Norwegian Cruise Line (NYSE:NCLH) Shares Gap Up – Should You Buy?

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) shares gapped up before the market opened on Tuesday . The stock had previously closed at $21.49, but opened at $23.12. Norwegian Cruise Line shares last traded at $22.9540, with a volume of 15,718,123 shares changing hands.

More Norwegian Cruise Line News

Here are the key news stories impacting Norwegian Cruise Line this week:

• Positive Sentiment: Elliott disclosed it built just over a 10% stake and is pushing for board changes — a classic activist catalyst that can force strategic reviews, cost cuts or asset sales that could unlock shareholder value. Elliott builds over 10% stake in Norwegian Cruise, seeks board change
• Positive Sentiment: Former Royal Caribbean CEO Adam Goldstein has joined the effort, lending industry credibility and operational experience to Elliott’s push — this raises the probability of a substantive operational/strategic plan if activists win influence. Former Royal CEO Adam Goldstein working with Elliott as it pushes for change at NCLH
• Positive Sentiment: Analysts and commentators flagged the activist stake as a major catalyst that could re-rate the stock if management negotiates or implements credible changes. Norwegian Cruise Line: Activist Stake A Major Catalyst
• Neutral Sentiment: The market already reacted sharply when the stake was revealed (shares jumped double digits on the initial news), so some of today’s activity may be profit-taking and re-pricing after that rapid move. Norwegian Cruise (NCLH) Soars 12% as Activist Firm Buys Stake
• Neutral Sentiment: Some coverage noted short-term outperformance versus the market around the news, but that doesn’t guarantee a sustained rally absent clear governance or financial remedies. Why Norwegian Cruise Line (NCLH) Outpaced the Stock Market Today
• Negative Sentiment: Research warns Elliott faces meaningful obstacles — NCLH’s complex fleet financing, high leverage and potential pushback from management or other shareholders could slow or dilute activist plans. That uncertainty can weigh on the stock. Elliott Management’s ambitious goal for Norwegian Cruise Line faces major hurdles—Citi Research
• Negative Sentiment: Broader coverage highlights NCLH’s balance-sheet and operational constraints (high debt-to-equity and low liquidity ratios) that limit strategic flexibility — investors may be pricing in the risk that value creation is harder and slower than activists hope. Can an activist investor rescue marooned Norwegian Cruise Lines?

Analyst Ratings Changes

NCLH has been the subject of a number of research analyst reports. Citigroup raised their price target on shares of Norwegian Cruise Line from $26.00 to $29.00 and gave the stock a “buy” rating in a report on Wednesday, January 14th. TD Cowen restated a “buy” rating on shares of Norwegian Cruise Line in a research note on Tuesday, January 13th. Barclays lowered Norwegian Cruise Line from an “overweight” rating to an “equal weight” rating and set a $23.00 target price on the stock. in a research report on Wednesday, February 11th. Weiss Ratings reissued a “hold (c)” rating on shares of Norwegian Cruise Line in a research report on Thursday, January 22nd. Finally, Jefferies Financial Group downgraded shares of Norwegian Cruise Line from a “buy” rating to a “hold” rating and dropped their price objective for the company from $26.00 to $20.00 in a report on Monday, December 15th. Two investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $26.32.

Norwegian Cruise Line Trading Down 2.6%

The firm has a market cap of $10.79 billion, a PE ratio of 17.43, a price-to-earnings-growth ratio of 0.60 and a beta of 2.06. The company has a 50-day simple moving average of $22.50 and a 200 day simple moving average of $22.61. The company has a current ratio of 0.19, a quick ratio of 0.17 and a debt-to-equity ratio of 6.22.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Capital International Investors grew its position in shares of Norwegian Cruise Line by 7.1% during the 4th quarter. Capital International Investors now owns 56,177,669 shares of the company’s stock valued at $1,253,886,000 after acquiring an additional 3,728,929 shares during the period. Vanguard Group Inc. boosted its position in Norwegian Cruise Line by 0.3% during the fourth quarter. Vanguard Group Inc. now owns 52,846,173 shares of the company’s stock worth $1,179,527,000 after purchasing an additional 157,974 shares in the last quarter. State Street Corp grew its holdings in Norwegian Cruise Line by 0.4% in the fourth quarter. State Street Corp now owns 16,304,827 shares of the company’s stock valued at $363,924,000 after purchasing an additional 66,329 shares during the period. Ariel Investments LLC increased its position in shares of Norwegian Cruise Line by 36.2% in the second quarter. Ariel Investments LLC now owns 12,369,377 shares of the company’s stock valued at $250,851,000 after buying an additional 3,288,207 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Norwegian Cruise Line by 2.2% in the fourth quarter. Geode Capital Management LLC now owns 12,205,008 shares of the company’s stock valued at $271,951,000 after buying an additional 262,086 shares in the last quarter. Institutional investors and hedge funds own 69.58% of the company’s stock.

Norwegian Cruise Line Company Profile

Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) is a global cruise operator offering a portfolio of premium brands that includes Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. The company provides sea voyages and related onboard services such as dining, entertainment, shore excursions and destination experiences. Its fleet of modern vessels sails to more than 400 destinations across all seven continents, serving leisure travelers with itineraries ranging from short Caribbean getaways to extended world voyages.

Founded in 1966 by Knut Kloster and Ted Arison, the company pioneered the concept of “Freestyle Cruising,” which allows passengers greater flexibility in dining schedules, entertainment choices and onboard activities.