By Kuldip K. Ambastha
Carnival Corporation & plc (CCL), a leisure travel company, had its stock fall by -11.2% on Thursday, July 21, 2022 and -6.0% on Friday, July 22, 2022 to close out the trading week. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of December 20-23, 2021; By Kuldip K. Ambastha” and “What Caught Our Attention in the Investment World? – Week of April 6-10, 2020; By Kuldip K. Ambastha.”) The immediate cause of the stock price drop for this company (plus its sector peers) was an equity sale of about $1 billion which was done at the low end of per share figures for prior equity sales. The 102 million in equity shares sold were priced at $9.95 per share (while prior equity sales were done at between $9.95 and $10.50 per share), with the proceeds likely to be used to retire debts due in 2023. In other news, on Monday, August 1, 2022 the current Chief Executive Officer (CEO) Arnold Donald will be stepping down, with the current Chief Operations Officer (COO) Josh Weinstein becoming the next CEO.
Keywords – Carnival Corporation & plc, Carnival Corporation, Carnival Corp., Carnival, CCL, cruise, travel, leisure, tourism, equity, debt, Chief Executive Officer, CEO, Arnold Donald, Chief Operations Officer, COO, Josh Weinstein.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in CCL.
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