Royalty Pharma (NASDAQ:RPRX) Sets New 12-Month High Following Better-Than-Expected Earnings

Shares of Royalty Pharma PLC (NASDAQ:RPRX) hit a new 52-week high on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $45.16 and last traded at $45.0650, with a volume of 1977195 shares traded. The stock had previously closed at $44.21.

The biopharmaceutical company reported $1.46 EPS for the quarter, beating the consensus estimate of $1.33 by $0.13. Royalty Pharma had a net margin of 32.38% and a return on equity of 28.21%. The firm had revenue of $621.99 million during the quarter, compared to the consensus estimate of $839.97 million.

Royalty Pharma Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Friday, February 20th will be paid a dividend of $0.235 per share. The ex-dividend date is Friday, February 20th. This is a positive change from Royalty Pharma’s previous quarterly dividend of $0.22. This represents a $0.94 dividend on an annualized basis and a yield of 2.1%. Royalty Pharma’s dividend payout ratio (DPR) is presently 66.67%.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on RPRX. Weiss Ratings upgraded Royalty Pharma from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday. Citigroup boosted their price objective on shares of Royalty Pharma from $48.00 to $50.00 and gave the company a “buy” rating in a research report on Tuesday, January 27th. Leerink Partners set a $45.00 price target on Royalty Pharma in a research note on Thursday, December 11th. TD Cowen reissued a “buy” rating on shares of Royalty Pharma in a research report on Thursday, December 11th. Finally, Wall Street Zen upgraded Royalty Pharma from a “buy” rating to a “strong-buy” rating in a research note on Saturday, January 17th. Six equities research analysts have rated the stock with a Buy rating, According to MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $48.67.

Insider Activity

In other Royalty Pharma news, EVP Marshall Urist sold 20,000 shares of the business’s stock in a transaction on Friday, January 30th. The stock was sold at an average price of $41.09, for a total transaction of $821,800.00. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Terrance P. Coyne sold 20,163 shares of the company’s stock in a transaction dated Wednesday, February 4th. The shares were sold at an average price of $43.29, for a total transaction of $872,856.27. Following the completion of the transaction, the chief financial officer directly owned 22,885 shares in the company, valued at $990,691.65. The trade was a 46.84% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 1,309,216 shares of company stock worth $52,015,364. Company insiders own 18.90% of the company’s stock.

Institutional Investors Weigh In On Royalty Pharma

Institutional investors and hedge funds have recently made changes to their positions in the business. Morgan Stanley lifted its position in Royalty Pharma by 25.2% during the fourth quarter. Morgan Stanley now owns 55,274,069 shares of the biopharmaceutical company’s stock worth $2,135,790,000 after buying an additional 11,110,115 shares during the period. Capital International Investors lifted its stake in shares of Royalty Pharma by 14.3% in the fourth quarter. Capital International Investors now owns 31,104,309 shares of the biopharmaceutical company’s stock worth $1,201,870,000 after acquiring an additional 3,891,615 shares in the last quarter. Swedbank AB boosted its stake in shares of Royalty Pharma by 0.4% during the 3rd quarter. Swedbank AB now owns 12,200,270 shares of the biopharmaceutical company’s stock valued at $430,426,000 after buying an additional 42,800 shares during the last quarter. State Street Corp raised its stake in shares of Royalty Pharma by 3.7% in the 4th quarter. State Street Corp now owns 10,649,641 shares of the biopharmaceutical company’s stock valued at $411,502,000 after purchasing an additional 376,888 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in shares of Royalty Pharma by 2.2% in the 2nd quarter. Geode Capital Management LLC now owns 8,176,504 shares of the biopharmaceutical company’s stock worth $299,494,000 after acquiring an additional 177,036 shares in the last quarter. 54.35% of the stock is currently owned by hedge funds and other institutional investors.

Royalty Pharma Stock Performance

The company has a current ratio of 2.40, a quick ratio of 3.48 and a debt-to-equity ratio of 0.88. The stock’s 50-day moving average price is $40.40 and its 200-day moving average price is $38.27. The company has a market capitalization of $26.09 billion, a P/E ratio of 33.47, a P/E/G ratio of 1.72 and a beta of 0.42.

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.