Royalty Pharma (NASDAQ:RPRX) Reaches New 1-Year High - What's Next?

Key Points

• Royalty Pharma shares reached a new 52-week high of $60.08, closing recently at $59.97 and trading above both their 50-day and 200-day moving averages.
• Analysts remain broadly bullish, with seven Buy ratings and a consensus Buy recommendation, although the average price target of $56.57 is below the current share price. Recent targets range from $57 to $66.
• The company reported quarterly EPS of $1.30, exceeding estimates of $1.22, and declared a quarterly dividend of $0.235 per share, equivalent to a 1.6% yield; insiders have sold roughly $21.6 million in shares over the past three months.

Royalty Pharma PLC (NASDAQ:RPRX - Get Free Report)'s stock price hit a new 52-week high during trading on Wednesday . The stock traded as high as $60.08 and last traded at $59.97, with a volume of 3138526 shares trading hands. The stock had previously closed at $58.73.

Analyst Ratings Changes

RPRX has been the topic of a number of research analyst reports. Weiss Ratings downgraded Royalty Pharma from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, May 15th. Citigroup increased their price objective on Royalty Pharma from $50.00 to $66.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Morgan Stanley lifted their price objective on Royalty Pharma from $61.00 to $63.00 and gave the stock an "overweight" rating in a research report on Friday, April 10th. UBS Group boosted their target price on Royalty Pharma from $51.00 to $57.00 and gave the company a "buy" rating in a research note on Tuesday, April 21st. Finally, TD Cowen upped their target price on Royalty Pharma from $50.00 to $65.00 and gave the company a "buy" rating in a report on Monday, July 13th. Seven investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, Royalty Pharma presently has a consensus rating of "Buy" and an average target price of $56.57.

Royalty Pharma Stock Up 2.1%

The company's fifty day simple moving average is $55.88 and its 200 day simple moving average is $49.54. The company has a quick ratio of 2.66, a current ratio of 2.66 and a debt-to-equity ratio of 0.86. The firm has a market capitalization of $34.53 billion, a PE ratio of 40.80, a price-to-earnings-growth ratio of 10.40 and a beta of 0.43.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last posted its earnings results on Wednesday, May 6th. The biopharmaceutical company reported $1.30 earnings per share for the quarter, topping analysts' consensus estimates of $1.22 by $0.08. Royalty Pharma had a return on equity of 29.25% and a net margin of 33.88%.The firm had revenue of $630.58 million for the quarter, compared to the consensus estimate of $881.69 million. Analysts anticipate that Royalty Pharma PLC will post 5.18 earnings per share for the current fiscal year.

Royalty Pharma Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Friday, August 14th will be given a dividend of $0.235 per share. The ex-dividend date is Friday, August 14th. This represents a $0.94 annualized dividend and a dividend yield of 1.6%. Royalty Pharma's payout ratio is currently 63.95%.

Insider Transactions at Royalty Pharma

In other Royalty Pharma news, EVP Marshall Urist sold 9,099 shares of the firm's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $55.88, for a total transaction of $508,452.12. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Terrance P. Coyne sold 64,399 shares of the firm's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $53.98, for a total value of $3,476,258.02. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 393,009 shares of company stock valued at $21,601,827 in the last three months. Company insiders own 18.84% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. Handelsbanken Fonder AB boosted its stake in Royalty Pharma by 28.0% during the second quarter. Handelsbanken Fonder AB now owns 557,028 shares of the biopharmaceutical company's stock worth $31,233,000 after acquiring an additional 121,761 shares in the last quarter. Assenagon Asset Management S.A. increased its stake in shares of Royalty Pharma by 16.6% during the second quarter. Assenagon Asset Management S.A. now owns 22,668 shares of the biopharmaceutical company's stock valued at $1,271,000 after purchasing an additional 3,226 shares in the last quarter. GAMMA Investing LLC increased its stake in shares of Royalty Pharma by 16.4% during the second quarter. GAMMA Investing LLC now owns 5,595 shares of the biopharmaceutical company's stock valued at $314,000 after purchasing an additional 789 shares in the last quarter. CoreCap Advisors LLC lifted its holdings in shares of Royalty Pharma by 89.2% during the second quarter. CoreCap Advisors LLC now owns 876 shares of the biopharmaceutical company's stock valued at $49,000 after purchasing an additional 413 shares during the last quarter. Finally, Eastern Bank lifted its holdings in shares of Royalty Pharma by 5.4% during the second quarter. Eastern Bank now owns 694,925 shares of the biopharmaceutical company's stock valued at $38,964,000 after purchasing an additional 35,547 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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