Why Norwegian Cruise Line Is Sailing Higher This Week

Shares of the fourth-largest cruise operator, Norwegian Cruise Line Holdings (NYSE: NCLH), are up 11% this week as of noon ET Friday. On Tuesday, activist investing firm Elliott Management announced it had built a 10% stake in the cruise line behemoth. Given Elliott Management's solid long-term track record led by founder Paul Singer, the market moved Norwegian's shares higher on optimism for a turnaround.After Norwegian delivered annualized total returns of 13% from its IPO in 2013 through 2020 -- before plummeting amid the pandemic -- its stock has only generated total returns of 35% over the last three years. Meanwhile, peers Carnival Corp. and Royal Caribbean are up 181% and 333% over the same time. Due to these disappointing results -- and dismayed by the board's recent selection for a new Chief Executive Officer -- Elliott is stepping in to try and shake things up for the better.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool