Royalty Pharma (NASDAQ:RPRX) Sets New 12-Month High – Here’s Why

Royalty Pharma PLC (NASDAQ:RPRX) shares hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $59.44 and last traded at $59.1230, with a volume of 513102 shares changing hands. The stock had previously closed at $58.72.

Wall Street Analyst Weigh In

Several research analysts have weighed in on RPRX shares. Wall Street Zen raised shares of Royalty Pharma from a “buy” rating to a “strong-buy” rating in a research note on Saturday, May 9th. UBS Group boosted their price target on shares of Royalty Pharma from $51.00 to $57.00 and gave the company a “buy” rating in a research note on Tuesday, April 21st. Morgan Stanley upped their price objective on shares of Royalty Pharma from $61.00 to $63.00 and gave the stock an “overweight” rating in a report on Friday, April 10th. Citigroup increased their price objective on shares of Royalty Pharma from $50.00 to $66.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Finally, Weiss Ratings downgraded shares of Royalty Pharma from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, May 15th. Seven analysts have rated the stock with a Buy rating, According to MarketBeat.com, Royalty Pharma has an average rating of “Buy” and a consensus target price of $56.57.

Royalty Pharma Trading Down 0.3%

The company has a 50 day moving average of $55.60 and a 200-day moving average of $49.21. The company has a debt-to-equity ratio of 0.86, a quick ratio of 2.66 and a current ratio of 2.66. The stock has a market cap of $33.88 billion, a price-to-earnings ratio of 40.02, a price-to-earnings-growth ratio of 10.45 and a beta of 0.43.

Royalty Pharma (NASDAQ:RPRX) last announced its earnings results on Wednesday, May 6th. The biopharmaceutical company reported $1.30 EPS for the quarter, beating analysts’ consensus estimates of $1.22 by $0.08. The company had revenue of $630.58 million during the quarter, compared to analysts’ expectations of $881.69 million. Royalty Pharma had a return on equity of 29.25% and a net margin of 33.88%. On average, research analysts anticipate that Royalty Pharma PLC will post 5.18 earnings per share for the current year.

Royalty Pharma Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Friday, August 14th will be given a dividend of $0.235 per share. This represents a $0.94 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Friday, August 14th. Royalty Pharma’s dividend payout ratio is currently 63.95%.

Insider Buying and Selling at Royalty Pharma

In related news, CFO Terrance P. Coyne sold 64,399 shares of the company’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $53.98, for a total transaction of $3,476,258.02. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Marshall Urist sold 13,684 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $53.06, for a total transaction of $726,073.04. Following the completion of the transaction, the executive vice president directly owned 31,881 shares of the company’s stock, valued at $1,691,605.86. This represents a 30.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 427,800 shares of company stock worth $23,333,723. 18.84% of the stock is owned by company insiders.

Institutional Trading of Royalty Pharma

Several hedge funds have recently modified their holdings of the stock. Royal Bank of Canada grew its stake in Royalty Pharma by 367.7% during the 1st quarter. Royal Bank of Canada now owns 203,760 shares of the biopharmaceutical company’s stock worth $6,342,000 after purchasing an additional 160,191 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Royalty Pharma by 20.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 79,990 shares of the biopharmaceutical company’s stock worth $2,490,000 after buying an additional 13,489 shares in the last quarter. Focus Partners Wealth purchased a new stake in shares of Royalty Pharma during the first quarter worth approximately $264,000. Intech Investment Management LLC increased its stake in shares of Royalty Pharma by 41.0% during the first quarter. Intech Investment Management LLC now owns 47,992 shares of the biopharmaceutical company’s stock worth $1,494,000 after buying an additional 13,951 shares during the period. Finally, Invesco Ltd. raised its holdings in Royalty Pharma by 21.4% in the second quarter. Invesco Ltd. now owns 1,559,378 shares of the biopharmaceutical company’s stock valued at $56,184,000 after acquiring an additional 274,960 shares in the last quarter. 54.35% of the stock is currently owned by institutional investors and hedge funds.

Royalty Pharma Company Profile

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.