Royalty Pharma (NASDAQ:RPRX) Raised to Buy at Wall Street Zen

Key Points

• Royalty Pharma has been upgraded from a "hold" to a "buy" rating by Wall Street Zen, indicating increased confidence in the stock.
• Other analysts, including Citigroup and Morgan Stanley, have also raised their target prices for Royalty Pharma, suggesting a positive outlook in the market.
• The company reported a quarterly EPS of $1.14, surpassing expectations, although revenue fell short of forecasts, with a reported total of $578.67 million.

Wall Street Zen upgraded shares of Royalty Pharma (NASDAQ:RPRX - Free Report) from a hold rating to a buy rating in a report issued on Saturday.

Several other research analysts have also weighed in on RPRX. Citigroup boosted their price objective on shares of Royalty Pharma from $40.00 to $42.00 and gave the stock a "buy" rating in a research note on Tuesday, July 22nd. Morgan Stanley boosted their price objective on shares of Royalty Pharma from $51.00 to $54.00 and gave the stock an "overweight" rating in a research note on Thursday, July 10th. Four research analysts have rated the stock with a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $49.00.

Royalty Pharma Stock Up 1.9%

RPRX traded up $0.69 during trading on Friday, hitting $36.55. The company had a trading volume of 1,609,674 shares, compared to its average volume of 4,376,946. The company has a market capitalization of $20.55 billion, a PE ratio of 21.12, a PEG ratio of 2.36 and a beta of 0.55. Royalty Pharma has a one year low of $24.05 and a one year high of $38.00. The firm's 50-day moving average price is $35.80 and its 200 day moving average price is $33.66. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.74.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The biopharmaceutical company reported $1.14 EPS for the quarter, topping the consensus estimate of $1.10 by $0.04. The firm had revenue of $578.67 million for the quarter, compared to analysts' expectations of $750.06 million. Royalty Pharma had a net margin of 44.23% and a return on equity of 25.54%. As a group, equities analysts expect that Royalty Pharma will post 4.49 earnings per share for the current year.

Royalty Pharma Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 10th. Investors of record on Friday, August 15th will be paid a $0.22 dividend. The ex-dividend date is Friday, August 15th. This represents a $0.88 dividend on an annualized basis and a yield of 2.4%. Royalty Pharma's dividend payout ratio is 50.87%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of RPRX. Louisbourg Investments Inc. bought a new position in Royalty Pharma in the 1st quarter valued at approximately $28,000. MassMutual Private Wealth & Trust FSB raised its stake in shares of Royalty Pharma by 76.4% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 956 shares of the biopharmaceutical company's stock valued at $30,000 after acquiring an additional 414 shares during the last quarter. USA Financial Formulas bought a new position in shares of Royalty Pharma during the second quarter valued at $32,000. Summit Securities Group LLC bought a new position in shares of Royalty Pharma during the first quarter valued at $36,000. Finally, WPG Advisers LLC bought a new position in shares of Royalty Pharma during the first quarter valued at $39,000. 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.