Royalty Pharma PLC $RPRX Position Reduced by Swedbank AB

Key Points

• Swedbank AB trimmed its stake in Royalty Pharma by 2.1%, selling 258,127 shares and now holds 11,942,143 shares (~2.07%) valued at about $461.4 million.
• Quarterly results: Royalty Pharma reported EPS of $1.46 (vs. $1.33 est.) but revenue of $622.0 million missed expectations (~$840 million); the company also declared a quarterly dividend of $0.235 ($0.94 annual, 1.9% yield), ex-dividend May 15 and payable June 10.
• Insider and analyst activity: CFO Terrance P. Coyne sold 34,791 shares under a Rule 10b5-1 plan and insiders have sold 139,164 shares in the past 90 days, while analysts hold a consensus "Buy" rating with an average target of $50.33 (Morgan Stanley's target raised to $63).

Swedbank AB trimmed its stake in shares of Royalty Pharma PLC (NASDAQ:RPRX - Free Report) by 2.1% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 11,942,143 shares of the biopharmaceutical company's stock after selling 258,127 shares during the quarter. Swedbank AB owned approximately 2.07% of Royalty Pharma worth $461,444,000 at the end of the most recent quarter.

A number of other large investors have also recently added to or reduced their stakes in the stock. Strs Ohio boosted its stake in Royalty Pharma by 2.8% during the 4th quarter. Strs Ohio now owns 9,318 shares of the biopharmaceutical company's stock valued at $360,000 after acquiring an additional 252 shares during the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd boosted its stake in Royalty Pharma by 0.6% during the 4th quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 43,287 shares of the biopharmaceutical company's stock valued at $1,673,000 after acquiring an additional 255 shares during the last quarter. CWM LLC boosted its stake in Royalty Pharma by 1.5% during the 3rd quarter. CWM LLC now owns 18,591 shares of the biopharmaceutical company's stock valued at $656,000 after acquiring an additional 281 shares during the last quarter. Private Trust Co. NA boosted its stake in Royalty Pharma by 52.9% during the 4th quarter. Private Trust Co. NA now owns 832 shares of the biopharmaceutical company's stock valued at $32,000 after acquiring an additional 288 shares during the last quarter. Finally, Hudson Bay Capital Management LP boosted its stake in Royalty Pharma by 1.0% during the 3rd quarter. Hudson Bay Capital Management LP now owns 29,384 shares of the biopharmaceutical company's stock valued at $1,037,000 after acquiring an additional 289 shares during the last quarter. 54.35% of the stock is currently owned by institutional investors.

Royalty Pharma Stock Up 0.5%

Shares of NASDAQ:RPRX opened at $50.44 on Wednesday. The company has a debt-to-equity ratio of 0.88, a quick ratio of 2.40 and a current ratio of 2.40. Royalty Pharma PLC has a 1-year low of $31.97 and a 1-year high of $50.82. The company's fifty day moving average is $47.42 and its two-hundred day moving average is $42.56. The stock has a market capitalization of $29.10 billion, a price-to-earnings ratio of 37.36, a price-to-earnings-growth ratio of 3.21 and a beta of 0.40.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The biopharmaceutical company reported $1.46 earnings per share for the quarter, topping analysts' consensus estimates of $1.33 by $0.13. Royalty Pharma had a net margin of 32.38% and a return on equity of 28.21%. The business had revenue of $621.99 million for the quarter, compared to analysts' expectations of $839.97 million. Equities analysts anticipate that Royalty Pharma PLC will post 5.08 EPS for the current year.

Royalty Pharma Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 15th will be issued a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Friday, May 15th. Royalty Pharma's dividend payout ratio (DPR) is 69.63%.

Insider Buying and Selling at Royalty Pharma

In related news, CFO Terrance P. Coyne sold 34,791 shares of the 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 legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 139,164 shares of company stock valued at $6,624,902. 18.84% of the stock is owned by company insiders.

Analyst Ratings Changes

A number of research analysts have commented on RPRX shares. Weiss Ratings upgraded shares of Royalty Pharma from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday. Wall Street Zen downgraded shares of Royalty Pharma from a "strong-buy" rating to a "buy" rating in a research note on Saturday, February 14th. TD Cowen reiterated a "buy" rating on shares of Royalty Pharma in a research note on Friday, February 27th. Citigroup increased their price objective on shares of Royalty Pharma from $48.00 to $50.00 and gave the company a "buy" rating in a research note on Tuesday, January 27th. Finally, Morgan Stanley increased their target price on shares of Royalty Pharma from $61.00 to $63.00 and gave the stock an "overweight" rating in a report on Friday, April 10th. Six research analysts have rated the stock with a Buy rating, According to MarketBeat, the stock presently has a consensus rating of "Buy" and an average price target of $50.33.

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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