Royalty Pharma PLC (NASDAQ:RPRX) Receives Consensus Rating of “Buy” from Brokerages

Shares of Royalty Pharma PLC (NASDAQ:RPRX) have been given a consensus rating of “Buy” by the six analysts that are covering the firm, MarketBeat Ratings reports. Six research analysts have rated the stock with a buy rating. The average twelve-month target price among brokers that have covered the stock in the last year is $48.6667.

A number of analysts have commented on the stock. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Royalty Pharma in a report on Thursday, February 12th. Wall Street Zen cut Royalty Pharma from a “strong-buy” rating to a “buy” rating in a research note on Saturday, February 14th. Morgan Stanley reissued an “overweight” rating and issued a $61.00 target price on shares of Royalty Pharma in a research note on Thursday, February 12th. Leerink Partners set a $45.00 target price on Royalty Pharma in a research report on Thursday, December 11th. Finally, Weiss Ratings raised Royalty Pharma from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, February 12th.

Royalty Pharma Stock Performance

Shares of NASDAQ:RPRX opened at $47.05 on Monday. The company has a current ratio of 2.40, a quick ratio of 2.40 and a debt-to-equity ratio of 0.88. Royalty Pharma has a 1-year low of $29.66 and a 1-year high of $46.78. The stock has a market capitalization of $27.14 billion, a P/E ratio of 34.86 and a beta of 0.40. The business has a 50-day moving average price of $41.79 and a two-hundred day moving average price of $38.87.

Royalty Pharma (NASDAQ:RPRX) last issued its earnings results on Wednesday, February 11th. The biopharmaceutical company reported $1.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.33 by $0.13. The company had revenue of $621.99 million for the quarter, compared to analyst estimates of $839.97 million. Royalty Pharma had a net margin of 32.38% and a return on equity of 28.21%. Equities analysts predict that Royalty Pharma will post 4.49 earnings per share for the current year.

Royalty Pharma Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Friday, February 20th will be issued a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 2.0%. This is a boost from Royalty Pharma’s previous quarterly dividend of $0.22. The ex-dividend date is Friday, February 20th. Royalty Pharma’s dividend payout ratio (DPR) is 69.63%.

Insider Transactions at Royalty Pharma

In other Royalty Pharma news, CFO Terrance P. Coyne sold 114,954 shares of the business’s stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $42.84, for a total value of $4,924,629.36. Following the completion of the transaction, the chief financial officer directly owned 23,972 shares of the company’s stock, valued at approximately $1,026,960.48. The trade was a 82.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Marshall Urist sold 23,334 shares of the stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $39.15, for a total value of $913,526.10. Following the completion of the sale, the executive vice president owned 160,000 shares of the company’s stock, valued at $6,264,000. This trade represents a 12.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 853,863 shares of company stock valued at $34,236,880 over the last three months. 18.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Royalty Pharma

Institutional investors and hedge funds have recently modified their holdings of the business. LM Advisors LLC acquired a new stake in Royalty Pharma during the 4th quarter worth approximately $26,000. Lloyd Advisory Services LLC. acquired a new position in shares of Royalty Pharma in the fourth quarter valued at approximately $30,000. Smartleaf Asset Management LLC increased its position in shares of Royalty Pharma by 868.1% during the third quarter. Smartleaf Asset Management LLC now owns 881 shares of the biopharmaceutical company’s stock worth $31,000 after acquiring an additional 790 shares in the last quarter. Private Trust Co. NA raised its holdings 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 acquiring an additional 288 shares during the period. Finally, Financial Consulate Inc. acquired a new stake in shares of Royalty Pharma during the third quarter worth $35,000. 54.35% of the stock is currently owned by institutional investors and hedge funds.

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.