Wall Street Zen Downgrades Royalty Pharma (NASDAQ:RPRX) to Buy

Key Points

• Wall Street Zen downgraded Royalty Pharma from “strong buy” to “buy,” while the broader analyst consensus remains “buy” with an average price target of $60.86.
• Royalty Pharma shares opened at $60.85, near their 12-month high of $62.46, after the company reported quarterly EPS of $1.32, exceeding estimates of $1.27, though revenue of $674.14 million fell short of expectations.
• Insiders sold 398,197 shares worth approximately $22.5 million in the last quarter, while institutional investors own 54.35% of the company.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Sunday.

RPRX has been the topic of several other reports. The Goldman Sachs Group reissued a "buy" rating and issued a $66.00 target price on shares of Royalty Pharma in a research report on Thursday, August 6th. Weiss Ratings restated a "buy (b-)" rating on shares of Royalty Pharma in a research report on Wednesday, August 12th. TD Cowen raised their price objective on shares of Royalty Pharma from $50.00 to $65.00 and gave the stock a "buy" rating in a research note on Monday, July 13th. Bank of America reiterated a "buy" rating on shares of Royalty Pharma in a research report on Wednesday, August 5th. Finally, Morgan Stanley reissued an "overweight" rating and set a $65.00 target price on shares of Royalty Pharma in a research note on Thursday, August 6th. Eight equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $60.86.

Royalty Pharma Trading Down 1.7%

Shares of NASDAQ RPRX opened at $60.85 on Friday. The company has a quick ratio of 2.80, a current ratio of 2.80 and a debt-to-equity ratio of 0.88. Royalty Pharma has a 12 month low of $34.08 and a 12 month high of $62.46. The company has a market cap of $34.99 billion, a price-to-earnings ratio of 41.97, a P/E/G ratio of 1.42 and a beta of 0.43. The business has a fifty day simple moving average of $58.16 and a 200-day simple moving average of $52.44.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The biopharmaceutical company reported $1.32 earnings per share for the quarter, topping analysts' consensus estimates of $1.27 by $0.05. Royalty Pharma had a return on equity of 30.01% and a net margin of 32.14%.The firm had revenue of $674.14 million for the quarter, compared to analysts' expectations of $758.93 million. Sell-side analysts predict that Royalty Pharma will post 5.3 EPS for the current year.

Insider Transactions at Royalty Pharma

In related news, EVP Marshall Urist sold 9,099 shares of the firm's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $55.88, for a total transaction of $508,452.12. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher Hite sold 150,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $54.40, for a total transaction of $8,160,000.00. Following the sale, the executive vice president owned 559,399 shares of the company's stock, valued at approximately $30,431,305.60. This represents a 21.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 398,197 shares of company stock worth $22,513,280 in the last quarter. 18.84% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Royalty Pharma

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RPRX. Barton Investment Management bought a new stake in Royalty Pharma during the first quarter valued at about $905,000. Nomura Asset Management Co. Ltd. increased its stake in shares of Royalty Pharma by 16.2% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 172,418 shares of the biopharmaceutical company's stock worth $6,662,000 after purchasing an additional 24,048 shares during the period. Qsemble Capital Management LP bought a new position in shares of Royalty Pharma in the fourth quarter worth about $2,875,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. acquired a new position in shares of Royalty Pharma during the 4th quarter worth about $4,923,000. Finally, Thrivent Financial for Lutherans lifted its position in shares of Royalty Pharma by 10.4% during the 4th quarter. Thrivent Financial for Lutherans now owns 233,320 shares of the biopharmaceutical company's stock worth $9,016,000 after purchasing an additional 22,015 shares during the last quarter. Hedge funds and other institutional investors own 54.35% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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