Here's How Much Investing $1,000 In The 2013 Norwegian Cruise Line IPO Would Be Worth Today

Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 ETF Trust SPY total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.

Norwegian’s Difficult Decade

One of the market laggards of the decade was cruise line giant Norwegian Cruise Line Holdings Ltd NCLH.

Norwegian first went public back in 2013 and was the third largest U.S. cruise company. After initially targeting $16 to $18 for its IPO pricing, Norwegian raised $446.5 million by selling 23.5 million IPO shares at $19 per share.

After a solid decade of returns due in part to a retiring baby boomer generation, Norwegian has experienced a near worst-case scenario to kick off the 2020s. The global COVID-19 outbreak has shut down all of Norwegian’s operations, and investors have no idea when they will be back up and running and how much initial demand there will be for vacationers to be crowded into cruise ships given understandable health concerns.

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Norwegian shares hit the ground running following its IPO, surging as high as $64.27 by late 2015. Unfortunately, that level still represents the stock’s all-time high nearly five years later.

For roughly five years from 2015 through 2019, Norwegian shares traded mostly sideways in a large trading range between around $40 and $60.

However, the recent coronavirus fears sent Norwegian shares crashing below the $40 level, below its $19 IPO price and even below $10. In March, Norwegian shares made new all-time lows of $7.03, and they are still trading below $12 as investors wait out the COVID-19 shutdown.

2020 And Beyond

After a solid start to its life on the public market, Norwegian has suddenly turned into a disaster for long-term investors.

In fact, $1,000 worth of Norwegian IPO stock in 2013 would be worth $601 today.

Looking ahead, analysts expect Norwegian will bounce back in 2020. The average price target among the 13 analysts covering the stock is $20, suggesting 75.4% upside from current levels.