Royal Caribbean (RCL) Stock Surges On Fed Rate Cut, $2 Billion Buyback Plan

Royal Caribbean Cruises Ltd (NYSE:RCL) shares are rallying on Wednesday afternoon. The surge follows a bullish combination of internal capital return announcements and a supportive monetary policy shift from the Federal Reserve.

Here’s what investors need to know.

• Royal Caribbean stock is charging ahead with explosive momentum. What’s fueling RCL momentum?

What To Know: The cruise operator announced a quarterly dividend of $1 per share and authorized a new $2 billion share repurchase program. This follows the completion of a previous $1 billion buyback, bringing the total capital returned to shareholders since July 2024 to $1.9 billion.

CFO Naftali Holtz cited the company's “strong financial position and investment-grade balance sheet” as the foundation for this return of capital.

Simultaneously, the Federal Reserve cut interest rates by 25 basis points to a range of 3.5%-3.75%, the third consecutive reduction. This macroeconomic tailwind is particularly beneficial for Royal Caribbean. Lower rates reduce borrowing costs, a critical factor for capital-intensive cruise lines managing large fleets.

Furthermore, easing monetary policy typically supports consumer discretionary spending, bolstering the outlook for leisure travel demand. Investors reacted positively to the dual benefit of cheaper capital and Royal Caribbean's commitment to delivering long-term shareholder value.

Benzinga Edge Rankings: Benzinga Edge rankings highlight the company’s fundamental trajectory with a strong Growth score of 66.83, distinguishing it as a high-growth prospect despite mixed price trend signals.

RCL Price Action: Royal Caribbean Cruises shares were up 4.86% at $260.38 at the time of publication on Wednesday, according to Benzinga Pro data.

The stock is currently trading approximately 7.8% below its 50-day moving average of $282.66, suggesting that it has not yet regained its recent momentum.

Additionally, it is trading about 6% below its 200-day moving average of $277.30, which further emphasizes the stock’s struggle to maintain a bullish trend over the longer term.

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