Carnival Corp. (NYSE: CCL) shares sank on Wednesday after the cruise line operator announced that it would be canceling cruises for the first part of 2021. Carnival wasn’t the only stock that felt the sting of these cancelations.
Carnival is canceling all embarkations from U.S. homeports for the month of January. Additionally, embarkations from Baltimore, Charleston, Jacksonville, Long Beach, Mobile, New Orleans and San Diego will be canceled through the end of February. Also, embarkations on Carnival Legend out of Tampa will be canceled through March 26.
Carnival previously canceled operations in Australia through March 2, 2021.
In total, 16 Carnival ships are currently following the CDC process for an eventual resumption of guest service in the United States in 2021.
The company previously canceled certain other itineraries on four ships (Magic, Paradise, Valor and Victory/Radiance) that are scheduled for required dry docks in the first half of 2021, with the plan to return them to operations after maintenance work and upgrades are completed.
Both Royal Caribbean Group (NYSE: RCL) and Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) had sympathy pains for Carnival’s cancellations. However, Norwegian Cruise Line is in the midst of a capital raise via a secondary offering.
Norwegian Cruise Line is offering 40.0 million shares at a price of $20.80 apiece, implying an aggregate value of $832 million for the offering. The cruise company has a total market cap of roughly $5.73 billion. It expects to use the net proceeds from the offering for general corporate purposes.
Carnival stock traded down about 3% to $17.55 on Wednesday, in a 52-week range of $7.80 to $51.94. The consensus price target is $16.69.
Royal Caribbean traded down about 1%, at $74.82 in a 52-week range of $19.25 to $135.32. The consensus analyst target is $59.23.
Norwegian Cruise Line stock was down about 5% to $21.04. The 52-week range is $7.03 to $59.78, and analysts have a consensus price target of $19.85.
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
