Royal Caribbean (RCL) Shares Extend Rally On $2B Buyback

Royal Caribbean Cruises Ltd (NYSE:RCL) shares are trading higher Thursday morning, extending gains fueled by a combination of shareholder returns and a supportive shift in monetary policy. Here’s what investors need to know.

• Royal Caribbean shares are climbing with conviction. What’s behind RCL gains?

What To Know: The rally began Wednesday after the cruise operator announced a robust new capital allocation strategy. The Board of Directors authorized a new $2 billion share repurchase program, immediately following the completion of a prior $1 billion buyback.

Since July 2024, Royal Caribbean has returned $1.9 billion to investors. CFO Naftali Holtz cited the company's “strong financial position and investment-grade balance sheet” as the foundation for these moves.

Simultaneously, the stock is benefiting from significant macroeconomic tailwinds. The Federal Reserve on Wednesday cut interest rates by 25 basis points to a range of 3.5%-3.75%, marking the third consecutive reduction.

This policy shift offers a dual benefit for Royal Caribbean: it lowers borrowing costs for the capital-intensive cruise industry and typically bolsters consumer discretionary spending, supporting the outlook for leisure travel demand.

Investors are responding enthusiastically to this convergence of internal financial strength and cheaper capital, driving RCL stock upward as the market anticipates sustained long-term shareholder value.

Benzinga Edge Rankings: Benzinga Edge rankings further validate the company’s potential with a Growth score of 66.85, which significantly outperforms its current Momentum (41.20) and Value (49.25) ratings.

RCL Price Action: Royal Caribbean Gr shares were up 5% at $273.39 at the time of publication on Thursday, according to Benzinga Pro data.

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