Royalty Pharma (NASDAQ:RPRX) Lowered to "Buy" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Royalty Pharma from “strong buy” to “buy,” although the broader analyst consensus remains “Buy,” with an average price target of $60.86.
• Royalty Pharma shares opened at $56.77, down 0.9%, while the company’s latest quarterly results showed adjusted EPS of $1.32, beating estimates of $1.27; revenue of $674.14 million fell short of the $758.93 million consensus.
• Insiders have sold 393,009 shares worth approximately $21.6 million over the past three months, while hedge funds and other institutional investors own 54.35% of the stock.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Saturday.

RPRX has been the topic of a number of other research reports. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $66.00 price objective on shares of Royalty Pharma in a report on Thursday. Bank of America reissued a "buy" rating on shares of Royalty Pharma in a research note on Wednesday. Morgan Stanley reissued an "overweight" rating and issued a $65.00 price target on shares of Royalty Pharma in a report on Thursday. JPMorgan Chase & Co. lifted their price target on Royalty Pharma from $58.00 to $62.00 and gave the company an "overweight" rating in a research note on Friday. Finally, TD Cowen upped their price objective on Royalty Pharma from $50.00 to $65.00 and gave the stock a "buy" rating in a report on Monday, July 13th. Eight investment analysts have rated the stock with a Buy rating, According to MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $60.86.

Royalty Pharma Stock Down 0.9%

Shares of NASDAQ:RPRX opened at $56.77 on Friday. The company has a market cap of $32.69 billion, a price-to-earnings ratio of 39.15, a PEG ratio of 1.34 and a beta of 0.43. The firm's 50-day simple moving average is $56.47 and its 200-day simple moving average is $50.47. The company has a quick ratio of 2.66, a current ratio of 2.80 and a debt-to-equity ratio of 0.88. Royalty Pharma has a fifty-two week low of $34.08 and a fifty-two week high of $60.44.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The biopharmaceutical company reported $1.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.27 by $0.05. The firm had revenue of $674.14 million during the quarter, compared to analysts' expectations of $758.93 million. Royalty Pharma had a net margin of 32.14% and a return on equity of 30.01%. As a group, equities research analysts predict that Royalty Pharma will post 5.26 earnings per share for the current year.

Insider Activity at Royalty Pharma

In other news, CFO Terrance P. Coyne sold 64,399 shares of Royalty Pharma stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $53.98, for a total transaction of $3,476,258.02. The transaction was disclosed in a filing 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, Director Gregory Norden sold 3,045 shares of Royalty Pharma stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $53.00, for a total transaction of $161,385.00. Following the sale, the director owned 191,803 shares of the company's stock, valued at approximately $10,165,559. The trade was a 1.56% decrease in their ownership of the stock. 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 three months, insiders have sold 393,009 shares of company stock valued at $21,601,827. 18.84% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Royalty Pharma

Several hedge funds have recently bought and sold shares of RPRX. LM Advisors LLC purchased a new stake in Royalty Pharma during the fourth quarter worth $26,000. Blue Trust Inc. grew its holdings in Royalty Pharma by 173.4% in the first quarter. Blue Trust Inc. now owns 689 shares of the biopharmaceutical company's stock valued at $33,000 after purchasing an additional 437 shares during the last quarter. Lloyd Advisory Services LLC. purchased a new position in shares of Royalty Pharma in the fourth quarter valued at $30,000. Private Trust Co. NA increased its position in shares of Royalty Pharma by 52.9% in the fourth quarter. Private Trust Co. NA now owns 832 shares of the biopharmaceutical company's stock valued at $32,000 after buying an additional 288 shares in the last quarter. Finally, CoreCap Advisors LLC raised its stake in shares of Royalty Pharma by 89.2% during the 2nd quarter. CoreCap Advisors LLC now owns 876 shares of the biopharmaceutical company's stock worth $49,000 after buying an additional 413 shares during the last quarter. 54.35% of the stock is owned by hedge funds and other institutional investors.

About Royalty Pharma

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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