Royalty Pharma (NASDAQ:RPRX) Reaches New 1-Year High – Time to Buy?

Royalty Pharma PLC (NASDAQ:RPRX)’s stock price hit a new 52-week high during trading on Thursday . The company traded as high as $43.76 and last traded at $43.68, with a volume of 5153969 shares changing hands. The stock had previously closed at $42.97.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on RPRX shares. TD Cowen reaffirmed a “buy” rating on shares of Royalty Pharma in a research report on Thursday, December 11th. Citigroup lifted their price target on Royalty Pharma from $48.00 to $50.00 and gave the stock a “buy” rating in a research note on Tuesday, January 27th. UBS Group upgraded Royalty Pharma from a “neutral” rating to a “buy” rating and set a $49.00 price objective on the stock in a report on Friday, January 30th. Wall Street Zen upgraded shares of Royalty Pharma from a “buy” rating to a “strong-buy” rating in a report on Saturday, January 17th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Royalty Pharma in a research report on Thursday, January 22nd. Five analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $47.50.

Royalty Pharma Stock Performance

The firm has a 50-day simple moving average of $39.91 and a two-hundred day simple moving average of $37.99. The company has a current ratio of 3.48, a quick ratio of 3.48 and a debt-to-equity ratio of 0.89. The company has a market capitalization of $25.77 billion, a price-to-earnings ratio of 33.83, a price-to-earnings-growth ratio of 1.69 and a beta of 0.42.

Royalty Pharma (NASDAQ:RPRX) last announced its quarterly earnings results on Wednesday, November 5th. The biopharmaceutical company reported $1.17 EPS for the quarter, beating the consensus estimate of $1.11 by $0.06. The business had revenue of $609.29 million during the quarter, compared to analysts’ expectations of $765.01 million. Royalty Pharma had a return on equity of 26.36% and a net margin of 32.51%. As a group, sell-side analysts forecast that Royalty Pharma PLC will post 4.49 earnings per share for the current fiscal year.

Royalty Pharma Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Friday, February 20th will be issued a dividend of $0.235 per share. The ex-dividend date is Friday, February 20th. This represents a $0.94 dividend on an annualized basis and a dividend yield of 2.1%. This is an increase from Royalty Pharma’s previous quarterly dividend of $0.22. Royalty Pharma’s payout ratio is 66.67%.

Insider Buying and Selling at Royalty Pharma

In related news, EVP Marshall Urist sold 20,000 shares of the company’s stock in a transaction on Friday, January 30th. The shares were sold at an average price of $41.09, for a total value of $821,800.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Terrance P. Coyne sold 20,163 shares of the firm’s stock in a transaction dated Wednesday, February 4th. The shares were sold at an average price of $43.29, for a total value of $872,856.27. Following the transaction, the chief financial officer owned 22,885 shares in the company, valued at approximately $990,691.65. This trade represents a 46.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 1,309,216 shares of company stock valued at $52,015,364. 18.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Royalty Pharma

A number of large investors have recently added to or reduced their stakes in RPRX. EverSource Wealth Advisors LLC grew its holdings in Royalty Pharma by 13.8% during the fourth quarter. EverSource Wealth Advisors LLC now owns 9,535 shares of the biopharmaceutical company’s stock valued at $368,000 after purchasing an additional 1,154 shares during the last quarter. Cumberland Partners Ltd bought a new stake in shares of Royalty Pharma during the 4th quarter worth $1,352,000. Lloyd Advisory Services LLC. acquired a new position in Royalty Pharma in the 4th quarter valued at $30,000. Meiji Yasuda Asset Management Co Ltd. raised its holdings in Royalty Pharma by 6.9% in the 4th quarter. Meiji Yasuda Asset Management Co Ltd. now owns 8,058 shares of the biopharmaceutical company’s stock worth $311,000 after acquiring an additional 523 shares during the period. Finally, Sierra Summit Advisors LLC lifted its position in Royalty Pharma by 2.3% during the 4th quarter. Sierra Summit Advisors LLC now owns 20,241 shares of the biopharmaceutical company’s stock worth $782,000 after acquiring an additional 461 shares during the last quarter. Institutional investors own 54.35% of the company’s stock.

About Royalty Pharma

Royalty Pharma plc is a specialty finance company that acquires biopharmaceutical royalty interests and provides non-dilutive financing to drug developers and rights holders. The firm purchases future royalty streams, milestone-contingent payments and other revenue rights linked to approved and late-stage pharmaceutical and biotechnology products. By paying upfront consideration for these rights, Royalty Pharma seeks to generate long-term cash flows tied to the commercial performance of a diversified portfolio of medicines.

The company’s transaction structures include outright royalty purchases, structured financings and milestone arrangements tailored to the needs of innovator companies, academic institutions and investors.