Norwegian Cruise Line shares have dropped more than 9% this month amid rising fuel prices and a rare viral outbreak.
Norwegian Cruise Line has experienced a spate of insider buying this month, as flaring tensions in the Middle East and a deadly viral outbreak on a cruise ship pulled shares lower.
The most recent purchase was carried out by director Jonathan Cohen, who snapped up 30,000 shares at an average price of $15.83 on Wednesday for a total of $474,900. The stock was trading narrowly above the low end of its current 52-week range of $14.53.
Director Jose Cil purchased a combined 15,000 shares at prices ranging from $14.79 to $15.25 this Monday and Tuesday for a total of $225,350. The transactions were made indirectly through a family trust.
Director Brian MacDonald bought 15,000 shares for an average price of $16.54 each on May 11. Before then, on May 7, directors Kevin Lansberry and Zillah Byng-Thorne bought a combined 40,867 shares for roughly $643,476.
The war in Iran and resulting closure of the Strait of Hormuz, a critical maritime chokepoint, has driven oil prices higher and Norwegian shares lower. The situation reached a breaking point on May 4, when the cruise operator slashed its 2026 earnings outlook, citing “headwinds related to disruptions in the Middle East.”
The pressure didn’t let up. Cruise stocks experienced a broad pullback the week of May 11 as a rare viral outbreak aboard a Dutch-flagged cruise ship dented investor confidence in an already sensitive travel sector. The World Health Organization first received reports of a cluster acute respiratory illness cases aboard the cruise ship on May 2. Today, the case count has grown to 12, though regulators have downplayed fears of a wider pandemic.
Norwegian has fared the worst out of its peer group in May. Shares have fallen 9.5% this month versus a 1.2% drop for Carnival shares and a 1.3% decline for Royal Caribbean. The benchmark S&P 500 has lost 3.9% over the same period.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com