Hsbc Holdings PLC Cuts Stock Holdings in Royalty Pharma PLC $RPRX

Key Points

• Hsbc Holdings PLC cut its Royalty Pharma stake by 75.8% in the fourth quarter, selling 181,710 shares and ending with 57,998 shares worth about $2.25 million.
• Royalty Pharma reported better-than-expected earnings of $1.30 per share for the latest quarter, though revenue came in below Wall Street estimates.
• The company also paid a quarterly dividend of $0.235 per share, and analysts remain mostly positive with a consensus Buy rating and average price target of $53.71.

Hsbc Holdings PLC lowered its holdings in Royalty Pharma PLC (NASDAQ:RPRX - Free Report) by 75.8% in the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 57,998 shares of the biopharmaceutical company's stock after selling 181,710 shares during the quarter. Hsbc Holdings PLC's holdings in Royalty Pharma were worth $2,253,000 at the end of the most recent reporting period.

Several other hedge funds have also recently modified their holdings of the business. LM Advisors LLC purchased a new position in Royalty Pharma during the fourth quarter valued at approximately $26,000. Lloyd Advisory Services LLC. purchased a new stake in Royalty Pharma during the fourth quarter worth $30,000. Private Trust Co. NA boosted its position in Royalty Pharma by 52.9% during the 4th quarter. Private Trust Co. NA now owns 832 shares of the biopharmaceutical company's stock valued at $32,000 after acquiring an additional 288 shares in the last quarter. CIBC Private Wealth Group LLC boosted its position in Royalty Pharma by 66.4% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,118 shares of the biopharmaceutical company's stock valued at $43,000 after acquiring an additional 446 shares in the last quarter. Finally, Larson Financial Group LLC increased its holdings in shares of Royalty Pharma by 31.9% in the 3rd quarter. Larson Financial Group LLC now owns 1,264 shares of the biopharmaceutical company's stock valued at $45,000 after acquiring an additional 306 shares during the period. Hedge funds and other institutional investors own 54.35% of the company's stock.

Royalty Pharma Stock Up 1.5%

Royalty Pharma stock opened at $57.09 on Tuesday. 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 stock has a market capitalization of $32.87 billion, a price-to-earnings ratio of 38.84, a PEG ratio of 1.55 and a beta of 0.43. Royalty Pharma PLC has a 1-year low of $34.08 and a 1-year high of $57.17. The business has a fifty day moving average price of $52.98 and a 200-day moving average price of $46.78.

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

Royalty Pharma Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 15th were paid a dividend of $0.235 per share. The ex-dividend date was Friday, May 15th. This represents a $0.94 dividend on an annualized basis and a dividend yield of 1.6%. Royalty Pharma's payout ratio is presently 63.95%.

Analyst Upgrades and Downgrades

RPRX has been the subject of a number of analyst reports. Wall Street Zen upgraded Royalty Pharma from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 9th. Morgan Stanley boosted their target price on shares of Royalty Pharma from $61.00 to $63.00 and gave the stock an "overweight" rating in a report on Friday, April 10th. UBS Group increased their price target on shares of Royalty Pharma from $51.00 to $57.00 and gave the company a "buy" rating in a research report on Tuesday, April 21st. Weiss Ratings cut shares of Royalty Pharma from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, May 15th. Finally, JPMorgan Chase & Co. lifted 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. Seven investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $53.71.

Insider Activity at Royalty Pharma

In related news, EVP Christopher Hite sold 150,000 shares of the 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 directly owned 559,399 shares of the company's stock, valued at $30,431,305.60. This trade represents a 21.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Terrance P. Coyne sold 64,399 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $53.98, for a total transaction of $3,476,258.02. 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. In the last three months, insiders have sold 323,492 shares of company stock worth $17,160,920. 18.84% of the stock is owned by insiders.

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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