Brookstone Capital Management Buys 35,375 Shares of Royalty Pharma PLC $RPRX

Key Points

• Brookstone Capital Management initiated a Royalty Pharma position by purchasing 35,375 shares valued at approximately $2.06 million. Institutional investors collectively own 54.35% of RPRX.
• Analysts remain bullish, with eight Buy ratings, a consensus “Buy” rating, and an average price target of $61.57. Shares opened at $63.86 and recently traded near their 52-week high of $64.38.
• Royalty Pharma reported quarterly EPS of $1.32, exceeding estimates of $1.27, and declared a quarterly dividend of $0.235 per share, equivalent to an annualized $0.94 payout and a 1.5% yield.

Brookstone Capital Management bought a new position in Royalty Pharma PLC (NASDAQ:RPRX - Free Report) during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 35,375 shares of the biopharmaceutical company's stock, valued at approximately $2,064,000.

A number of other hedge funds also recently added to or reduced their stakes in RPRX. Hsbc Holdings PLC boosted its holdings in shares of Royalty Pharma by 2,562.2% during the first quarter. Hsbc Holdings PLC now owns 1,544,018 shares of the biopharmaceutical company's stock valued at $74,000,000 after acquiring an additional 1,486,020 shares during the period. Renaissance Technologies LLC acquired a new stake in shares of Royalty Pharma in the 1st quarter worth about $37,941,000. Bank of America Corp DE increased its holdings in shares of Royalty Pharma by 29.0% in the 1st quarter. Bank of America Corp DE now owns 3,495,846 shares of the biopharmaceutical company's stock worth $167,696,000 after acquiring an additional 786,921 shares during the period. Carmignac Gestion acquired a new stake in shares of Royalty Pharma in the 1st quarter worth about $30,279,000. Finally, Congress Asset Management Co. acquired a new stake in shares of Royalty Pharma in the 3rd quarter worth about $30,761,000. 54.35% of the stock is currently owned by institutional investors.

Insider Activity

In related news, EVP Christopher Hite sold 100,000 shares of the stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $58.53, for a total value of $5,853,000.00. Following the completion of the transaction, the executive vice president owned 270,401 shares in the company, valued at $15,826,570.53. This represents a 27.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Marshall Urist sold 4,126 shares of the firm's stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $57.10, for a total transaction of $235,594.60. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 208,252 shares of company stock valued at $12,324,407 in the last ninety days. Corporate insiders own 18.84% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on RPRX shares. Weiss Ratings upgraded shares of Royalty Pharma from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday, September 14th. JPMorgan Chase & Co. upped their target price on shares of Royalty Pharma from $58.00 to $62.00 and gave the stock an "overweight" rating in a research report on Friday, August 7th. TD Cowen raised their price target on shares of Royalty Pharma from $65.00 to $68.00 and gave the company a "buy" rating in a research note on Tuesday, September 8th. The Goldman Sachs Group restated a "buy" rating and issued a $66.00 price target on shares of Royalty Pharma in a research note on Thursday, August 6th. Finally, Bank of America reaffirmed a "buy" rating on shares of Royalty Pharma in a report on Wednesday, August 5th. Eight investment analysts have rated the stock with a Buy rating. According to data from MarketBeat.com, Royalty Pharma currently has a consensus rating of "Buy" and an average price target of $61.57.

Royalty Pharma Price Performance

Shares of Royalty Pharma stock opened at $63.86 on Monday. The company has a debt-to-equity ratio of 0.88, a current ratio of 2.80 and a quick ratio of 2.80. Royalty Pharma PLC has a 1-year low of $35.92 and a 1-year high of $64.38. The business's fifty day moving average price is $59.83 and its two-hundred day moving average price is $56.28. The company has a market capitalization of $36.72 billion, a P/E ratio of 44.04, a PEG ratio of 1.75 and a beta of 0.42.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The biopharmaceutical company reported $1.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.27 by $0.05. The company had revenue of $674.14 million during the quarter, compared to analysts' expectations of $758.93 million. Royalty Pharma had a return on equity of 30.01% and a net margin of 32.14%. As a group, research analysts forecast that Royalty Pharma PLC will post 5.29 EPS for the current year.

Royalty Pharma Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Friday, November 13th will be paid a dividend of $0.2350 per share. This represents a $0.94 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date is Friday, November 13th. Royalty Pharma's payout ratio is currently 64.83%.

Royalty Pharma Company Profile

Royalty Pharma plc NASDAQ: RPRX is a biopharmaceutical royalty investment company that provides funding to life sciences companies, academic institutions, and other organizations in exchange for rights to future payments tied to approved or development-stage medicines. Its business model gives innovators access to capital while allowing Royalty Pharma to participate in the long-term commercial success of pharmaceutical products.

The company acquires and manages royalty interests across a broad range of therapeutic areas, including immunology, oncology, neuroscience, rare diseases, and infectious diseases.

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