Rakuten Investment Management Inc. Purchases 26,660 Shares of Royalty Pharma PLC $RPRX

Key Points

• Rakuten Investment Management opened a new Royalty Pharma position, acquiring 26,660 shares worth approximately $1.55 million in the third quarter. Institutional investors and hedge funds own 54.35% of the stock.
• Royalty Pharma reported quarterly earnings of $1.32 per share, beating analyst estimates of $1.27, but revenue of $674.14 million came in below expectations of $758.93 million.
• The company declared a quarterly dividend of $0.235 per share, or $0.94 annualized, representing a 1.4% yield. Analysts’ consensus rating was “Buy,” with an average price target of $63.29.

Rakuten Investment Management Inc. acquired a new stake in shares of Royalty Pharma PLC (NASDAQ:RPRX - Free Report) during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 26,660 shares of the biopharmaceutical company's stock, valued at approximately $1,552,000.

Several other hedge funds also recently added to or reduced their stakes in RPRX. Bank of America Corp DE increased its position in shares of Royalty Pharma by 29.0% in the 1st quarter. Bank of America Corp DE now owns 3,495,846 shares of the biopharmaceutical company's stock worth $167,696,000 after purchasing an additional 786,921 shares during the last quarter. Amundi raised its stake in shares of Royalty Pharma by 15.3% in the 1st quarter. Amundi now owns 3,088,773 shares of the biopharmaceutical company's stock valued at $148,168,000 after purchasing an additional 409,394 shares in the last quarter. Dorsey Asset Management LLC lifted its position in shares of Royalty Pharma by 0.8% during the first quarter. Dorsey Asset Management LLC now owns 2,276,570 shares of the biopharmaceutical company's stock worth $109,207,000 after purchasing an additional 17,101 shares during the last quarter. Hsbc Holdings PLC lifted its position in shares of Royalty Pharma by 2,562.2% during the first quarter. Hsbc Holdings PLC now owns 1,544,018 shares of the biopharmaceutical company's stock worth $74,000,000 after purchasing an additional 1,486,020 shares during the last quarter. Finally, Robeco Institutional Asset Management B.V. grew its stake in Royalty Pharma by 28.2% in the third quarter. Robeco Institutional Asset Management B.V. now owns 1,168,427 shares of the biopharmaceutical company's stock worth $68,189,000 after purchasing an additional 256,841 shares in the last quarter. 54.35% of the stock is owned by institutional investors and hedge funds.

Royalty Pharma Stock Down 0.4%

RPRX stock opened at $67.30 on Friday. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.29 and a quick ratio of 2.80. Royalty Pharma PLC has a 1-year low of $37.31 and a 1-year high of $69.77. The firm has a fifty day moving average price of $60.82 and a two-hundred day moving average price of $53.81. The firm has a market cap of $38.70 billion, a price-to-earnings ratio of 56.08, a PEG ratio of 1.34 and a beta of 0.37.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last issued its earnings results on Wednesday, August 5th. The biopharmaceutical company reported $1.32 earnings per share for the quarter, topping analysts' consensus estimates of $1.27 by $0.05. Royalty Pharma had a net margin of 25.68% and a return on equity of 30.04%. The company had revenue of $674.14 million for the quarter, compared to analysts' expectations of $758.93 million. Research analysts predict that Royalty Pharma PLC will post 5.36 EPS for the current year.

Royalty Pharma Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Friday, November 13th will be issued a $0.2350 dividend. The ex-dividend date of this dividend is Friday, November 13th. This represents a $0.94 annualized dividend and a dividend yield of 1.4%. Royalty Pharma's payout ratio is 78.33%.

Analyst Upgrades and Downgrades

RPRX has been the subject of several research analyst reports. Citigroup boosted their price objective on Royalty Pharma from $70.00 to $78.00 and gave the company a "buy" rating in a report on Thursday. Morgan Stanley upped their price objective on Royalty Pharma from $65.00 to $67.00 and gave the company an "overweight" rating in a research note on Wednesday, October 7th. Weiss Ratings raised Royalty Pharma from a "buy (b-)" rating to a "buy (b)" rating in a report on Monday, September 14th. Wall Street Zen downgraded Royalty Pharma from a "strong-buy" rating to a "buy" rating in a report on Saturday, September 26th. Finally, Bank of America reiterated a "buy" rating on shares of Royalty Pharma in a research report on Wednesday, August 5th. Eight 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 target price of $63.29.

Insider Transactions at Royalty Pharma

In related news, EVP Marshall Urist sold 4,126 shares of the stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $57.10, for a total transaction of $235,594.60. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher Hite sold 100,000 shares of the firm's stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $58.53, for a total transaction of $5,853,000.00. Following the completion of the transaction, the executive vice president directly owned 270,401 shares in the company, valued at $15,826,570.53. This represents a 27.00% decrease in their position. 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 ninety days, insiders have sold 208,252 shares of company stock valued at $12,324,407. Insiders own 18.84% of the company's stock.

About Royalty Pharma

Royalty Pharma plc is a biopharmaceutical royalty company that provides funding to companies and inventors in exchange for royalty interests in medicines. It acquires existing royalties and helps finance drug development and commercialization through royalty-based transactions and other forms of funding.

The company's portfolio includes royalty interests in medicines across a range of therapeutic areas, spanning both approved treatments and products in development. Royalty Pharma generally earns revenue when these medicines are sold; it does not operate as a conventional drug manufacturer or commercialize medicines itself.

Founded in 1996 by Pablo Legorreta, the company became publicly listed in 2020.

Want to see what other hedge funds are holding RPRX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Royalty Pharma PLC (NASDAQ:RPRX - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.