Inceptionr LLC Increases Stock Holdings in Royalty Pharma PLC $RPRX

Key Points

• Inceptionr LLC increased its stake in Royalty Pharma by 287.2% in the first quarter, buying 33,050 additional shares and bringing its total to 44,557 shares worth about $2.14 million.
• Royalty Pharma reported quarterly EPS of $1.30, topping analyst estimates of $1.22, though revenue came in below expectations at $630.58 million versus $881.69 million forecast.
• The company announced a quarterly dividend of $0.235 per share, implying a 1.6% annual yield, while analysts remain broadly positive with a consensus Buy rating and average target price of $56.57.

Inceptionr LLC boosted its holdings in Royalty Pharma PLC (NASDAQ:RPRX - Free Report) by 287.2% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 44,557 shares of the biopharmaceutical company's stock after purchasing an additional 33,050 shares during the quarter. Royalty Pharma makes up 0.5% of Inceptionr LLC's portfolio, making the stock its 11th biggest holding. Inceptionr LLC's holdings in Royalty Pharma were worth $2,137,000 as of its most recent SEC filing.

A number of other hedge funds have also recently added to or reduced their stakes in RPRX. Morgan Stanley increased its stake in shares of Royalty Pharma by 25.2% during the 4th quarter. Morgan Stanley now owns 55,274,069 shares of the biopharmaceutical company's stock valued at $2,135,790,000 after acquiring an additional 11,110,115 shares during the last quarter. Capital International Investors grew its holdings in Royalty Pharma by 14.3% in the fourth quarter. Capital International Investors now owns 31,104,309 shares of the biopharmaceutical company's stock valued at $1,201,870,000 after purchasing an additional 3,891,615 shares during the period. State Street Corp increased its position in Royalty Pharma by 3.7% during the fourth quarter. State Street Corp now owns 10,649,641 shares of the biopharmaceutical company's stock worth $411,502,000 after purchasing an additional 376,888 shares during the last quarter. Geode Capital Management LLC raised its stake in 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 period. Finally, Victory Capital Management Inc. grew its stake in shares of Royalty Pharma by 9.7% during the 4th quarter. Victory Capital Management Inc. now owns 5,106,905 shares of the biopharmaceutical company's stock valued at $197,331,000 after buying an additional 449,498 shares during the period. 54.35% of the stock is owned by institutional investors and hedge funds.

Royalty Pharma Trading Up 0.5%

Shares of RPRX opened at $59.02 on Friday. Royalty Pharma PLC has a 12 month low of $34.08 and a 12 month high of $59.44. The stock's 50-day moving average is $55.48 and its two-hundred day moving average is $49.14. 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 cap of $33.99 billion, a PE ratio of 40.15, a P/E/G ratio of 10.40 and a beta of 0.43.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last posted its earnings results on Wednesday, May 6th. The biopharmaceutical company reported $1.30 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.22 by $0.08. The business 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%. Equities analysts forecast that Royalty Pharma PLC will post 5.18 earnings per share for the current fiscal year.

Royalty Pharma Dividend Announcement

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

Insider Activity

In related news, Director Gregory Norden sold 3,045 shares of Royalty Pharma 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 sale, the director owned 191,803 shares of the company's stock, valued at $10,165,559. The trade was a 1.56% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Terrance P. Coyne sold 64,399 shares of the company's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $53.98, for a total transaction of $3,476,258.02. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 427,800 shares of company stock valued at $23,333,723 in the last 90 days. Company insiders own 18.84% of the company's stock.

Wall Street Analysts Forecast Growth

RPRX has been the topic of a number of research analyst reports. JPMorgan Chase & Co. lifted their target price on Royalty Pharma from $50.00 to $58.00 and gave the company an "overweight" rating in a report on Thursday, May 7th. TD Cowen lifted their price objective on Royalty Pharma from $50.00 to $65.00 and gave the company a "buy" rating in a research note on Monday, July 13th. Weiss Ratings cut Royalty Pharma from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, May 15th. Morgan Stanley raised their price target on shares of Royalty Pharma from $61.00 to $63.00 and gave the company an "overweight" rating in a report on Friday, April 10th. Finally, 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. Seven analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $56.57.

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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