Nomura Asset Management Co. Ltd. Boosts Stock Holdings in Royalty Pharma PLC $RPRX

Key Points

• Nomura Asset Management increased its stake in Royalty Pharma by 16.2% in the fourth quarter, buying 24,048 additional shares and bringing its total to 172,418 shares valued at about $6.66 million.
• Institutional interest in Royalty Pharma remains strong, with hedge funds and other institutions owning 54.35% of the stock; several firms, including BNP Paribas and Norges Bank, also raised or initiated positions.
• The company reported better-than-expected EPS of $1.30 in its latest quarterly results and announced a quarterly dividend of $0.235 per share, while analysts currently rate the stock a consensus Buy.

Nomura Asset Management Co. Ltd. grew its position in shares of Royalty Pharma PLC (NASDAQ:RPRX - Free Report) by 16.2% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 172,418 shares of the biopharmaceutical company's stock after buying an additional 24,048 shares during the quarter. Nomura Asset Management Co. Ltd.'s holdings in Royalty Pharma were worth $6,662,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also recently made changes to their positions in the company. BNP Paribas Financial Markets grew its holdings in shares of Royalty Pharma by 31.2% during the fourth quarter. BNP Paribas Financial Markets now owns 1,065,103 shares of the biopharmaceutical company's stock valued at $41,156,000 after buying an additional 253,379 shares during the last quarter. Forsta AP Fonden grew its holdings in shares of Royalty Pharma by 8.5% during the fourth quarter. Forsta AP Fonden now owns 71,400 shares of the biopharmaceutical company's stock valued at $2,759,000 after buying an additional 5,600 shares during the last quarter. Norges Bank purchased a new stake in shares of Royalty Pharma during the fourth quarter valued at approximately $131,923,000. Hillsdale Investment Management Inc. grew its holdings in shares of Royalty Pharma by 5,266.7% during the fourth quarter. Hillsdale Investment Management Inc. now owns 24,150 shares of the biopharmaceutical company's stock valued at $933,000 after buying an additional 23,700 shares during the last quarter. Finally, Fideuram Asset Management Ireland dac purchased a new stake in shares of Royalty Pharma during the fourth quarter valued at approximately $413,000. Hedge funds and other institutional investors own 54.35% of the company's stock.

Royalty Pharma Stock Up 1.8%

Royalty Pharma stock opened at $54.97 on Thursday. The stock has a market cap of $31.65 billion, a PE ratio of 37.39, a price-to-earnings-growth ratio of 1.48 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. Royalty Pharma PLC has a one year low of $33.25 and a one year high of $56.07. The stock has a fifty day moving average of $50.44 and a 200 day moving average of $44.82.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last released its quarterly 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 net margin of 33.88% and a return on equity of 29.25%. The business had revenue of $630.58 million for the quarter, compared to the consensus estimate of $881.69 million. As a group, sell-side analysts predict that Royalty Pharma PLC will post 5.05 EPS for the current year.

Royalty Pharma Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Friday, May 15th will be given a $0.235 dividend. The ex-dividend date is Friday, May 15th. This represents a $0.94 annualized dividend and a yield of 1.7%. Royalty Pharma's dividend payout ratio (DPR) is presently 63.95%.

Insiders Place Their Bets

In other Royalty Pharma news, CFO Terrance P. Coyne sold 64,399 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $53.98, for a total value of $3,476,258.02. The transaction was disclosed in a filing 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 Marshall Urist sold 13,684 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $53.06, for a total transaction of $726,073.04. Following the completion of the transaction, the executive vice president owned 31,881 shares in the company, valued at $1,691,605.86. The trade was a 30.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 199,185 shares of company stock worth $10,082,926. Company insiders own 18.84% of the company's stock.

Analyst Upgrades and Downgrades

RPRX has been the topic of several research reports. Citigroup raised 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 downgraded shares of Royalty Pharma from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, May 15th. Morgan Stanley lifted their target price on shares of Royalty Pharma from $61.00 to $63.00 and gave the stock an "overweight" rating in a research report on Friday, April 10th. UBS Group lifted their price objective on Royalty Pharma from $51.00 to $57.00 and gave the stock a "buy" rating in a report on Tuesday, April 21st. Finally, The Goldman Sachs Group reiterated a "buy" rating on shares of Royalty Pharma in a research report on Thursday, February 12th. Seven analysts have rated the stock with a Buy rating, According to data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $53.71.

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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