Dorsey Asset Management LLC Buys Shares of 2,350,449 Royalty Pharma PLC $RPRX

Key Points

• Dorsey Asset Management bought a new stake of 2,350,449 shares of Royalty Pharma (RPRX) worth about $82.9 million
• Company insiders have been net sellers recently — 737,078 shares sold in the last three months (~$29.86M), including the CFO’s sale of 34,791 shares (a 43.19% reduction) and the EVP’s sale of 20,000 shares.
• Analysts hold a consensus Buy rating with an average target of ~$48.67; Royalty Pharma recently raised its quarterly dividend to $0.235 ($0.94 annual, ~2.1% yield) and reported an EPS beat but a revenue miss for the latest quarter.

Dorsey Asset Management LLC purchased a new stake in Royalty Pharma PLC (NASDAQ:RPRX - Free Report) during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 2,350,449 shares of the biopharmaceutical company's stock, valued at approximately $82,924,000. Royalty Pharma accounts for 7.5% of Dorsey Asset Management LLC's investment portfolio, making the stock its 8th biggest position. Dorsey Asset Management LLC owned about 0.41% of Royalty Pharma at the end of the most recent reporting period.

A number of other institutional investors have also made changes to their positions in the stock. CWM LLC increased its holdings in Royalty Pharma by 1.5% in the third quarter. CWM LLC now owns 18,591 shares of the biopharmaceutical company's stock valued at $656,000 after purchasing an additional 281 shares during the last quarter. GAMMA Investing LLC boosted its holdings in Royalty Pharma by 9.6% during the third quarter. GAMMA Investing LLC now owns 3,306 shares of the biopharmaceutical company's stock worth $117,000 after buying an additional 289 shares during the last quarter. Merit Financial Group LLC grew its position in shares of Royalty Pharma by 3.5% during the 3rd quarter. Merit Financial Group LLC now owns 9,149 shares of the biopharmaceutical company's stock worth $323,000 after buying an additional 306 shares during the period. Wedmont Private Capital grew its position in shares of Royalty Pharma by 5.1% during the 3rd quarter. Wedmont Private Capital now owns 6,793 shares of the biopharmaceutical company's stock worth $245,000 after buying an additional 331 shares during the period. Finally, Xponance Inc. increased its stake in shares of Royalty Pharma by 0.8% in the 3rd quarter. Xponance Inc. now owns 41,254 shares of the biopharmaceutical company's stock valued at $1,455,000 after acquiring an additional 331 shares during the last quarter. 54.35% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on RPRX shares. Wall Street Zen downgraded shares of Royalty Pharma from a "strong-buy" rating to a "buy" rating in a research report on Saturday, February 14th. Weiss Ratings raised shares of Royalty Pharma from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, February 12th. Citigroup increased their target price on shares of Royalty Pharma from $48.00 to $50.00 and gave the stock a "buy" rating in a report on Tuesday, January 27th. Leerink Partners set a $45.00 price target on shares of Royalty Pharma in a research report on Thursday, December 11th. Finally, The Goldman Sachs Group reissued a "buy" rating on shares of Royalty Pharma in a report on Thursday, February 12th. Six equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $48.67.

Insider Buying and Selling

In other news, EVP Marshall Urist sold 20,000 shares of the firm's stock in a transaction that occurred on Friday, January 30th. The shares were sold at an average price of $41.09, for a total transaction of $821,800.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Terrance P. Coyne sold 34,791 shares of Royalty Pharma stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $46.78, for a total transaction of $1,627,522.98. Following the completion of the sale, the chief financial officer owned 45,761 shares in the company, valued at $2,140,699.58. This trade represents a 43.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 737,078 shares of company stock worth $29,862,002. 18.90% of the stock is owned by insiders.

Royalty Pharma Stock Down 0.5%

Shares of RPRX stock opened at $45.65 on Friday. Royalty Pharma PLC has a 12-month low of $29.66 and a 12-month high of $47.86. The company has a quick ratio of 2.40, a current ratio of 2.40 and a debt-to-equity ratio of 0.88. The firm has a fifty day moving average of $43.25 and a 200-day moving average of $39.56. The company has a market capitalization of $26.33 billion, a price-to-earnings ratio of 33.81 and a beta of 0.40.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last announced its earnings results on Wednesday, February 11th. The biopharmaceutical company reported $1.46 earnings per share for the quarter, topping analysts' consensus estimates of $1.33 by $0.13. The firm had revenue of $621.99 million during the quarter, compared to analyst estimates of $839.97 million. Royalty Pharma had a net margin of 32.38% and a return on equity of 28.21%. As a group, equities research analysts predict that Royalty Pharma PLC will post 4.49 earnings per share for the current fiscal year.

Royalty Pharma Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Friday, February 20th were issued a dividend of $0.235 per share. The ex-dividend date was Friday, February 20th. This is a boost from Royalty Pharma's previous quarterly dividend of $0.22. This represents a $0.94 dividend on an annualized basis and a dividend yield of 2.1%. Royalty Pharma's dividend payout ratio is 69.63%.

About Royalty Pharma

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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