Dorsey Asset Management LLC Raises Stock Position in Royalty Pharma PLC $RPRX

Key Points

• Dorsey Asset Management increased its Royalty Pharma stake by 0.8% in Q1, adding 17,101 shares and bringing its total to 2,276,570 shares worth about $109.2 million.
• Other institutional investors also adjusted positions, and hedge funds and institutions now own 54.35% of Royalty Pharma’s stock.
• Analysts remain constructive on the company, with several raising price targets and the stock holding a consensus Buy rating and average target price of $56.57.

Dorsey Asset Management LLC boosted its stake in Royalty Pharma PLC (NASDAQ:RPRX - Free Report) by 0.8% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 2,276,570 shares of the biopharmaceutical company's stock after purchasing an additional 17,101 shares during the quarter. Royalty Pharma comprises about 8.7% of Dorsey Asset Management LLC's holdings, making the stock its 6th biggest position. Dorsey Asset Management LLC owned 0.40% of Royalty Pharma worth $109,207,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors have also recently made changes to their positions in RPRX. Barton Investment Management bought a new stake in shares of Royalty Pharma during the first quarter valued at approximately $905,000. Nomura Asset Management Co. Ltd. raised its position in shares of Royalty Pharma by 16.2% during 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. Fideuram Intesa Sanpaolo Private Banking S.P.A. acquired a new stake in Royalty Pharma in the 4th quarter valued at $4,923,000. Qsemble Capital Management LP acquired a new stake in Royalty Pharma in the 4th quarter valued at $2,875,000. Finally, Thrivent Financial for Lutherans grew its holdings in shares of Royalty Pharma by 10.4% during the fourth quarter. Thrivent Financial for Lutherans now owns 233,320 shares of the biopharmaceutical company's stock valued at $9,016,000 after buying an additional 22,015 shares during the last quarter. Institutional investors and hedge funds own 54.35% of the company's stock.

Insider Activity at Royalty Pharma

In related news, EVP Marshall Urist sold 13,684 shares of Royalty Pharma stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $53.06, for a total value of $726,073.04. Following the sale, the executive vice president owned 31,881 shares of the company's stock, valued at approximately $1,691,605.86. The trade was a 30.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher Hite sold 150,000 shares of the company's stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $54.40, for a total value of $8,160,000.00. Following the completion of the transaction, the executive vice president owned 559,399 shares in the company, valued at approximately $30,431,305.60. The trade was a 21.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 427,800 shares of company stock valued at $23,333,723 over the last quarter. 18.84% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. UBS Group increased their price objective on Royalty Pharma from $51.00 to $57.00 and gave the stock a "buy" rating in a research note on Tuesday, April 21st. Wall Street Zen raised shares of Royalty Pharma from a "buy" rating to a "strong-buy" rating in a research report on Saturday, May 9th. Weiss Ratings cut shares of Royalty Pharma from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, May 15th. JPMorgan Chase & Co. upped their price objective on shares of Royalty Pharma from $50.00 to $58.00 and gave the stock an "overweight" rating in a research report on Thursday, May 7th. Finally, Citigroup increased their price objective on shares of Royalty Pharma from $50.00 to $66.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Seven investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Royalty Pharma currently has a consensus rating of "Buy" and a consensus target price of $56.57.

Royalty Pharma Trading Down 0.3%

NASDAQ RPRX opened at $58.83 on Friday. The stock has a market capitalization of $33.88 billion, a price-to-earnings ratio of 40.02, a PEG ratio of 10.42 and a beta of 0.43. Royalty Pharma PLC has a one year low of $34.08 and a one year high of $59.72. 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 business's fifty day moving average is $55.60 and its 200-day moving average is $49.21.

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 for the quarter, beating the consensus estimate of $1.22 by $0.08. Royalty Pharma had a net margin of 33.88% and a return on equity of 29.25%. The company had revenue of $630.58 million during the quarter, compared to analyst estimates of $881.69 million. Equities research analysts predict that Royalty Pharma PLC will post 5.18 EPS for the current year.

Royalty Pharma Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Friday, August 14th will be paid a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date is Friday, August 14th. Royalty Pharma's payout ratio is presently 63.95%.

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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