An analyst sees good growth prospects for Norwegian Cruise Line Holdings Ltd. (NCLH)

Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) stock fell -0.58% on Tuesday to $15.43 against a previous-day closing price of $15.52. With 11.88 million shares changed hands, the volume of the stock remained lighter than its average volume of 15.46 million shares. During the session, the Travel Services company that operates in wider Consumer Cyclical sector, reached to the highest price of $18.54 whereas the lowest price it dropped to was $14.95. The 52-week range on NCLH shows that it touched its highest point at $23.90 and its lowest point at $10.31 during that stretch. It currently has a 1-year price target of $18.97. Beta for the stock currently stands at 2.49.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NCLH was down-trending over the past week, with a drop of -3.56%, but this was up by 12.22% over a month. Three-month performance surged to 3.35% while six-month performance rose 30.54%. The stock lost -23.08% in the past year, while it has gained 26.06% so far this year. A look at the trailing 12-month EPS for NCLH yields -8.28 with Next year EPS estimates of 1.04. For the next quarter, that number is -0.86. This implies an EPS growth rate of 21.70% for this year and 124.10% for next year.

Float and Shares Shorts:

At present, 420.80 million NCLH shares are outstanding with a float of 419.66 million shares on hand for trading. On Oct 13, 2022, short shares totaled 42.2 million, which was 10.01% higher than short shares on Sep 14, 2022. In addition to Mr. Frank J. Del Rio as the firm’s Pres, CEO & Director, Mr. Mark A. Kempa serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 59.70% of NCLH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 33.64% of NCLH, in contrast to 24.66% held by mutual funds. Shares owned by individuals account for 16.11%. As the largest shareholder in NCLH with 10.76% of the stake, The Vanguard Group, Inc. holds 45,332,093 shares worth 45,332,093. A second-largest stockholder of NCLH, Capital Research & Management Co, holds 24,084,654 shares, controlling over 5.72% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in NCLH, holding 19,398,103 shares or 4.60% stake. With a 3.37% stake in NCLH, the American Funds Growth Fund of Ame is the largest stakeholder. A total of 14,178,473 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.03% of NCLH stock, is the second-largest Mutual Fund holder. It holds 12,776,406 shares valued at 156.38 million. Vanguard Small Cap Index Fund holds 2.58% of the stake in NCLH, owning 10,857,805 shares worth 132.9 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NCLH since 18 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NCLH analysts setting a high price target of $21.00 and a low target of $11.50, the average target price over the next 12 months is $16.96. Based on these targets, NCLH could surge 36.1% to reach the target high and fall by -25.47% to reach the target low. Reaching the average price target will result in a growth of 9.92% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NCLH will report FY 2022 earnings on 02/22/2024. Analysts have provided yearly estimates in a range of -$4.28 being high and -$4.62 being low. For NCLH, this leads to a yearly average estimate of -$4.46. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Norwegian Cruise Line Holdings Ltd. surprised analysts by $0.07 when it reported -$0.64 EPS against a consensus estimate of -$0.71. The surprise factor in the prior quarter was -$0.26. Based on analyst estimates, the high estimate for the next quarter is -$0.68 and the low estimate is -$0.94. The average estimate for the next quarter is thus -$0.85.

Summary of Insider Activity:

Insiders traded NCLH stock several times over the past three months with 9 Buys and 7 Sells. In these transactions, 176,736 shares were bought while 186,255 shares were sold. The number of buy transactions has increased to 31 while that of sell transactions has risen to 56 over the past year. The total number of shares bought during that period was 1,302,856 while 878,231 shares were sold.

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