Sumitomo Mitsui Trust Group Inc. Acquires 166,403 Shares of Royalty Pharma PLC $RPRX

Key Points

• Sumitomo Mitsui Trust Group raised its stake in Royalty Pharma by 15.1%, purchasing 166,403 shares to hold 1,268,044 shares (about 0.22% of the company) valued at roughly $49.0 million per its latest 13F filing.
• Analysts are broadly positive on RPRX — six research analysts rate the stock a Buy with an average price target of $49.00, and several brokerages recently reiterated or upgraded their ratings.
• Insider activity has been notable: CFO Terrance P. Coyne sold 34,791 shares and insiders sold 477,496 shares (about $20.4M) in the past 90 days; the company also reported a quarter that beat EPS estimates ($1.46 vs. $1.33) but missed revenue expectations (~$622M vs. ~$840M est.).

Sumitomo Mitsui Trust Group Inc. raised its holdings in shares of Royalty Pharma PLC (NASDAQ:RPRX - Free Report) by 15.1% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 1,268,044 shares of the biopharmaceutical company's stock after purchasing an additional 166,403 shares during the period. Sumitomo Mitsui Trust Group Inc. owned 0.22% of Royalty Pharma worth $48,997,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in RPRX. Smartleaf Asset Management LLC increased its stake in shares of Royalty Pharma by 868.1% during the third quarter. Smartleaf Asset Management LLC now owns 881 shares of the biopharmaceutical company's stock valued at $31,000 after purchasing an additional 790 shares in the last quarter. Financial Consulate Inc. bought a new position in shares of Royalty Pharma during the third quarter valued at approximately $35,000. Larson Financial Group LLC increased its stake in shares of Royalty Pharma by 31.9% during the third quarter. Larson Financial Group LLC now owns 1,264 shares of the biopharmaceutical company's stock valued at $45,000 after purchasing an additional 306 shares in the last quarter. Richardson Financial Services Inc. bought a new position in shares of Royalty Pharma during the third quarter valued at approximately $54,000. Finally, Farther Finance Advisors LLC increased its stake in shares of Royalty Pharma by 44.3% during the third quarter. Farther Finance Advisors LLC now owns 2,060 shares of the biopharmaceutical company's stock valued at $73,000 after purchasing an additional 632 shares in the last quarter. Institutional investors own 54.35% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on RPRX. Citigroup raised their target price 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. TD Cowen reaffirmed a "buy" rating on shares of Royalty Pharma in a research note on Friday, February 27th. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Royalty Pharma in a research note on Thursday, February 12th. UBS Group upgraded shares of Royalty Pharma from a "neutral" rating to a "buy" rating and set a $49.00 price target on the stock in a report on Friday, January 30th. Finally, Wall Street Zen cut shares of Royalty Pharma from a "strong-buy" rating to a "buy" rating in a report on Saturday, February 14th. Six research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company currently has an average rating of "Buy" and an average price target of $49.00.

Insider Activity at Royalty Pharma

In other news, CFO Terrance P. Coyne sold 34,791 shares of Royalty Pharma stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $48.33, for a total transaction of $1,681,449.03. Following the transaction, the chief financial officer owned 32,916 shares in the company, valued at $1,590,830.28. This trade represents a 51.38% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Marshall Urist sold 20,000 shares of Royalty Pharma stock in a transaction on Friday, January 30th. The stock was sold at an average price of $41.09, for a total transaction of $821,800.00. The SEC filing for this sale provides additional information. Insiders sold 477,496 shares of company stock worth $20,408,425 in the last 90 days. 18.90% of the stock is currently owned by corporate insiders.

Royalty Pharma Trading Down 0.2%

Shares of RPRX stock opened at $48.70 on Thursday. Royalty Pharma PLC has a 12-month low of $31.58 and a 12-month high of $49.06. The company has a current ratio of 2.40, a quick ratio of 2.40 and a debt-to-equity ratio of 0.88. The firm's 50 day moving average is $46.26 and its 200 day moving average is $41.36. The stock has a market capitalization of $28.09 billion, a P/E ratio of 36.07, a P/E/G ratio of 3.12 and a beta of 0.39.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last issued its earnings results on Wednesday, February 11th. The biopharmaceutical company reported $1.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.33 by $0.13. Royalty Pharma had a net margin of 32.38% and a return on equity of 28.21%. The company had revenue of $621.99 million for the quarter, compared to analysts' expectations of $839.97 million. Research analysts expect that Royalty Pharma PLC will post 4.49 earnings per share for the current year.

Royalty Pharma Company 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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