Vanguard Group Inc. Cuts Stake in Royalty Pharma PLC $RPRX

Key Points

• Vanguard Group cut its stake in Royalty Pharma by 9.2% in Q4, selling 1,001,926 shares and ending the period with 9,934,612 shares (about 1.72% of the company) worth roughly $383.9 million.
• Q1 results and outlook: Royalty Pharma posted an EPS beat with strong cash generation (net cash from operations about $718M) and raised 2026 portfolio receipts guidance to $3,325M–$3,450M, signaling continued cash‑flow growth.
• Market sentiment is largely positive—multiple analysts raised price targets (e.g., UBS to $57, Morgan Stanley to $63) and the consensus rating is "Buy" with an average target near $50.33.

Vanguard Group Inc. reduced its position in shares of Royalty Pharma PLC (NASDAQ:RPRX - Free Report) by 9.2% in the fourth quarter, according to its most recent filing with the SEC. The fund owned 9,934,612 shares of the biopharmaceutical company's stock after selling 1,001,926 shares during the quarter. Vanguard Group Inc. owned about 1.72% of Royalty Pharma worth $383,873,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Sava Infond d.o.o. lifted its position in Royalty Pharma by 10.5% in the fourth quarter. Sava Infond d.o.o. now owns 23,200 shares of the biopharmaceutical company's stock worth $896,000 after buying an additional 2,200 shares during the last quarter. Marathon Capital Management lifted its position in Royalty Pharma by 4.6% in the fourth quarter. Marathon Capital Management now owns 7,598 shares of the biopharmaceutical company's stock worth $294,000 after buying an additional 332 shares during the last quarter. China Universal Asset Management Co. Ltd. lifted its position in Royalty Pharma by 5.1% in the fourth quarter. China Universal Asset Management Co. Ltd. now owns 79,620 shares of the biopharmaceutical company's stock worth $3,077,000 after buying an additional 3,845 shares during the last quarter. Arizona State Retirement System lifted its position in Royalty Pharma by 0.5% in the fourth quarter. Arizona State Retirement System now owns 112,608 shares of the biopharmaceutical company's stock worth $4,351,000 after buying an additional 528 shares during the last quarter. Finally, Torray Investment Partners LLC lifted its position in Royalty Pharma by 5.9% in the fourth quarter. Torray Investment Partners LLC now owns 744,355 shares of the biopharmaceutical company's stock worth $28,762,000 after buying an additional 41,472 shares during the last quarter. 54.35% of the stock is currently owned by institutional investors.

Royalty Pharma Trading Up 0.6%

Royalty Pharma stock opened at $50.77 on Thursday. The company has a quick ratio of 2.40, a current ratio of 2.40 and a debt-to-equity ratio of 0.88. Royalty Pharma PLC has a 52 week low of $32.15 and a 52 week high of $51.65. The company has a market capitalization of $29.28 billion, a price-to-earnings ratio of 37.60, a price-to-earnings-growth ratio of 3.22 and a beta of 0.40. The stock has a 50-day moving average price of $47.52 and a 200 day moving average price of $42.66.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last announced its quarterly earnings results on Wednesday, February 11th. The biopharmaceutical company reported $1.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.33 by $0.13. Royalty Pharma had a return on equity of 28.21% and a net margin of 32.38%.The company had revenue of $621.99 million during the quarter, compared to the consensus estimate of $839.97 million. Sell-side analysts anticipate that Royalty Pharma PLC will post 5.08 EPS for the current year.

Royalty Pharma Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 15th will be paid a dividend of $0.235 per share. This represents a $0.94 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Friday, May 15th. Royalty Pharma's dividend payout ratio is presently 69.63%.

Insider Buying and Selling at Royalty Pharma

In related news, CFO Terrance P. Coyne sold 34,791 shares of the business's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $49.78, for a total transaction of $1,731,895.98. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 139,164 shares of company stock worth $6,624,902. Corporate insiders own 18.84% of the company's stock.

Analyst Upgrades and Downgrades

RPRX has been the subject of several research analyst reports. UBS Group lifted their target price on Royalty Pharma from $51.00 to $57.00 and gave the stock a "buy" rating in a research report on Tuesday, April 21st. The Goldman Sachs Group restated a "buy" rating on shares of Royalty Pharma in a research note on Thursday, February 12th. Morgan Stanley raised their price target on Royalty Pharma from $61.00 to $63.00 and gave the company an "overweight" rating in a research note on Friday, April 10th. Citigroup raised their price target on Royalty Pharma from $48.00 to $50.00 and gave the company a "buy" rating in a research note on Tuesday, January 27th. Finally, TD Cowen restated a "buy" rating on shares of Royalty Pharma in a research note on Friday, February 27th. Six research analysts have rated the stock with a Buy rating, According to MarketBeat, Royalty Pharma has an average rating of "Buy" and a consensus target price of $50.33.

Royalty Pharma News Roundup

Here are the key news stories impacting Royalty Pharma this week:

• Positive Sentiment: Raised full‑year guidance and portfolio receipts growth — Royalty reported Portfolio Receipts of $925M in Q1 (up ~10%) and raised 2026 Portfolio Receipts guidance to $3,325M–$3,450M, signaling management expects continued cash flow growth. Royalty Pharma reports first quarter 2026 results
• Positive Sentiment: EPS beat and strong profitability metrics — RPRX reported EPS of ~$1.30, beating consensus (~$1.22); margins and ROE remain robust, supporting the stock’s valuation premium. Royalty Pharma (RPRX) Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Strong cash generation — Net cash provided by operations was highlighted at $718M in Q1, underpinning the company’s ability to fund royalty purchases and maintain distributions. Royalty Pharma reports first quarter 2026 results
• Neutral Sentiment: Earnings call tone constructive — Management struck an upbeat, growth‑focused tone on the Q1 call, which supports sentiment but requires execution on deal flow. Royalty Pharma’s Earnings Call Signals Confident Growth
• Neutral Sentiment: Investor materials and transcripts available — Full earnings transcript and slides provide detail on portfolio composition, cash flow outlook and M&A posture for those modeling future receipts. Royalty Pharma (RPRX) Q1 2026 Earnings Transcript Royalty Pharma plc (RPRX) Q1 2026 Earnings Call Transcript Royalty Pharma plc 2026 Q1 - Results - Earnings Call Presentation
• Neutral Sentiment: Valuation comparison — Analysts and screens comparing RPRX to peers like Amgen highlight different risk/return profiles (royalty cash‑flow vs. operating biotech), useful for relative-value decisions. RPRX vs. AMGN: Which Stock Is the Better Value Option?
• Negative Sentiment: Revenue came in below some analyst expectations — Reported revenue/receipts metrics were lower than certain street revenue estimates, which tempers near‑term upside until guidance is realized and deal activity continues. Press Release / Q1 Results PDF
• Negative Sentiment: Shares recently hit a 52‑week high — while positive, this increases the risk of short‑term profit taking and implies a higher valuation that needs continued execution to justify. Royalty Pharma PLC (RPRX) Hit a 52 Week High, Can the Run Continue?

Royalty Pharma 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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