SEB Asset Management AB Invests $12.97 Million in Royalty Pharma PLC $RPRX

Key Points

• SEB Asset Management AB disclosed a new first-quarter stake in Royalty Pharma, buying 270,309 shares worth about $12.97 million.
• Analyst sentiment remains positive, with several firms reiterating or raising targets; Royalty Pharma now carries a consensus Buy rating and a price target of $56.57.
• The company reported Q1 EPS of $1.30, beating estimates, and also announced a quarterly dividend of $0.235 per share payable Sept. 10, implying a 1.6% yield.

SEB Asset Management AB bought a new stake in Royalty Pharma PLC (NASDAQ:RPRX - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 270,309 shares of the biopharmaceutical company's stock, valued at approximately $12,967,000.

Several other institutional investors and hedge funds have also modified their holdings of the business. LM Advisors LLC acquired a new stake in shares of Royalty Pharma during the 4th quarter worth $26,000. Lloyd Advisory Services LLC. acquired a new position in Royalty Pharma in the fourth quarter valued at about $30,000. Private Trust Co. NA lifted its position in Royalty Pharma by 52.9% during the fourth quarter. Private Trust Co. NA now owns 832 shares of the biopharmaceutical company's stock worth $32,000 after purchasing an additional 288 shares during the period. Blue Trust Inc. lifted its position in Royalty Pharma by 173.4% during the first quarter. Blue Trust Inc. now owns 689 shares of the biopharmaceutical company's stock worth $33,000 after purchasing an additional 437 shares during the period. Finally, CIBC Private Wealth Group LLC grew its stake in Royalty Pharma by 66.4% during the fourth quarter. CIBC Private Wealth Group LLC now owns 1,118 shares of the biopharmaceutical company's stock worth $43,000 after buying an additional 446 shares in the last quarter. 54.35% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

RPRX has been the topic of a number of research analyst reports. Wall Street Zen raised Royalty Pharma from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 9th. Weiss Ratings downgraded Royalty Pharma from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, May 15th. JPMorgan Chase & Co. lifted their target price on Royalty Pharma from $50.00 to $58.00 and gave the company an "overweight" rating in a research report on Thursday, May 7th. Morgan Stanley boosted their target price on Royalty Pharma from $61.00 to $63.00 and gave the stock an "overweight" rating in a research note on Friday, April 10th. Finally, Citigroup increased their target price on shares of Royalty Pharma from $50.00 to $66.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Seven equities research analysts have rated the stock with a Buy rating, According to MarketBeat, Royalty Pharma currently has a consensus rating of "Buy" and a consensus price target of $56.57.

Royalty Pharma Stock Performance

NASDAQ:RPRX opened at $57.29 on Tuesday. The company has a fifty day moving average of $55.12 and a 200-day moving average of $48.72. The firm has a market capitalization of $32.99 billion, a P/E ratio of 38.97, a P/E/G ratio of 10.30 and a beta of 0.43. The company has a quick ratio of 2.66, a current ratio of 2.66 and a debt-to-equity ratio of 0.86. Royalty Pharma PLC has a twelve month low of $34.08 and a twelve month high of $59.44.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last issued its earnings results on Wednesday, May 6th. The biopharmaceutical company reported $1.30 EPS for the quarter, beating the consensus estimate of $1.22 by $0.08. The company had revenue of $630.58 million during the quarter, compared to the consensus estimate of $881.69 million. Royalty Pharma had a return on equity of 29.25% and a net margin of 33.88%. As a group, sell-side analysts anticipate that Royalty Pharma PLC will post 5.18 EPS for the current year.

Royalty Pharma Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Friday, August 14th will be paid a $0.235 dividend. The ex-dividend date is Friday, August 14th. This represents a $0.94 annualized dividend and a yield of 1.6%. Royalty Pharma's dividend payout ratio (DPR) is 63.95%.

Insider Activity

In other news, Director Gregory Norden sold 3,045 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $53.00, for a total transaction of $161,385.00. Following the completion of the sale, the director owned 191,803 shares in the company, valued at $10,165,559. This trade represents a 1.56% decrease in their position. The sale 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 Christopher Hite sold 100,000 shares of the firm's stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $56.52, for a total value of $5,652,000.00. Following the completion of the sale, the executive vice president directly owned 459,399 shares of the company's stock, valued at $25,965,231.48. This represents a 17.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 427,800 shares of company stock worth $23,333,723. Corporate insiders own 18.84% of the company's stock.

About Royalty Pharma

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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