Capital Group Investment Management PTE. LTD. Has $2.53 Million Stake in Royalty Pharma PLC $RPRX

Key Points

• Capital Group Investment Management PTE. LTD. boosted its stake in Royalty Pharma by 44.5% in the fourth quarter, ending with 65,513 shares valued at about $2.53 million.
• Royalty Pharma reported Q1 earnings of $1.30 per share, beating estimates, though revenue of $630.58 million came in below expectations. Analysts still forecast full-year EPS of 5.05.
• The company declared a quarterly dividend of $0.235 per share and continues to draw mostly positive Wall Street sentiment, with a consensus Buy rating and an average price target of $53.71.

Capital Group Investment Management PTE. LTD. increased its position in Royalty Pharma PLC (NASDAQ:RPRX - Free Report) by 44.5% in the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 65,513 shares of the biopharmaceutical company's stock after purchasing an additional 20,168 shares during the period. Capital Group Investment Management PTE. LTD.'s holdings in Royalty Pharma were worth $2,531,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in RPRX. Lloyd Advisory Services LLC. purchased a new stake in Royalty Pharma in the 4th quarter worth approximately $30,000. Smartleaf Asset Management LLC lifted its position in Royalty Pharma by 868.1% in the 3rd quarter. Smartleaf Asset Management LLC now owns 881 shares of the biopharmaceutical company's stock worth $31,000 after buying an additional 790 shares in the last quarter. Private Trust Co. NA lifted its position in Royalty Pharma by 52.9% in the 4th quarter. Private Trust Co. NA now owns 832 shares of the biopharmaceutical company's stock worth $32,000 after buying an additional 288 shares in the last quarter. Larson Financial Group LLC lifted its position in Royalty Pharma by 31.9% in the 3rd quarter. Larson Financial Group LLC now owns 1,264 shares of the biopharmaceutical company's stock worth $45,000 after buying an additional 306 shares in the last quarter. Finally, Fifth Third Bancorp lifted its position in Royalty Pharma by 16.9% in the 3rd quarter. Fifth Third Bancorp now owns 2,499 shares of the biopharmaceutical company's stock worth $88,000 after buying an additional 362 shares in the last quarter. Hedge funds and other institutional investors own 54.35% of the company's stock.

Royalty Pharma Stock Performance

NASDAQ RPRX opened at $55.87 on Friday. The company has a debt-to-equity ratio of 0.86, a current ratio of 2.66 and a quick ratio of 2.66. The firm has a market capitalization of $32.17 billion, a price-to-earnings ratio of 38.01, a P/E/G ratio of 1.54 and a beta of 0.43. The company's fifty day moving average is $50.81 and its two-hundred day moving average is $45.01. Royalty Pharma PLC has a 52-week low of $33.37 and a 52-week high of $56.07.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The biopharmaceutical company reported $1.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.22 by $0.08. The company had revenue of $630.58 million for the quarter, compared to analyst estimates of $881.69 million. Royalty Pharma had a net margin of 33.88% and a return on equity of 29.25%. Equities research analysts forecast that Royalty Pharma PLC will post 5.05 EPS for the current year.

Royalty Pharma Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Friday, May 15th will be given a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 1.7%. The ex-dividend date is Friday, May 15th. Royalty Pharma's dividend payout ratio (DPR) is currently 63.95%.

Insiders Place Their Bets

In other Royalty Pharma news, EVP Marshall Urist sold 13,684 shares of the firm's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $52.75, for a total value of $721,831.00. Following the sale, the executive vice president directly owned 18,197 shares in the company, valued at $959,891.75. This trade represents a 42.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gregory Norden sold 3,045 shares of the firm's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $53.00, for a total transaction of $161,385.00. Following the completion of the sale, the director owned 191,803 shares in the company, valued at $10,165,559. This represents a 1.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 199,185 shares of company stock worth $10,082,926 in the last ninety days. Insiders own 18.84% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on RPRX. Weiss Ratings downgraded shares of Royalty Pharma from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, May 15th. The Goldman Sachs Group reiterated a "buy" rating on shares of Royalty Pharma in a research report on Thursday, February 12th. TD Cowen restated a "buy" rating on shares of Royalty Pharma in a report on Friday, February 27th. JPMorgan Chase & Co. raised their price target on shares of Royalty Pharma from $50.00 to $58.00 and gave the company an "overweight" rating in a report on Thursday, May 7th. Finally, UBS Group raised their price target on shares of Royalty Pharma from $51.00 to $57.00 and gave the company a "buy" rating in a report on Tuesday, April 21st. Seven equities research 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 target price of $53.71.

Royalty Pharma 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.

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