Royalty Pharma PLC $RPRX Stock Sold by New South Capital Management Inc.

Key Points

• New South Capital Management cut its Royalty Pharma stake by 39.4% in the third quarter, selling 940,450 shares; it retained 1.45 million shares worth about $84.4 million.
• Company executives sold a combined 208,252 shares worth approximately $12.3 million last quarter. The disclosed sales were made under pre-arranged Rule 10b5-1 trading plans.
• Royalty Pharma declared a quarterly dividend of $0.235 per share, equivalent to $0.94 annually and a 1.3% yield. Analysts’ consensus rating was “Buy,” with an average price target of $63.29.

New South Capital Management Inc. trimmed its stake in shares of Royalty Pharma PLC (NASDAQ:RPRX - Free Report) by 39.4% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,445,493 shares of the biopharmaceutical company's stock after selling 940,450 shares during the quarter. Royalty Pharma makes up 5.7% of New South Capital Management Inc.'s holdings, making the stock its 5th biggest holding. New South Capital Management Inc. owned about 0.25% of Royalty Pharma worth $84,359,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently made changes to their positions in RPRX. Hsbc Holdings PLC increased its position 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 valued at $74,000,000 after purchasing an additional 1,486,020 shares during the period. Renaissance Technologies LLC acquired a new position in shares of Royalty Pharma in the 1st quarter worth approximately $37,941,000. Bank of America Corp DE lifted 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 period. Carmignac Gestion bought a new stake in shares of Royalty Pharma in the 1st quarter valued at $30,279,000. Finally, Congress Asset Management Co. bought a new stake in shares of Royalty Pharma in the 3rd quarter valued at $30,761,000. 54.35% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Royalty Pharma

In related news, EVP Christopher Hite sold 100,000 shares of the business's stock in a transaction on Tuesday, September 22nd. The shares were 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 in the company, valued at $15,826,570.53. The trade was a 27.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Marshall Urist sold 4,126 shares of the stock in a transaction on Monday, October 5th. The stock was sold at an average price of $57.10, for a total transaction of $235,594.60. 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. Insiders sold a total of 208,252 shares of company stock valued at $12,324,407 in the last quarter. 18.84% of the stock is currently owned by company insiders.

Royalty Pharma Price Performance

Shares of RPRX opened at $70.01 on Thursday. Royalty Pharma PLC has a 52-week low of $37.31 and a 52-week high of $70.27. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.29 and a current ratio of 1.29. The business's 50 day moving average price is $61.29 and its two-hundred day moving average price is $54.25. The firm has a market cap of $40.26 billion, a PE ratio of 58.34, a price-to-earnings-growth ratio of 1.37 and a beta of 0.37.

Royalty Pharma Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Friday, November 13th will be paid a $0.2350 dividend. The ex-dividend date is Friday, November 13th. This represents a $0.94 annualized dividend and a dividend yield of 1.3%. Royalty Pharma's payout ratio is currently 78.33%.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on RPRX shares. JPMorgan Chase & Co. increased their price objective on shares of Royalty Pharma from $58.00 to $62.00 and gave the stock an "overweight" rating in a research report 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. TD Cowen upped their price target on shares of Royalty Pharma from $65.00 to $68.00 and gave the company a "buy" rating in a research report on Tuesday, September 8th. Bank of America reiterated a "buy" rating on shares of Royalty Pharma in a report on Wednesday, August 5th. Finally, Morgan Stanley lifted their price objective on Royalty Pharma from $65.00 to $67.00 and gave the stock an "overweight" rating in a research report on Wednesday, October 7th. Eight research analysts have rated the stock with a Buy rating. According to MarketBeat, the company has a consensus rating of "Buy" and an average target price of $63.29.

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.

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