Royalty Pharma (NASDAQ:RPRX) Sets New 1-Year High - Should You Buy?

Royalty Pharma PLC (NASDAQ:RPRX - Get Free Report)'s share price reached a new 52-week high on Monday . The stock traded as high as $35.43 and last traded at $35.36, with a volume of 753901 shares changing hands. The stock had previously closed at $34.86.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on RPRX. Citigroup reissued a "buy" rating on shares of Royalty Pharma in a research report on Friday, March 28th. Wall Street Zen upgraded Royalty Pharma from a "hold" rating to a "buy" rating in a report on Saturday. Finally, Morgan Stanley started coverage on Royalty Pharma in a research note on Friday, May 16th. They set an "overweight" rating and a $51.00 target price on the stock. Four analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, Royalty Pharma presently has a consensus rating of "Buy" and an average price target of $47.33.

Royalty Pharma Stock Performance

The stock has a market capitalization of $19.88 billion, a PE ratio of 19.11, a P/E/G ratio of 1.79 and a beta of 0.48. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.56 and a current ratio of 1.56. The firm's 50 day moving average is $33.14 and its two-hundred day moving average is $31.28.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The biopharmaceutical company reported $1.06 EPS for the quarter, topping the consensus estimate of $0.99 by $0.07. The business had revenue of $839.00 million during the quarter, compared to the consensus estimate of $724.69 million. Royalty Pharma had a net margin of 48.23% and a return on equity of 24.71%. As a group, research analysts predict that Royalty Pharma PLC will post 4.49 earnings per share for the current year.

Royalty Pharma Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 10th. Shareholders of record on Friday, May 16th were issued a dividend of $0.22 per share. The ex-dividend date of this dividend was Friday, May 16th. This represents a $0.88 annualized dividend and a yield of 2.49%. Royalty Pharma's dividend payout ratio (DPR) is 47.57%.

Hedge Funds Weigh In On Royalty Pharma

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Adage Capital Partners GP L.L.C. lifted its stake in Royalty Pharma by 42.6% in the fourth quarter. Adage Capital Partners GP L.L.C. now owns 16,968,321 shares of the biopharmaceutical company's stock worth $432,862,000 after acquiring an additional 5,069,127 shares during the last quarter. Norges Bank purchased a new stake in shares of Royalty Pharma during the 4th quarter worth $124,498,000. Victory Capital Management Inc. increased its holdings in Royalty Pharma by 270.4% in the first quarter. Victory Capital Management Inc. now owns 3,623,134 shares of the biopharmaceutical company's stock valued at $112,788,000 after buying an additional 2,644,923 shares during the last quarter. BNP Paribas Financial Markets acquired a new stake in Royalty Pharma in the fourth quarter valued at $41,959,000. Finally, AQR Capital Management LLC raised its stake in Royalty Pharma by 187.0% in the fourth quarter. AQR Capital Management LLC now owns 1,903,676 shares of the biopharmaceutical company's stock valued at $48,563,000 after buying an additional 1,240,384 shares in the last quarter. 54.35% of the stock is owned by institutional investors and hedge funds.

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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