Investor inattention and Tuesday earnings announcements: Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)

Moody’s Investors Service (“Moody’s”) has completed a periodic review of the ratings of NCL Corporation Ltd. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody’s reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.

This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

NCL’s B2 corporate family rating is supported by its market position as the third largest ocean cruise operator worldwide, as well as its well-known brand names — Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises, as well as the strong performance of its new ships in terms of pricing and bookings relative to its other ships which enables the company to compete against larger rivals across all its price points. Moody’s view that over the long run, the value proposition of a cruise vacation relative to land-based destinations as well as a group of loyal cruise customers supports a base level of demand once health safety concerns have been effectively addressed. In the short run, NCL’s credit profile will be dominated by the length of time that cruise operations continue to be highly disrupted and the resulting impacts on the company’s cash consumption and its liquidity profile. The normal ongoing credit risks include its high leverage, the highly seasonal and capital intensive nature of cruise companies and the cruise industry’s exposure to economic and industry cycles, weather incidents and geopolitical events.

 On 09-03-2k20 (Thursday) Shareholders tracking shares of Norwegian Cruise Line Holdings Ltd. (NCLH) belongs to Consumer Cyclical sector and Travel Services industry. NCLH flaunted 8.54% to reach at $18.44 during previous trading session. NCLH Inc. has a total market value of 4.41B at the time of writing – representing $275.62M outstanding shares. Turning to other widely-considered trading data, this company’s half yearly performance is observed at -40.57%.

Volume Evaluation

The USA listed company saw a recent price trade of $18.44 and 23,639,680 shares have traded hands in the session. There are 49.92M shares which are traded as an average over the last three months period.

Many investors forget that one of the defining characteristics of the stock market is that it’s a market. Buyers and sellers help determine the price of each stock, and the more buyers and sellers a particular stock has interested in it, the more liquid the market will be. Liquidity can have a profound impact on just how violently stock prices can move in either direction, and the reasons have to do with the nature of the market in a stock’s shares.

Trading volume, or volume, is the number of shares or contracts that indicates the overall activity of a security or market for a given period. Trading volume is an important technical indicator an investor uses to confirm a trend or trend reversal. Volume gives an investor an idea of the price action of a security and whether they should buy or sell the security.

Performance Levels

Looking performance record on shares of Norwegian Cruise Line Holdings Ltd. (NCLH) we observed that the stock has seen a move -66.71% over the last 52-week trading period. The stock generated performance of -13.27% tracking last 3 months. Investors will be anxiously watching to see if things will turn around and the stock will start gaining or losing momentum over the next few months. If we look back year-to-date, the stock has performed -70.91%. Shares are at 8.08% over the previous week and 25.29% over the past month.

Analyst Views:

Fluctuating the focus to what the Wall Street analysts are projecting, we can see that the current consensus target price on shares is $16.23. Analysts often put in a lot of work to study stocks that they cover. Wall Street analysts have a consensus recommendation of 2.50on this stock. This number falls on a one to five scale where a 1 would be considered a strong buy and 5 means a strong sell, 2 shows Buy, 3 Hold, 4 reveals Sell recommendation.

Volatility Insights

Watching some historical volatility numbers on shares of Norwegian Cruise Line Holdings Ltd. (NCLH) we can see that the 30 days volatility is presently 6.43%. The 7 days volatility is 5.31%. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

The company has a beta of 2.73. 1.00 indicates that its price is correlated with the market. Less than 1.00 shows less volatility than the market. Beta greater than 1.00 indicates that the security’s price is theoretically more volatile than the market.

The Average True Range (ATR) value reported at 0.99. The average true range (ATR) is a technical analysis indicator that measures volatility by decomposing the entire range of an asset price for that period. A stock experiencing a high level of volatility has a higher ATR, and a low volatility stock has a lower ATR. The ATR may be used by market technicians to enter and exit trades, and it is a useful tool to add to a trading system. It was created to allow traders to more accurately measure the daily volatility of an asset by using simple calculations. The indicator does not indicate the price direction; rather it is used primarily to measure volatility caused by gaps and limit up or down moves. The ATR is fairly simple to calculate and only needs historical price data.

Technical Considerations

Norwegian Cruise Line Holdings Ltd. (NCLH) stock positioned -36.06% distance from the 200-day MA and stock price situated 19.35% away from the 50-day MA while located 16.23% off of the 20-day MA.

RSI value sited with reading of 54.55. Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator. The RSI compares the magnitude of a stock’s recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It takes a single parameter, the number of time periods to use in the calculation. In his book, Wilder recommends using 14 periods.

Observing the Technical Indicators:

Norwegian Cruise Line Holdings Ltd. institutional ownership is held at 53.30% while insider ownership was 0.70%. As of now, NCLH has a P/S, P/E and P/B values of 0.95, N/A and 0.94 respectively. Its P/Cash is valued at 1.95. The Company’s net profit margin for the 12 months at 0. Comparatively, the gazes have a Gross margin 31.90%.

Profitability ratios:

Looking into the profitability ratios of NCLH stock, an investor will find its ROE, ROA, ROI standing at -37.70%, -12.20% and 8.90%, respectively.

Earnings per Share Details of Norwegian Cruise Line Holdings Ltd.:

The EPS of NCLH is strolling at -9.14, measuring its EPS growth this year at 1.00%. As a result, the company has an EPS growth of N/A for the approaching year.

Given the importance of identifying companies that will ensure earnings per share at a tall rate, we later obsession to umpire how to identify which companies will achieve high amassing rates. One obvious showing off to identify high earnings per portion count together companies are to locate companies that have demonstrated such build up beyond the p.s. 5 to 10 years.

The payout ratio shows the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company’s earnings. The payout ratio can also be expressed as dividends paid out as a proportion of cash flow. The payout ratio is also known as the dividend payout ratio. The Company’s payout ratio was N/A and Price to free cash flow remained $N/A.

Brad Larson

About Brad Larson

This is Brad Larson and I like to introduce myself as an adviser, in the “Earnings Review”. I worked independently as a self motivator and with the financial institute as financial adviser to invest in the Earnings sector for over 9 years in the developing countries by introducing new phases and ways to improve in the Earnings sector.I specialize in market indices, currency pairs, and commodities, rarely trading individual stocks. I accomplished my Post-Graduate degree in Business Administration with a specialization in Finance from International School of Business and Media (ISB&M). I like to travel all over the globe to get new experience and provide by best services to the companies. As an adviser I like to work with new people to share and explore new ideas keeping in view minimizing the operating cost and giving the best final product through new technology and minimizing the time of development.

View all posts by Brad Larson →