Qsemble Capital Management LP Invests $2.88 Million in Royalty Pharma PLC $RPRX

Key Points

• Qsemble Capital Management initiated a new position in Royalty Pharma, buying 74,416 shares worth about $2.88 million in the fourth quarter.
• Institutional ownership remains significant, with several funds increasing their stakes and 54.35% of Royalty Pharma shares now held by institutional investors and hedge funds.
• Royalty Pharma reported Q1 EPS of $1.30, beating estimates, and also announced a quarterly dividend of $0.235 per share, implying a 1.8% annual yield.

Qsemble Capital Management LP acquired a new position in Royalty Pharma PLC (NASDAQ:RPRX - Free Report) in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 74,416 shares of the biopharmaceutical company's stock, valued at approximately $2,875,000.

Other institutional investors and hedge funds have also modified their holdings of the company. Mirae Asset Global Investments Co. Ltd. lifted its stake in shares of Royalty Pharma by 28.5% in the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 140,131 shares of the biopharmaceutical company's stock worth $4,944,000 after buying an additional 31,045 shares during the last quarter. Regal Partners Ltd raised its stake in Royalty Pharma by 6.7% during the 3rd quarter. Regal Partners Ltd now owns 1,435,126 shares of the biopharmaceutical company's stock valued at $50,631,000 after purchasing an additional 89,930 shares during the last quarter. Nordea Investment Management AB raised its stake in Royalty Pharma by 4.7% during the 4th quarter. Nordea Investment Management AB now owns 812,663 shares of the biopharmaceutical company's stock valued at $31,604,000 after purchasing an additional 36,664 shares during the last quarter. Alps Advisors Inc. acquired a new position in Royalty Pharma during the 3rd quarter valued at $19,514,000. Finally, Sumitomo Mitsui Trust Group Inc. raised its stake in Royalty Pharma by 15.1% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,268,044 shares of the biopharmaceutical company's stock valued at $48,997,000 after purchasing an additional 166,403 shares during the last quarter. 54.35% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Royalty Pharma

In other news, CFO Terrance P. Coyne sold 34,791 shares of the company's stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $49.78, for a total value of $1,731,895.98. The transaction was disclosed in a document filed with the SEC, which is available at 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 company's stock in a transaction dated 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 sale, the executive vice president directly owned 31,881 shares in the company, valued at approximately $1,691,605.86. The trade was a 30.03% decrease in their position. 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 quarter, insiders have sold 155,893 shares of company stock valued at $7,512,360. 18.84% of the stock is owned by insiders.

Royalty Pharma Stock Down 1.0%

RPRX opened at $52.85 on Friday. The firm's 50-day simple moving average is $48.31 and its 200-day simple moving average is $43.35. 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 twelve month low of $32.15 and a twelve month high of $53.47. The firm has a market cap of $30.43 billion, a price-to-earnings ratio of 35.95, a PEG ratio of 1.45 and a beta of 0.40.

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 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 $631.00 million for the quarter, compared to analyst estimates of $881.69 million. Equities research analysts anticipate that Royalty Pharma PLC will post 5.05 EPS for the current fiscal year.

Royalty Pharma Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 15th will be issued a $0.235 dividend. The ex-dividend date of this dividend is Friday, May 15th. This represents a $0.94 annualized dividend and a dividend yield of 1.8%. Royalty Pharma's dividend payout ratio is presently 63.95%.

Wall Street Analyst Weigh In

Several research firms recently commented on RPRX. 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. Citigroup upped their target price 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. JPMorgan Chase & Co. upped their target price on shares of Royalty Pharma from $50.00 to $58.00 and gave the company an "overweight" rating in a research note on Thursday, May 7th. The Goldman Sachs Group reiterated a "buy" rating on shares of Royalty Pharma in a research note on Thursday, February 12th. Finally, TD Cowen reiterated a "buy" rating on shares of Royalty Pharma in a research note on Friday, February 27th. Seven analysts have rated the stock with a Buy rating, According to data from MarketBeat, the stock presently has an average rating of "Buy" and an average target price 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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