Royal Caribbean Group (NYSE: RCL) shares are trading lower by 7.26% to $36.13 Thursday morning. Shares of cruise line stocks at large are trading lower in sympathy with Carnival (NYSE:CCL) after the company announced a $1 billion common stock offering.
What Happened?
Carnival announced a common stock offering of approximately 102 million shares at $9.95 per share during Wednesday's after-hours session.
Carnival expects to use the net proceeds from the offering for general corporate purposes, which could include addressing 2023 debt maturities.
Why it Matters
Shares of travel and cruise companies have seen marked weakness in 2022 and are trading sharply lower for the year amid broader economic uncertainty, which has weighed on discretionary sectors. An economic slowdown could lead to decreased consumer spending on travel.
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According to data from Benzinga Pro, Royal Caribbean Group has a 52-week high of $98.27 and a 52-week low of $31.09.
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