Royalty Pharma (NASDAQ:RPRX) Cut to Hold at Wall Street Zen

Key Points

• Royalty Pharma has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, indicating a cautious outlook on the stock's performance.
• Despite the downgrade, the stock has a consensus rating of "Buy" with Morgan Stanley and Citigroup maintaining higher target prices of $54.00 and $42.00, respectively.
• The company reported earnings of $1.14 EPS for the last quarter, exceeding estimates but with revenues falling short compared to expectations, raising concerns about future performance.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Friday.

Several other research analysts also recently commented on the company. Morgan Stanley boosted their target price on Royalty Pharma from $51.00 to $54.00 and gave the stock an "overweight" rating in a research note on Thursday, July 10th. Citigroup boosted their target price on Royalty Pharma from $40.00 to $42.00 and gave the stock a "buy" rating in a research note on Tuesday, July 22nd. One analyst has rated the stock with a Strong Buy rating and two have issued a Buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus price target of $48.00.

Royalty Pharma Trading Up 0.0%

RPRX opened at $36.32 on Friday. Royalty Pharma has a twelve month low of $24.05 and a twelve month high of $38.00. The company has a 50-day simple moving average of $36.17 and a 200 day simple moving average of $33.90. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.74. The stock has a market capitalization of $21.18 billion, a price-to-earnings ratio of 20.99, a P/E/G ratio of 2.37 and a beta of 0.55.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last issued its earnings results on Wednesday, August 6th. The biopharmaceutical company reported $1.14 EPS for the quarter, topping the consensus estimate of $1.10 by $0.04. The firm had revenue of $578.67 million during the quarter, compared to the consensus estimate of $750.06 million. Royalty Pharma had a return on equity of 25.54% and a net margin of 44.23%. Analysts predict that Royalty Pharma will post 4.49 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Merit Financial Group LLC acquired a new position in shares of Royalty Pharma in the first quarter valued at approximately $252,000. M&T Bank Corp increased its stake in shares of Royalty Pharma by 23.4% in the first quarter. M&T Bank Corp now owns 28,967 shares of the biopharmaceutical company's stock valued at $902,000 after buying an additional 5,500 shares during the period. Yousif Capital Management LLC acquired a new stake in Royalty Pharma during the 1st quarter valued at approximately $275,000. Asset Management One Co. Ltd. increased its position in Royalty Pharma by 8.0% during the 1st quarter. Asset Management One Co. Ltd. now owns 164,931 shares of the biopharmaceutical company's stock valued at $5,134,000 after purchasing an additional 12,148 shares during the period. Finally, Amalgamated Bank increased its position in Royalty Pharma by 4.4% during the 1st quarter. Amalgamated Bank now owns 20,423 shares of the biopharmaceutical company's stock valued at $636,000 after purchasing an additional 866 shares during the period. Institutional investors and hedge funds own 54.35% of the company's stock.

Royalty Pharma Company Profile

Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovations in the biopharmaceutical industry in the United States. It is also involved in the identification, evaluation, and acquisition of royalties on various biopharmaceutical therapies. In addition, the company collaborates with innovators from academic institutions, research hospitals and not-for-profits, small and mid-cap biotechnology companies, and pharmaceutical companies.

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