Randall Weisenburger, a director at Carnival Corp (CCL), recently bought 350,000 shares. The buy increased his stake by 39 percent, and came to a total cost of $4.54 million.
The director was the last buyer of shares in May 2022, with a 100,000 share buy, coming to a total cost of just under $1.2 million. The company CFO sold about one-quarter of his position back in February, marking the only insider sale in the past year.
Overall, company insiders own 8 percent of shares.
The cruise line operator has had a banner year, with shares up 78 percent. Revenues have jumped 60 percent, and strong demand for cruises is leading to higher ticket prices for customers.
Although not yet profitable, the trend is looking strong for Carnival and other cruise operators. Even with the strong move in shares, they’re also down nearly 30 percent from their 52-week highs.
Action to take: Carnival shares look ready to trend higher into the end of the year. Investors may want to buy shares now, with an eye toward selling late this year or early next year. At the moment, Carnival doesn’t pay a dividend.
For traders, the January 2024 $15.00 calls, last going for about $0.60, could see high-double-digit returns or even into the triple-digits with a year-end rally.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.