaction of $313,965.72. Following the transaction, the director directly owned 52,601 shares in the company, valued at approximately $1,377,620.19. The trade was a 18.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 7.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. CVA Family Office LLC boosted its holdings in Carnival by 15.6% during the fourth quarter. CVA Family Office LLC now owns 2,597 shares of the company’s stock worth $79,000 after purchasing an additional 350 shares during the last quarter. Net Worth Advisory Group boosted its holdings in Carnival by 2.9% during the fourth quarter. Net Worth Advisory Group now owns 12,383 shares of the company’s stock worth $378,000 after purchasing an additional 354 shares during the last quarter. Triad Wealth Partners LLC boosted its holdings in Carnival by 2.1% during the fourth quarter. Triad Wealth Partners LLC now owns 17,464 shares of the company’s stock worth $533,000 after purchasing an additional 358 shares during the last quarter. Commerzbank Aktiengesellschaft FI boosted its holdings in Carnival by 3.5% during the fourth quarter. Commerzbank Aktiengesellschaft FI now owns 10,540 shares of the company’s stock worth $322,000 after purchasing an additional 358 shares during the last quarter. Finally, StoneX Group Inc. boosted its stake in Carnival by 4.9% in the fourth quarter. StoneX Group Inc. now owns 7,935 shares of the company’s stock valued at $242,000 after acquiring an additional 368 shares during the last quarter. 67.19% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Carnival

Here are the key news stories impacting Carnival this week:

• Positive Sentiment: Energy/geopolitical relief — Iran says the Strait of Hormuz is open on a coordinated route, sending oil prices sharply lower and easing near-term fuel-cost concerns for cruise operators; that helped lift CCL shares intraday. Equities Rally Intraday, Oil Plunges After Iran Declares Hormuz Strait Open
• Positive Sentiment: Company fleet strategy — Carnival brands (notably Princess Cruises and Holland America) announced large LNG dual-fuel newbuilds and a multiyear upgrade program, signaling long-term cost efficiency (lower emissions/fuel flexibility) and growth in Asia that support the company’s multi-year earnings case. Princess Cruises LNG Fleet Expansion and Asia Push Might Change The Case For Investing In Carnival (CCL)
• Neutral Sentiment: Valuation check — Analysts and outlets are debating how the new LNG ships and refit programs change Carnival’s valuation and capex profile; that’s constructive long-term but increases near-term capital intensity and timing uncertainty. Carnival Corporation (CCL) Valuation Check After New LNG Ships And Holland America Evolution Program
• Negative Sentiment: Analyst downgrade / sell-list inclusion — Zacks added CCL to its Rank #5 (Strong Sell) list today, which can pressure sentiment and prompt short-term selling from momentum-focused investors. New Strong Sell Stocks for April 17th
• Negative Sentiment: Near-term demand and cost worries — Recent coverage flagged rising fuel costs and a softer consumer-spending outlook for travel/cruises, which previously sent shares lower and remain a headline risk if oil reverses or bookings slow. Why Carnival (CCL) Stock Is Nosediving
• Negative Sentiment: Legal/reputational risk — A high-profile verdict tied to onboard alcohol service draws negative publicity and potential liability exposure for the cruise industry; such cases can raise operating/legal costs and dent consumer perception. Carnival Cruise Line ordered to pay $300,000 for serving over a dozen shots of tequila to passenger before she fell down the stairs

About Carnival

Carnival Corporation (NYSE: CCL) is a global cruise operator that provides leisure travel services through a portfolio of passenger cruise brands. The company’s core business is operating cruise ships that offer multi-night voyages and associated vacation services, including onboard accommodations, dining, entertainment, spa and wellness offerings, casinos, youth programs, and organized shore excursions. Carnival markets cruise vacations to a broad range of consumers, from value-focused travelers to premium and luxury segments, through differentiated brand positioning and onboard experiences.

Its operating structure comprises multiple well-known cruise brands that target distinct geographic and demographic markets.