- Carnival Corp's shares closed the week by consolidating previous gains.
- Insider buying may boost CCL as traders return from a long weekend.
- Americans may begin booking cruises soon, as the summer season kicks off.
Americans are enjoying the long Memorial Day weekend and may have spare time to plan a longer vacation – perhaps on a cruise ship. Scenes of people crowding boardwalks in several places cause worries about the second wave of infections but also show an urge to have a good time. As the summer season begins, stocks of Carnival Corp may rise as the short trading week begins on May 26.
However, another reason for a potential move to the upside comes from reports about insider buying. Randall J. Weisenburger, a Board Director at the firm, increased his stake by 997% in early April and the Saudi Public Investment Fund also chipped in. Both developments are public knowledge, reported by the Securities and Exchanges Commission (SEC).
Perhaps most importantly – especially in comparison to rivals – Carnival has improved its financial position, ensuring it has enough liquidity to work through during these turbulent times. Arnold Donald, the corporation CEO, said that recent actions such as the stock sale have provided some $6.4 billion in additional liquidity. Moreover, he added that "fewer than 38% are requesting refunds" – despite the scare of the Princess Diamond and other incidents.
CCL Stock Dividend
If fewer people are canceling and new ones may book a cruise, shares may rise and NYSE:CCL may still pay a dividend. While shareholders cannot expect the payout to rise is in previous years, improving financial prospects provide hope.
At the current price, CCL has nearly doubled from the lows, but it is far from the peak. The 52-week high was $53.06. The low was $7.80. The firm is worth around $10 billion at the time of writing.
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