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

Key Points

• Royalty Pharma's stock reached a new 52-week high, trading at $37.00 before closing at $36.49, accompanied by a trading volume of 259 shares.
• Wall Street analysts express mixed views, with one downgrading the stock to "hold" while others raised target prices, indicating a consensus rating of "Buy" with an average price target of $49.00.
• The company reported $1.06 EPS in its latest earnings, surpassing expectations and demonstrating a strong revenue of $839 million for the quarter.
• Royalty Pharma announced a quarterly dividend of $0.22 per share, resulting in an annualized dividend yield of 2.41%.

Shares of Royalty Pharma PLC (NASDAQ:RPRX - Get Free Report) reached a new 52-week high during trading on Friday . The company traded as high as $37.00 and last traded at $36.49, with a volume of 259 shares trading hands. The stock had previously closed at $36.59.

Wall Street Analysts Forecast Growth

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

Royalty Pharma Stock Up 1.0%

The company has a quick ratio of 1.56, a current ratio of 1.56 and a debt-to-equity ratio of 0.68. The firm has a 50 day moving average of $34.86 and a two-hundred day moving average of $33.18. The firm has a market capitalization of $21.05 billion, a price-to-earnings ratio of 20.23, a price-to-earnings-growth ratio of 2.44 and a beta of 0.50.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last posted its earnings results on Thursday, May 8th. The biopharmaceutical company reported $1.06 EPS for the quarter, topping analysts' consensus estimates of $0.99 by $0.07. Royalty Pharma had a net margin of 48.23% and a return on equity of 24.71%. The firm had revenue of $839.00 million during the quarter, compared to analysts' expectations of $724.69 million. As a group, sell-side 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. Stockholders of record on Friday, August 15th will be issued a dividend of $0.22 per share. The ex-dividend date is Friday, August 15th. This represents a $0.88 annualized dividend and a dividend yield of 2.35%. Royalty Pharma's dividend payout ratio (DPR) is presently 47.57%.

Hedge Funds Weigh In On Royalty Pharma

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Augustine Asset Management Inc. boosted its stake in shares of Royalty Pharma by 4.4% during the second quarter. Augustine Asset Management Inc. now owns 6,722 shares of the biopharmaceutical company's stock valued at $242,000 after purchasing an additional 283 shares in the last quarter. Applied Finance Capital Management LLC boosted its position in Royalty Pharma by 3.0% during the 1st quarter. Applied Finance Capital Management LLC now owns 11,265 shares of the biopharmaceutical company's stock worth $351,000 after buying an additional 329 shares during the period. Fifth Third Bancorp grew its holdings in Royalty Pharma by 19.2% during the 2nd quarter. Fifth Third Bancorp now owns 2,137 shares of the biopharmaceutical company's stock worth $77,000 after acquiring an additional 344 shares during the last quarter. Nissay Asset Management Corp Japan ADV increased its position in Royalty Pharma by 0.7% in the 4th quarter. Nissay Asset Management Corp Japan ADV now owns 48,481 shares of the biopharmaceutical company's stock valued at $1,238,000 after acquiring an additional 349 shares during the period. Finally, National Bank of Canada FI raised its stake in shares of Royalty Pharma by 21.8% during the fourth quarter. National Bank of Canada FI now owns 2,074 shares of the biopharmaceutical company's stock valued at $53,000 after acquiring an additional 371 shares during the last quarter. Institutional investors and hedge funds own 54.35% of the company's stock.

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.