Royalty Pharma (NASDAQ:RPRX) Sets New 1-Year High - Here's What Happened

Key Points

• Royalty Pharma shares reached a new 52-week high, trading as high as $60.52 and last changing hands near $60.77. The stock has an average analyst rating of “Buy,” with a consensus price target of $60.86.
• The company beat quarterly earnings expectations, reporting $1.32 in EPS versus the $1.27 consensus, although revenue of $674.14 million fell short of the $758.93 million estimate.
• Royalty Pharma declared a quarterly dividend of $0.235 per share, equal to $0.94 annually and a 1.6% yield. Insiders have sold 362,596 shares worth nearly $20 million over the past 90 days, while institutional investors own 54.35% of the stock.

Royalty Pharma PLC (NASDAQ:RPRX - Get Free Report)'s stock price reached a new 52-week high on Wednesday . The company traded as high as $60.52 and last traded at $60.7740, with a volume of 100071 shares. The stock had previously closed at $59.69.

Analyst Ratings Changes

A number of research firms recently issued reports on RPRX. UBS Group boosted their target price on shares of Royalty Pharma from $51.00 to $57.00 and gave the company a "buy" rating in a research report on Tuesday, April 21st. Bank of America reaffirmed a "buy" rating on shares of Royalty Pharma in a research report on Wednesday, August 5th. TD Cowen lifted their price objective on Royalty Pharma from $50.00 to $65.00 and gave the company a "buy" rating in a research note on Monday, July 13th. The Goldman Sachs Group restated a "buy" rating and issued a $66.00 target price on shares of Royalty Pharma in a research note on Thursday, August 6th. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Royalty Pharma in a report on Wednesday, August 12th. Eight investment analysts have rated the stock with a Buy rating, According to MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $60.86.

Royalty Pharma Stock Performance

The firm's 50 day moving average is $56.99 and its 200-day moving average is $51.46. The stock has a market capitalization of $34.84 billion, a price-to-earnings ratio of 41.66, a PEG ratio of 1.37 and a beta of 0.43. The company has a debt-to-equity ratio of 0.88, a quick ratio of 2.80 and a current ratio of 2.80.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The biopharmaceutical company reported $1.32 EPS for the quarter, beating the consensus estimate of $1.27 by $0.05. The company had revenue of $674.14 million for the quarter, compared to analyst estimates of $758.93 million. Royalty Pharma had a net margin of 32.14% and a return on equity of 30.01%. Analysts forecast that Royalty Pharma PLC will post 5.3 earnings per share for the current fiscal year.

Royalty Pharma Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Friday, August 14th will be issued a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 1.6%. The ex-dividend date is Friday, August 14th. Royalty Pharma's payout ratio is presently 64.83%.

Insider Buying and Selling

In other news, EVP Christopher Hite sold 100,000 shares of the company's stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $56.52, for a total transaction of $5,652,000.00. Following the completion of the sale, the executive vice president owned 459,399 shares of the company's stock, valued at $25,965,231.48. This represents a 17.88% decrease in their ownership of the stock. 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, EVP Marshall Urist sold 9,099 shares of the company's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $55.88, for a total transaction of $508,452.12. 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 362,596 shares of company stock worth $19,992,538. 18.84% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Royalty Pharma

A number of institutional investors have recently bought and sold shares of RPRX. Phillips Wealth Planners LLC increased its holdings in shares of Royalty Pharma by 1.9% in the fourth quarter. Phillips Wealth Planners LLC now owns 13,113 shares of the biopharmaceutical company's stock valued at $521,000 after purchasing an additional 242 shares during the period. Strs Ohio raised its stake in shares of Royalty Pharma by 2.8% during the fourth quarter. Strs Ohio now owns 9,318 shares of the biopharmaceutical company's stock worth $360,000 after purchasing an additional 252 shares during the last quarter. Glenmede Trust Co. NA lifted its holdings in shares of Royalty Pharma by 3.4% during the first quarter. Glenmede Trust Co. NA now owns 7,812 shares of the biopharmaceutical company's stock worth $375,000 after purchasing an additional 254 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd grew its position in Royalty Pharma by 0.6% in the 4th quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 43,287 shares of the biopharmaceutical company's stock valued at $1,673,000 after buying an additional 255 shares during the last quarter. Finally, Cary Street Partners Financial LLC increased its stake in Royalty Pharma by 1.1% in the 4th quarter. Cary Street Partners Financial LLC now owns 24,405 shares of the biopharmaceutical company's stock valued at $943,000 after buying an additional 260 shares during the period. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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