Covid-19 adversely affected the global economy – especially the travel and tourism sector as the countries became walled gardens thanks to lockdowns and travel bans across the globe. Nations are starting to recover albeit at a painfully slow pace; and are allowing their citizens to travel abroad. Organizations affected during the period are on the recovery track are showing signs of normalcy in their operations. Carnival Corporation (NYSE: CCL), a British cruise operator, announced in 2020 that it will dispose off 12% of its global fleet.
Hedge funds are adjusting their positions
A constant rise in its price over the past two weeks suggests that there’s new-found interest in the CCL stock. A recent Securities and Exchange Commission (SEC) filing shows some institutional holders have increased their stake in the travel company.
According to the filing, Czech National Bank bought 114,713 shares worth $806,000. Some hedge funds have modified their holdings too. Vanguard Group increased its stake in the company by 3.6%, the investment advisor currently owns 90,114,182 Carnival stocks worth $1.8 billion. Dimensional Fund Advisors LP raised their stake by 2%, having 4,734,230 stocks worth 95.69 million. Swiss National Bank holds 3,636,927 CCL shares worth $31.45 million after upping their stake by 0.7%.
The travel and tourism industry is an important element of a nation’s economy. In fact, some countries rely heavily on this industry including Maldives, the British Virgin Islands, Bahamas and more. The major portion of the GDP in these nations is generated solely by this industry. According to Statista, the sector’s revenue shrank from $1.8 trillion in 2019 to $1.09 trillion in 2020 globally.
The tourism sector’s contribution to global GDP fell from 10.3% in 2019 to 5.3% in 2020 due to travel restrictions and lockdowns. In 2020 alone, the industry lost 50.4% translating to $4.9 trillion. Furthermore, the sector shed 62 million jobs in 2020.
The travel and tourism market started showing signs of recovery the following year as the sector accounted for 6.1% of the global GDP, gained 21% (almost $1 trillion) and recovered 18.2 million jobs in 2021.
CCL stock price analysis
The company is seeing an influx of buyers – the fib retracement indicates that $12.92 is the next level of retracement. The share price has been in an uptrend for the past couple of weeks. The stock price has fallen by around 55% since the previous year’s high of $23.86 in February.
It appears that buyers’ pressure Is overshadowing the selling pressure in the market. If this, in fact, is the case, then investors may see the price rally up to $13 by the first week of February 2023.
Disclaimer
All the views given in the article should be perceived as informational material rather than investment advice.
Source: https://www.thecoinrepublic.com/2023/01/18/ccl-stock-price-analysis-carnival-corporation-sails-high-waters-weak-selling-pressure-in-the-last-two-weeks/