Royalty Pharma (NASDAQ:RPRX) Sets New 12-Month High - Here's Why

Key Points

• Royalty Pharma shares reached a new 52-week high, trading around $65.12 and rising 1.2%, giving the company a market capitalization of approximately $37.15 billion.
• Analyst sentiment remains positive: eight analysts rate the stock a Buy, while TD Cowen raised its price target to $68. The consensus price target is $61.57.
• The company beat quarterly EPS expectations with $1.32 versus the $1.27 consensus estimate and announced a quarterly dividend of $0.235 per share, equivalent to a 1.5% annual yield.

Royalty Pharma PLC (NASDAQ:RPRX - Get Free Report)'s share price hit a new 52-week high on Monday. The company traded as high as $65.01 and last traded at $65.1190, with a volume of 101,514 shares trading hands. The stock had previously closed at $63.86.

Analysts Set New Price Targets

A number of research analysts have recently commented on RPRX shares. TD Cowen increased their price target on Royalty Pharma from $65.00 to $68.00 and gave the company a "buy" rating in a research note on Tuesday, September 8th. Wall Street Zen downgraded Royalty Pharma from a "strong-buy" rating to a "buy" rating in a research note on Saturday, September 26th. Weiss Ratings raised shares of Royalty Pharma from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday, September 14th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $66.00 price objective on shares of Royalty Pharma in a research report on Thursday, August 6th. Finally, Bank of America reaffirmed a "buy" rating on shares of Royalty Pharma in a report on Wednesday, August 5th. Eight equities research analysts have rated the stock with a Buy rating. According to MarketBeat.com, the stock currently has an average rating of "Buy" and an average price target of $61.57.

Royalty Pharma Stock Up 1.2%

The firm has a market capitalization of $37.15 billion, a P/E ratio of 44.62, a P/E/G ratio of 1.75 and a beta of 0.42. The company has a fifty day simple moving average of $59.83 and a 200 day simple moving average of $56.28. The company has a quick ratio of 2.80, a current ratio of 2.80 and a debt-to-equity ratio of 0.88.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The biopharmaceutical company reported $1.32 EPS for the quarter, beating analysts' consensus estimates of $1.27 by $0.05. Royalty Pharma had a net margin of 32.14% and a return on equity of 30.01%. The firm had revenue of $674.14 million for the quarter, compared to analysts' expectations of $758.93 million. On average, equities analysts expect that Royalty Pharma PLC will post 5.29 EPS for the current fiscal year.

Royalty Pharma Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Friday, November 13th will be issued a $0.2350 dividend. This represents a $0.94 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Friday, November 13th. Royalty Pharma's dividend payout ratio (DPR) is currently 64.83%.

Insiders Place Their Bets

In other Royalty Pharma news, EVP Marshall Urist sold 4,126 shares of the company's stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $57.10, for a total value of $235,594.60. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through 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 stock in a transaction on 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 completion of the sale, the executive vice president owned 270,401 shares of the company's stock, valued at $15,826,570.53. The trade was a 27.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 208,252 shares of company stock worth $12,324,407. 18.84% of the stock is owned by insiders.

Institutional Investors Weigh In On Royalty Pharma

Several hedge funds and other institutional investors have recently modified their holdings of the business. Viewpoint Investment Partners Corp purchased a new stake in Royalty Pharma during the third quarter valued at approximately $479,000. Signaturefd LLC grew its position in shares of Royalty Pharma by 13.4% in the third quarter. Signaturefd LLC now owns 4,818 shares of the biopharmaceutical company's stock valued at $281,000 after purchasing an additional 569 shares during the period. Wedbush Securities Inc. purchased a new stake in shares of Royalty Pharma during the third quarter worth approximately $250,000. Yousif Capital Management LLC boosted its position in Royalty Pharma by 7.0% during the third quarter. Yousif Capital Management LLC now owns 7,424 shares of the biopharmaceutical company's stock worth $433,000 after acquiring an additional 485 shares during the last quarter. Finally, MBL Wealth LLC lifted its stake in Royalty Pharma by 7.3% in the 3rd quarter. MBL Wealth LLC now owns 3,908 shares of the biopharmaceutical company's stock worth $228,000 after purchasing an additional 266 shares in the last quarter. 54.35% of the stock is currently owned by hedge funds and other institutional investors.

Royalty Pharma Company 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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