Royalty Pharma PLC (NASDAQ:RPRX) Receives Consensus Recommendation of "Buy" from Analysts

Key Points

• Analysts have a consensus "Buy" rating on Royalty Pharma from six brokerages with an average 12‑month target of $49.00 (UBS issued a $57 target and several firms reaffirmed or upgraded their ratings).
• Company insiders have been net sellers recently: CFO Terrance P. Coyne sold 114,954 shares and insiders sold a total of 387,914 shares worth about $16.88 million over the last three months, though insiders still own 18.84% of the stock.
• Recent results showed an EPS beat (Q: $1.46 vs. $1.33 estimate) but revenue missed ($622M vs. $840M est.), and the company announced a quarterly dividend of $0.235 ($0.94 annual, ~1.9% yield; DPR ~69.6%).

Royalty Pharma PLC (NASDAQ:RPRX - Get Free Report) has been assigned a consensus rating of "Buy" from the six brokerages that are presently covering the company, Marketbeat.com reports. Six research analysts have rated the stock with a buy recommendation. The average 12 month target price among brokers that have covered the stock in the last year is $49.00.

Several equities analysts have weighed in on RPRX shares. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Royalty Pharma in a research report on Thursday, February 12th. UBS Group reissued a "buy" rating and issued a $57.00 price objective on shares of Royalty Pharma in a research note on Tuesday. Wall Street Zen cut shares of Royalty Pharma from a "strong-buy" rating to a "buy" rating in a report on Saturday, February 14th. TD Cowen reaffirmed a "buy" rating on shares of Royalty Pharma in a research note on Friday, February 27th. Finally, Weiss Ratings upgraded shares of Royalty Pharma from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, February 12th.

Insider Buying and Selling at Royalty Pharma

In other Royalty Pharma news, CFO Terrance P. Coyne sold 114,954 shares of the company's stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $42.84, for a total transaction of $4,924,629.36. Following the sale, the chief financial officer owned 23,972 shares in the company, valued at $1,026,960.48. This represents a 82.74% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Marshall Urist sold 20,000 shares of the stock in a transaction dated Friday, January 30th. The shares were sold at an average price of $41.09, for a total value of $821,800.00. The SEC filing for this sale provides additional information. Insiders have sold a total of 387,914 shares of company stock valued at $16,879,974 over the last three months. 18.84% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. LM Advisors LLC purchased a new stake in shares of Royalty Pharma in the 4th quarter valued at approximately $26,000. Lloyd Advisory Services LLC. acquired a new stake in shares of Royalty Pharma in the 4th quarter valued at $30,000. Smartleaf Asset Management LLC lifted its position in shares of Royalty Pharma by 868.1% during the 3rd quarter. Smartleaf Asset Management LLC now owns 881 shares of the biopharmaceutical company's stock worth $31,000 after purchasing an additional 790 shares during the last quarter. Private Trust Co. NA grew its stake in shares of Royalty Pharma by 52.9% during the fourth quarter. Private Trust Co. NA now owns 832 shares of the biopharmaceutical company's stock worth $32,000 after purchasing an additional 288 shares in the last quarter. Finally, Blue Trust Inc. grew its stake in shares of Royalty Pharma by 173.4% during the first quarter. Blue Trust Inc. now owns 689 shares of the biopharmaceutical company's stock worth $33,000 after purchasing an additional 437 shares in the last quarter. Hedge funds and other institutional investors own 54.35% of the company's stock.

Royalty Pharma Stock Down 1.4%

Shares of NASDAQ RPRX opened at $49.30 on Tuesday. The company has a quick ratio of 2.40, a current ratio of 2.40 and a debt-to-equity ratio of 0.88. The business's 50 day moving average is $46.56 and its two-hundred day moving average is $41.69. Royalty Pharma has a 52-week low of $31.58 and a 52-week high of $50.08. The firm has a market cap of $28.44 billion, a price-to-earnings ratio of 36.52, a PEG ratio of 3.19 and a beta of 0.39.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last released its quarterly earnings results on Wednesday, February 11th. The biopharmaceutical company reported $1.46 EPS for the quarter, topping the consensus estimate of $1.33 by $0.13. The business had revenue of $621.99 million during the quarter, compared to analyst estimates of $839.97 million. Royalty Pharma had a return on equity of 28.21% and a net margin of 32.38%. Research analysts predict that Royalty Pharma will post 5.08 EPS for the current year.

Royalty Pharma Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 15th will be issued a $0.235 dividend. The ex-dividend date is Friday, May 15th. This represents a $0.94 dividend on an annualized basis and a yield of 1.9%. Royalty Pharma's dividend payout ratio (DPR) is 69.63%.

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.

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