Capital International Inc. CA Acquires 58,030 Shares of Royalty Pharma PLC $RPRX

Key Points

• Capital International Inc. CA increased its Royalty Pharma stake by 8.5% in the fourth quarter, buying 58,030 shares and bringing its total holdings to 739,185 shares worth about $28.6 million.
• Institutional ownership remains heavy, with several major funds also adding to positions; the article says 54.35% of the stock is held by institutional investors.
• Analysts remain constructive on RPRX, with multiple firms raising price targets and the consensus rating at Buy; meanwhile, the company also reported better-than-expected quarterly EPS and announced a $0.235 quarterly dividend.

Capital International Inc. CA raised its holdings in shares of Royalty Pharma PLC (NASDAQ:RPRX - Free Report) by 8.5% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 739,185 shares of the biopharmaceutical company's stock after purchasing an additional 58,030 shares during the quarter. Capital International Inc. CA owned 0.13% of Royalty Pharma worth $28,562,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in the business. Capital International Investors lifted its position in shares of Royalty Pharma by 14.3% during the fourth quarter. Capital International Investors now owns 31,104,309 shares of the biopharmaceutical company's stock worth $1,201,870,000 after purchasing an additional 3,891,615 shares during the last quarter. State Street Corp lifted its position in shares of Royalty Pharma by 0.8% during the third quarter. State Street Corp now owns 10,272,753 shares of the biopharmaceutical company's stock worth $362,423,000 after purchasing an additional 77,815 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of Royalty Pharma by 1.3% during the fourth quarter. Geode Capital Management LLC now owns 7,719,843 shares of the biopharmaceutical company's stock worth $297,465,000 after purchasing an additional 102,430 shares during the last quarter. Victory Capital Management Inc. lifted its position in shares of Royalty Pharma by 3.7% during the third quarter. Victory Capital Management Inc. now owns 4,657,407 shares of the biopharmaceutical company's stock worth $164,313,000 after purchasing an additional 165,727 shares during the last quarter. Finally, Northern Trust Corp lifted its position in shares of Royalty Pharma by 1.3% during the third quarter. Northern Trust Corp now owns 4,075,239 shares of the biopharmaceutical company's stock worth $143,774,000 after purchasing an additional 53,389 shares during the last quarter. 54.35% of the stock is currently owned by institutional investors.

Insider Transactions at Royalty Pharma

In related news, CFO Terrance P. Coyne sold 64,399 shares of the company's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $53.98, for a total transaction of $3,476,258.02. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Marshall Urist sold 13,684 shares of the company's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $53.06, for a total value of $726,073.04. Following the transaction, the executive vice president directly owned 31,881 shares in the company, valued at $1,691,605.86. This represents a 30.03% 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. In the last three months, insiders sold 199,185 shares of company stock valued at $10,082,926. Corporate insiders own 18.84% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently weighed in on the company. The Goldman Sachs Group reiterated a "buy" rating on shares of Royalty Pharma in a research report on Thursday, February 12th. Citigroup upped their target price on Royalty Pharma from $50.00 to $66.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. JPMorgan Chase & Co. upped their target price on Royalty Pharma from $50.00 to $58.00 and gave the stock an "overweight" rating in a report on Thursday, May 7th. UBS Group upped their target price on Royalty Pharma from $51.00 to $57.00 and gave the stock a "buy" rating in a report on Tuesday, April 21st. Finally, Wall Street Zen upgraded Royalty Pharma from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 9th. Seven research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average target price of $53.71.

Royalty Pharma Price Performance

Shares of RPRX stock opened at $55.87 on Monday. Royalty Pharma PLC has a twelve month low of $33.37 and a twelve month high of $56.07. The stock 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 stock has a fifty day simple moving average of $50.81 and a two-hundred day simple moving average of $45.05. The company has a current ratio of 2.66, a quick ratio of 2.66 and a debt-to-equity ratio of 0.86.

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

Royalty Pharma Announces Dividend

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

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.

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