Royalty Pharma (NASDAQ:RPRX) Hits New 52-Week High - What's Next?

Key Points

• Royalty Pharma hit a 52-week high, reaching $69.83 before last trading at $69.07.
• Analysts remain positive, with eight Buy ratings and recent price-target increases; however, the consensus target of $63.29 is below the stock’s latest price.
• The company declared a quarterly dividend of $0.235 per share, equivalent to $0.94 annually and a 1.4% yield.

Shares of Royalty Pharma PLC (NASDAQ:RPRX - Get Free Report) reached a new 52-week high on Wednesday. The stock traded as high as $69.83 and last traded at $69.07, with a volume of 452,424 shares trading hands. The stock had previously closed at $69.45.

Wall Street Analysts Forecast Growth

RPRX has been the topic of a number of recent analyst reports. Bank of America restated a "buy" rating on shares of Royalty Pharma in a report on Wednesday, August 5th. Morgan Stanley lifted their price objective on shares of Royalty Pharma from $65.00 to $67.00 and gave the company an "overweight" rating in a report on Wednesday, October 7th. TD Cowen upped their price target on shares of Royalty Pharma from $65.00 to $68.00 and gave the stock a "buy" rating in a research report on Tuesday, September 8th. Weiss Ratings upgraded Royalty Pharma from a "buy (b-)" rating to a "buy (b)" rating in a report on Monday, September 14th. Finally, Citigroup upped their target price on Royalty Pharma from $70.00 to $78.00 and gave the company a "buy" rating in a report on Thursday, November 5th. Eight equities research analysts have rated the stock with a Buy rating. Based on data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $63.29.

Royalty Pharma Stock Performance

The firm has a 50 day moving average price of $61.13 and a 200-day moving average price of $54.10. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.29 and a quick ratio of 1.29. The firm has a market capitalization of $40.00 billion, a price-to-earnings ratio of 57.98, a PEG ratio of 1.36 and a beta of 0.37.

Royalty Pharma Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Friday, November 13th will be issued a dividend of $0.2350 per share. This represents a $0.94 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Friday, November 13th. Royalty Pharma's payout ratio is 78.33%.

Insider Activity at Royalty Pharma

In other news, EVP Christopher Hite sold 100,000 shares of the company's stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $58.53, for a total value of $5,853,000.00. Following the completion of the transaction, the executive vice president owned 270,401 shares in the company, valued at approximately $15,826,570.53. This represents a 27.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Marshall Urist sold 4,126 shares of the company's stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $57.10, for a total value of $235,594.60. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 208,252 shares of company stock valued at $12,324,407 in the last 90 days. Insiders own 18.84% of the company's stock.

Institutional Investors Weigh In On Royalty Pharma

Hedge funds and other institutional investors have recently modified their holdings of the stock. Provenance Wealth Advisors LLC purchased a new position in shares of Royalty Pharma during the 3rd quarter worth approximately $26,000. CoreCap Advisors LLC lifted its stake in Royalty Pharma by 89.2% in the 2nd quarter. CoreCap Advisors LLC now owns 876 shares of the biopharmaceutical company's stock valued at $49,000 after buying an additional 413 shares in the last quarter. Bessemer Group Inc. lifted its stake in Royalty Pharma by 34.7% in the 1st quarter. Bessemer Group Inc. now owns 1,094 shares of the biopharmaceutical company's stock valued at $53,000 after buying an additional 282 shares in the last quarter. Root Financial Partners LLC acquired a new stake in Royalty Pharma during the 3rd quarter valued at $62,000. Finally, Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. acquired a new stake in Royalty Pharma during the 3rd quarter valued at $63,000. 54.35% of the stock is currently owned by institutional investors and hedge funds.

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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