Sterling Capital Management LLC Sells 39,687 Shares of Royalty Pharma PLC $RPRX

Key Points

• Sterling Capital Management reduced its Royalty Pharma stake by 60.1% in the third quarter, selling 39,687 shares and retaining 26,347 shares valued at approximately $1.54 million.
• Institutional investors own 54.35% of Royalty Pharma, while insiders sold 208,252 shares worth about $12.3 million during the last quarter.
• Analysts remain positive, with eight Buy ratings and a consensus price target of $61.57; the company also declared a quarterly dividend of $0.235 per share, representing a 1.5% yield.

Sterling Capital Management LLC cut its stake in Royalty Pharma PLC (NASDAQ:RPRX - Free Report) by 60.1% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 26,347 shares of the biopharmaceutical company's stock after selling 39,687 shares during the period. Sterling Capital Management LLC's holdings in Royalty Pharma were worth $1,538,000 as of its most recent SEC filing.

Several other large investors also recently bought and sold shares of the stock. Hsbc Holdings PLC boosted its stake in Royalty Pharma by 2,562.2% in the first quarter. Hsbc Holdings PLC now owns 1,544,018 shares of the biopharmaceutical company's stock valued at $74,000,000 after acquiring an additional 1,486,020 shares in the last quarter. Renaissance Technologies LLC acquired a new stake in shares of Royalty Pharma during the first quarter worth about $37,941,000. Bank of America Corp DE lifted its holdings 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 valued at $167,696,000 after purchasing an additional 786,921 shares during the last quarter. Carmignac Gestion purchased a new stake in shares of Royalty Pharma in the 1st quarter valued at about $30,279,000. Finally, Congress Asset Management Co. purchased a new stake in shares of Royalty Pharma in the 3rd quarter valued at about $30,761,000. Institutional investors and hedge funds own 54.35% of the company's stock.

Insider Activity

In related news, EVP Marshall Urist sold 4,126 shares of the firm's stock in a transaction dated Monday, October 5th. The stock was 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 this link. 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 value of $5,853,000.00. Following the transaction, the executive vice president directly owned 270,401 shares in the company, valued at approximately $15,826,570.53. This represents a 27.00% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 208,252 shares of company stock valued at $12,324,407 in the last quarter. Insiders own 18.84% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on RPRX shares. JPMorgan Chase & Co. upped their target price on Royalty Pharma from $58.00 to $62.00 and gave the company an "overweight" rating in a research report on Friday, August 7th. Bank of America reaffirmed a "buy" rating on shares of Royalty Pharma in a research report on Wednesday, August 5th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $66.00 price target on shares of Royalty Pharma in a research report on Thursday, August 6th. Weiss Ratings upgraded Royalty Pharma from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday, September 14th. Finally, Morgan Stanley increased their price objective on Royalty Pharma from $65.00 to $67.00 and gave the company an "overweight" rating in a report on Wednesday, October 7th. Eight research analysts have rated the stock with a Buy rating. According to data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $61.57.

Royalty Pharma Stock Up 1.4%

Shares of NASDAQ:RPRX opened at $64.76 on Tuesday. The stock has a market cap of $37.24 billion, a P/E ratio of 44.66, a P/E/G ratio of 1.75 and a beta of 0.42. The firm has a fifty day moving average price of $59.84 and a 200 day moving average price of $52.62. The company has a debt-to-equity ratio of 0.88, a current ratio of 2.80 and a quick ratio of 2.80. Royalty Pharma PLC has a 1-year low of $35.92 and a 1-year high of $65.35.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The biopharmaceutical company reported $1.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.27 by $0.05. The company had revenue of $674.14 million for the quarter, compared to the consensus estimate of $758.93 million. Royalty Pharma had a net margin of 32.14% and a return on equity of 30.01%. Sell-side 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 paid a dividend of $0.2350 per share. The ex-dividend date is Friday, November 13th. This represents a $0.94 annualized dividend and a dividend yield of 1.5%. Royalty Pharma's dividend payout ratio is 64.83%.

Royalty Pharma Profile

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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