CCL Stock Price: Carnival Corp unlikely to make gains due to continuing COVID-19 concerns


  • Continuing health concerns due to recent COVID19 infections will hold Carnival Cruise Lines until there is further clarity.
  • NYSE: CCL searching for loans after worse than expected 2nd QTR results.

Carnival Corp NYSE: CCL has seen a volatile last month rising to nearly $25 in its COVID-19 crash and then falling back to the current mid-16s.  Most analysts and indicators have NYSE: CCL as a 'Hold' or 'Sell', as the coronavirus continues to ravage Sunbelt states and Carnival searches for loans.  

Two other cruise lines, Royal Caribbean and Norwegian Cruise Line, have recently been downgraded by Barclays showing further concern for the industry, which is having a halo effect on NYSE: CCL. The memory of 61 cruise ships stranded in either foreign countries or in open water unable to dock and a new surge in COVID outbreaks will likely have a long term impact on NYSE: CCL’s business.

NYSE: CCL gains unlikely

 

Tuesday’s Carnival Corp open of $16.55 had an initial sell-off dropping 1.5% to break support at 16 down to 15.85 and then rebounding by 11 am back to 16.50 where it stayed for the rest of the day, with a brief upward run to 16.71 and closing at 16.42, and with a lower than normal volume of 24.4M shares.

Carnival NYSE: CCL issued a less serious warning for its future as well as its liquidity alongside its preliminary June 18th Q2 results of -3.30/share – lower than expected -$1.83/share, but since has priced two senior secured term loans of a $1.86B tranche and an €800M tranche.

13 of 17 daily moving average indicators are currently showing a 'Sell' signal for Carnival Cruise Lines, while 8 of 11 oscillators show NYSE: CCL as neutral.  Additionally, 13 of 20 analysts have Carnival Corp as 'Hold' with the other 7 splits between 'Buy' and 'Underperform', with one change from buy to hold in the past month.

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