Carnival Corporation set to snap six days of gains as shares trade in red

Shares of Carnival Corporation (NYSE:CCL) were on track to snap six days of gains, as the stock fell more than 2.5% to $29.18 in Monday afternoon trade.

The cruise operator gained more than 14% in the last six trading days. CCL is up 23% over the past one month.

The stock has gained more than 19% so far this year, compared to an over 6% gain in the broader S&P 500 Index. The stock closed 1.05% higher, at $29.96 last Thursday.

Carnival Corporation said earlier in the day that it has commenced a private offering of new senior unsecured notes in an aggregate principal amount of $2B, expected to mature in 2032.

The company intends to use the proceeds to fully repay the borrowings under its first-priority senior secured term loan facility, maturing in 2028.

Carnival Corporation reported a strong fiscal second quarter results last month, fueled by record high bookings despite historically high prices.

The impressive results led the company to hike its full-year guidance once again. Net income is expected to increase by 40% versus earlier guidance for a 30% gain, and adjusted EBITDA of $6.9B versus March’s guidance of $6.6B to $6.7B.

Seeking Alpha’s Quant rating has given CCL stock a STRONG BUY rating, while SA authors and sell-side analysts see the stock as a BUY.