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

Key Points

• HSBC Holdings PLC cut its stake in Royalty Pharma by 75.8% in the fourth quarter, leaving it with 57,998 shares valued at about $2.25 million.
• Royalty Pharma’s stock has drawn generally positive attention from analysts, with firms including UBS, Citigroup, and Morgan Stanley raising price targets; the consensus rating remains Buy with a target price of $53.71.
• The company reported better-than-expected earnings of $1.30 per share in its latest quarter, and it recently paid a quarterly dividend of $0.235 per share, implying an annualized yield of 1.7%.

Hsbc Holdings PLC cut its position in Royalty Pharma PLC (NASDAQ:RPRX - Free Report) by 75.8% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. 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 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Rockefeller Capital Management L.P. lifted its stake in Royalty Pharma by 1,347.4% during the 4th quarter. Rockefeller Capital Management L.P. now owns 87,814 shares of the biopharmaceutical company's stock worth $3,393,000 after acquiring an additional 81,747 shares in the last quarter. World Investment Advisors grew its position in Royalty Pharma by 21.1% in the 4th quarter. World Investment Advisors now owns 58,434 shares of the biopharmaceutical company's stock valued at $2,258,000 after acquiring an additional 10,178 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its stake in Royalty Pharma by 29.5% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,681 shares of the biopharmaceutical company's stock worth $142,000 after purchasing an additional 838 shares during the period. Compound Planning Inc. increased its stake in Royalty Pharma by 21.7% during the fourth quarter. Compound Planning Inc. now owns 10,618 shares of the biopharmaceutical company's stock worth $410,000 after purchasing an additional 1,896 shares during the period. Finally, Corient Private Wealth LLC lifted its position in shares of Royalty Pharma by 26.8% during the fourth quarter. Corient Private Wealth LLC now owns 154,922 shares of the biopharmaceutical company's stock worth $5,986,000 after purchasing an additional 32,766 shares in the last quarter. Hedge funds and other institutional investors own 54.35% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently commented on RPRX shares. UBS Group raised their price objective on shares of Royalty Pharma from $51.00 to $57.00 and gave the company a "buy" rating in a research note on Tuesday, April 21st. Citigroup increased their target price on shares of Royalty Pharma from $50.00 to $66.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Weiss Ratings cut shares of Royalty Pharma from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, May 15th. Wall Street Zen upgraded shares of Royalty Pharma from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 9th. Finally, Morgan Stanley upped their price objective on Royalty Pharma from $61.00 to $63.00 and gave the stock an "overweight" rating in a research report on Friday, April 10th. Seven analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Royalty Pharma presently has a consensus rating of "Buy" and a consensus target price of $53.71.

Royalty Pharma Stock Performance

Shares of RPRX opened at $56.43 on Friday. Royalty Pharma PLC has a 1 year low of $34.08 and a 1 year high of $58.84. The stock has a market capitalization of $32.49 billion, a PE ratio of 38.39, a PEG ratio of 1.59 and a beta of 0.43. The company has a debt-to-equity ratio of 0.86, a quick ratio of 2.66 and a current ratio of 2.66. The stock has a 50-day simple moving average of $54.35 and a 200-day simple moving average of $47.90.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last released its earnings results on Wednesday, May 6th. The biopharmaceutical company reported $1.30 earnings per share for the quarter, topping analysts' consensus estimates of $1.22 by $0.08. The firm 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%. On average, analysts predict that Royalty Pharma PLC will post 5.06 earnings per share for the current fiscal year.

Royalty Pharma Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 15th were given a $0.235 dividend. The ex-dividend date of this dividend was Friday, May 15th. This represents a $0.94 dividend on an annualized basis and a dividend yield of 1.7%. Royalty Pharma's dividend payout ratio is currently 63.95%.

Insider Activity

In related news, Director Gregory Norden sold 3,045 shares of the business's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $53.00, for a total transaction of $161,385.00. Following the completion of the transaction, the director owned 191,803 shares in the company, valued at approximately $10,165,559. The trade was a 1.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Marshall Urist sold 9,099 shares of the business's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $55.88, for a total transaction of $508,452.12. 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 90 days, insiders sold 427,800 shares of company stock valued at $23,333,723. 18.84% of the stock is currently owned by company insiders.

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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