Shares of Carnival, the world’s largest cruise company, have been making a strong recovery in 2023 after a tumultuous year in 2022. Despite experiencing a drop from their summer high, the stock has seen healthy gains. In a show of confidence, one of Carnival’s directors recently purchased $4.5 million worth of shares on the open market.
A Challenging 2022 and the Road to Recovery
Carnival stock (ticker: CCL) took a major hit in 2022, plummeting by 60% and reaching its lowest point in decades. The company had to navigate through the challenges posed by a lingering pandemic, leading to CEO Arnold Donald stepping down after serving for nine years. However, the stock has managed to rebound in 2023, currently boasting a year-to-date gain of approximately 40%, despite a double-digit percentage drop since July. While Carnival reported its first profitable quarter since the pandemic began in September, the company’s forecast left investors disappointed with its mention of expected fuel cost increases. Furthermore, the entire travel sector faced a downturn following the attack on Israel by Hamas on October 7.
Director Makes Significant Purchase
On October 10, Carnival director Randall J. Weisenburger made a substantial investment by purchasing $4.5 million worth of shares. This acquisition included 350,000 shares at an average price of $12.99 each. Weisenburger executed the transaction through a limited partnership and now holds a total of 961,238 Carnival shares. Additionally, he personally owns 278,368 shares in his own account. It is important to note that Weisenburger previously bought shares of Carnival on the open market in May 2022, spending $1.2 million for 100,000 shares at an average price of $11.76 each.
Carnival’s Outlook from an Insider Perspective
As per Carnival’s policy, Weisenburger was not available for comment on his recent investment. He has been a Carnival director since 2009 and brings a wealth of experience as the former chief financial officer of Omnicom Group (OMC) and as a managing member of private-investment firm Mile 26 Capital. His decision to purchase additional shares indicates a strong belief in the company’s future prospects.