Wall Street Zen Upgrades Royalty Pharma (NASDAQ:RPRX) to "Strong-Buy"

Key Points

• Wall Street Zen upgraded Royalty Pharma to “strong-buy” from “buy,” while the broader analyst consensus remains “Buy” with an average price target of $60.86.
• Royalty Pharma shares opened at $61.31, near their 52-week high of $62.13, and have gained 1.2%; the company recently reported quarterly EPS of $1.32, beating estimates by $0.05, although revenue fell short of expectations.
• Insiders sold 462,596 shares worth approximately $26.0 million over the past 90 days, while hedge funds and other institutional investors own 54.35% of the company.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a note issued to investors on Saturday.

RPRX has been the subject of a number of other research reports. Morgan Stanley reiterated an "overweight" rating and issued a $65.00 price objective on shares of Royalty Pharma in a report on Thursday, August 6th. The Goldman Sachs Group restated a "buy" rating and set a $66.00 target price on shares of Royalty Pharma in a report on Thursday, August 6th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Royalty Pharma in a report on Wednesday, August 12th. JPMorgan Chase & Co. increased their price target on Royalty Pharma from $58.00 to $62.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Finally, TD Cowen lifted their price objective on Royalty Pharma from $50.00 to $65.00 and gave the stock a "buy" rating in a research report on Monday, July 13th. Eight investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus target price of $60.86.

Royalty Pharma Trading Up 1.2%

Shares of RPRX opened at $61.31 on Friday. Royalty Pharma has a 52-week low of $34.08 and a 52-week high of $62.13. The stock has a market cap of $35.25 billion, a PE ratio of 42.28, a price-to-earnings-growth ratio of 1.41 and a beta of 0.43. The firm's fifty day moving average is $57.36 and its two-hundred day moving average is $51.81. The company has a quick ratio of 2.80, a current ratio of 2.80 and a debt-to-equity ratio of 0.88.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last issued its earnings results on Wednesday, August 5th. The biopharmaceutical company reported $1.32 EPS for the quarter, beating analysts' consensus estimates of $1.27 by $0.05. The business had revenue of $674.14 million during the quarter, compared to analysts' expectations of $758.93 million. Royalty Pharma had a net margin of 32.14% and a return on equity of 30.01%. Research analysts forecast that Royalty Pharma will post 5.3 earnings per share for the current fiscal year.

Insider Buying and Selling at Royalty Pharma

In other news, EVP Marshall Urist sold 9,099 shares of the firm's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $55.88, for a total transaction of $508,452.12. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Terrance P. Coyne sold 64,399 shares of Royalty Pharma stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $53.98, for a total transaction of $3,476,258.02. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 462,596 shares of company stock worth $25,989,538 in the last ninety days. 18.84% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. LM Advisors LLC purchased a new stake in Royalty Pharma in the fourth quarter valued at $26,000. Blue Trust Inc. lifted its stake in shares of Royalty Pharma by 173.4% in the 1st quarter. Blue Trust Inc. now owns 689 shares of the biopharmaceutical company's stock valued at $33,000 after purchasing an additional 437 shares during the last quarter. Lloyd Advisory Services LLC. purchased a new position in shares of Royalty Pharma during the 4th quarter worth $30,000. CoreCap Advisors LLC increased its position in shares of Royalty Pharma by 89.2% during the 2nd quarter. CoreCap Advisors LLC now owns 876 shares of the biopharmaceutical company's stock worth $49,000 after purchasing an additional 413 shares during the last quarter. Finally, Bessemer Group Inc. increased its position in shares of Royalty Pharma by 34.7% during the 1st quarter. Bessemer Group Inc. now owns 1,094 shares of the biopharmaceutical company's stock worth $53,000 after purchasing an additional 282 shares during the last quarter. 54.35% of the stock is currently owned by hedge funds and other institutional investors.

Royalty Pharma Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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