Royalty Pharma PLC $RPRX Stock: Park Avenue Securities LLC Cuts Holdings

Key Points

• Park Avenue Securities cut its Royalty Pharma position by 52.1% in the third quarter, selling 24,473 shares and retaining 22,492 shares valued at approximately $1.31 million. Institutional investors and hedge funds collectively own 54.35% of RPRX.
• Wall Street sentiment remains positive: eight analysts rate the stock “Buy,” with a consensus price target of $61.57. Recent target increases came from TD Cowen and JPMorgan, although insiders sold 208,252 shares worth about $12.3 million over the past 90 days.
• Royalty Pharma reported quarterly EPS of $1.32, exceeding estimates of $1.27, while revenue of $674.14 million fell short of expectations. The company declared a quarterly dividend of $0.235 per share, equivalent to a 1.4% annual yield.

Park Avenue Securities LLC lessened its position in Royalty Pharma PLC (NASDAQ:RPRX - Free Report) by 52.1% during the third quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 22,492 shares of the biopharmaceutical company's stock after selling 24,473 shares during the period. Park Avenue Securities LLC's holdings in Royalty Pharma were worth $1,313,000 at the end of the most recent reporting period.

Other hedge funds have also recently bought and sold shares of the company. Bank of America Corp DE lifted its stake in Royalty Pharma by 29.0% during the first quarter. Bank of America Corp DE now owns 3,495,846 shares of the biopharmaceutical company's stock valued at $167,696,000 after purchasing an additional 786,921 shares during the last quarter. Amundi grew its holdings 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 worth $148,168,000 after acquiring an additional 409,394 shares during the last quarter. Dorsey Asset Management LLC raised its holdings in Royalty Pharma by 0.8% during the 1st quarter. Dorsey Asset Management LLC now owns 2,276,570 shares of the biopharmaceutical company's stock worth $109,207,000 after buying an additional 17,101 shares during the period. Hsbc Holdings PLC raised its holdings in Royalty Pharma by 2,562.2% during the 1st quarter. Hsbc Holdings PLC now owns 1,544,018 shares of the biopharmaceutical company's stock worth $74,000,000 after buying an additional 1,486,020 shares during the period. Finally, Sumitomo Mitsui Trust Group Inc. boosted its holdings in shares of Royalty Pharma by 0.4% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,273,705 shares of the biopharmaceutical company's stock worth $61,100,000 after buying an additional 5,661 shares during the period. 54.35% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on RPRX shares. Bank of America reaffirmed a "buy" rating on shares of Royalty Pharma in a research note on Wednesday, August 5th. TD Cowen increased their price target on shares of Royalty Pharma from $65.00 to $68.00 and gave the stock a "buy" rating in a research report on Tuesday, September 8th. JPMorgan Chase & Co. upped their price objective on shares of Royalty Pharma from $58.00 to $62.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. Weiss Ratings upgraded shares of Royalty Pharma from a "buy (b-)" rating to a "buy (b)" rating in a report on Monday, September 14th. Finally, Wall Street Zen cut Royalty Pharma from a "strong-buy" rating to a "buy" rating in a research report on Saturday, September 26th. Eight analysts have rated the stock with a Buy rating. According to data from MarketBeat, the company has a consensus rating of "Buy" and an average price target of $61.57.

Insider Transactions at Royalty Pharma

In other news, EVP Christopher Hite sold 100,000 shares of the company's stock in a transaction on 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 transaction, the executive vice president owned 270,401 shares of the company's stock, valued at $15,826,570.53. This represents a 27.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Marshall Urist sold 4,126 shares of Royalty Pharma stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $57.10, for a total value of $235,594.60. 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 sold 208,252 shares of company stock valued at $12,324,407. Insiders own 18.84% of the company's stock.

Royalty Pharma Trading Down 1.0%

Shares of RPRX stock opened at $66.52 on Tuesday. The business's 50 day moving average is $60.38 and its two-hundred day moving average is $53.26. The company has a quick ratio of 2.80, a current ratio of 2.80 and a debt-to-equity ratio of 0.88. Royalty Pharma PLC has a 12 month low of $36.03 and a 12 month high of $67.71. The company has a market cap of $38.25 billion, a PE ratio of 45.88, a price-to-earnings-growth ratio of 1.78 and a beta of 0.42.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last posted its earnings results on Wednesday, August 5th. The biopharmaceutical company reported $1.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.27 by $0.05. The business had revenue of $674.14 million for the quarter, compared to analyst estimates of $758.93 million. Royalty Pharma had a net margin of 32.14% and a return on equity of 30.01%. Equities analysts predict that Royalty Pharma PLC will post 5.29 EPS for the current year.

Royalty Pharma Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Friday, November 13th will be issued a dividend of $0.2350 per share. This represents a $0.94 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Friday, November 13th. Royalty Pharma's dividend payout ratio is presently 64.83%.

About Royalty Pharma

Royalty Pharma plc NASDAQ: RPRX is a biopharmaceutical royalty investment company that provides funding to life sciences companies, academic institutions, and other organizations in exchange for rights to future payments tied to approved or development-stage medicines. Its business model gives innovators access to capital while allowing Royalty Pharma to participate in the long-term commercial success of pharmaceutical products.

The company acquires and manages royalty interests across a broad range of therapeutic areas, including immunology, oncology, neuroscience, rare diseases, and infectious diseases.

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