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

Key Points

• Royalty Pharma (NASDAQ:RPRX) shares hit a new 52-week high at $37.94, closing at $37.52 with a trading volume of 714 shares.
• Analysts have mixed ratings on Royalty Pharma, with price targets revised upwards from $40.00 to $54.00, indicating general optimism, while one firm downgraded its rating to "hold."
• The company reported strong earnings, with an EPS of $1.06 compared to a consensus estimate of $0.99, and declared a quarterly dividend of $0.22 per share scheduled for September 10th.

Shares of Royalty Pharma PLC (NASDAQ:RPRX - Get Free Report) reached a new 52-week high during trading on Monday . The company traded as high as $37.94 and last traded at $37.52, with a volume of 714 shares traded. The stock had previously closed at $37.11.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on RPRX shares. Morgan Stanley lifted their price target on Royalty Pharma from $51.00 to $54.00 and gave the company an "overweight" rating in a report on Thursday, July 10th. Citigroup increased their price target on Royalty Pharma from $40.00 to $42.00 and gave the company a "buy" rating in a research note on Tuesday, July 22nd. Finally, Wall Street Zen cut Royalty Pharma from a "buy" rating to a "hold" rating in a research report on Sunday, June 29th. One investment analyst has rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $49.00.

Royalty Pharma Trading Down 1.7%

The business's 50-day moving average is $35.51 and its 200 day moving average is $33.47. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.56 and a quick ratio of 1.56. The firm has a market capitalization of $20.52 billion, a P/E ratio of 19.71, a price-to-earnings-growth ratio of 2.52 and a beta of 0.55.

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

Royalty Pharma Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 10th. Shareholders of record on Friday, August 15th will be issued a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Friday, August 15th. Royalty Pharma's dividend payout ratio (DPR) is presently 47.57%.

Hedge Funds Weigh In On Royalty Pharma

Several institutional investors have recently made changes to their positions in the stock. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Royalty Pharma during the second quarter valued at approximately $626,000. Mitsubishi UFJ Asset Management Co. Ltd. increased its position in shares of Royalty Pharma by 0.4% in the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 312,743 shares of the biopharmaceutical company's stock worth $11,268,000 after purchasing an additional 1,154 shares during the last quarter. Aviva PLC boosted its stake in Royalty Pharma by 6.6% in the second quarter. Aviva PLC now owns 280,579 shares of the biopharmaceutical company's stock worth $10,109,000 after buying an additional 17,377 shares in the last quarter. AGF Management Ltd. boosted its holdings in Royalty Pharma by 15.8% during the 2nd quarter. AGF Management Ltd. now owns 93,212 shares of the biopharmaceutical company's stock valued at $3,358,000 after acquiring an additional 12,732 shares during the period. Finally, Metis Global Partners LLC raised its stake in shares of Royalty Pharma by 83.9% during the second quarter. Metis Global Partners LLC now owns 67,880 shares of the biopharmaceutical company's stock valued at $2,446,000 after acquiring an additional 30,959 shares during the last quarter. Institutional investors and hedge funds own 54.35% of the company's stock.

About Royalty Pharma

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.