Royalty Pharma (NASDAQ:RPRX) Shares Gap Down – Should You Sell?

Royalty Pharma PLC (NASDAQ:RPRX)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $63.96, but opened at $59.21. Royalty Pharma shares last traded at $60.0940, with a volume of 1,228,398 shares traded.

Analysts Set New Price Targets

RPRX has been the subject of a number of analyst reports. Wall Street Zen downgraded Royalty Pharma from a “strong-buy” rating to a “buy” rating in a research report on Sunday, August 30th. The Goldman Sachs Group reiterated a “buy” rating and issued a $66.00 target price on shares of Royalty Pharma in a report on Thursday, August 6th. Bank of America reissued a “buy” rating on shares of Royalty Pharma in a research report on Wednesday, August 5th. JPMorgan Chase & Co. boosted their price target on shares of Royalty Pharma from $58.00 to $62.00 and gave the stock an “overweight” rating in a research report on Friday, August 7th. Finally, Morgan Stanley reiterated an “overweight” rating and set a $65.00 price objective on shares of Royalty Pharma in a research report on Thursday, August 6th. Eight investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $61.29.

Royalty Pharma Price Performance

The company has a market cap of $34.84 billion, a price-to-earnings ratio of 41.79, a P/E/G ratio of 1.41 and a beta of 0.44. The stock’s 50-day moving average is $59.30 and its 200-day moving average is $53.49. The company has a current ratio of 2.80, a quick ratio of 2.80 and a debt-to-equity ratio of 0.88.

Royalty Pharma (NASDAQ:RPRX) last issued its earnings results on Wednesday, August 5th. The biopharmaceutical company reported $1.32 earnings per share for the quarter, topping analysts’ consensus estimates of $1.27 by $0.05. Royalty Pharma had a return on equity of 30.01% and a net margin of 32.14%.The company had revenue of $674.14 million for the quarter, compared to analyst estimates of $758.93 million. On average, analysts anticipate that Royalty Pharma PLC will post 5.31 earnings per share for the current fiscal year.

Royalty Pharma Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Friday, August 14th will be issued a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Friday, August 14th. Royalty Pharma’s dividend payout ratio (DPR) is currently 64.83%.

Insiders Place Their Bets

In other Royalty Pharma news, EVP Christopher Hite sold 150,000 shares of the business’s stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $54.40, for a total value of $8,160,000.00. Following the transaction, the executive vice president owned 559,399 shares of the company’s stock, valued at approximately $30,431,305.60. The trade was a 21.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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, EVP Marshall Urist sold 9,099 shares of the company’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $55.88, for a total value of $508,452.12. 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 a total of 398,197 shares of company stock worth $22,513,280 over the last ninety days. Insiders own 18.84% of the company’s stock.

Hedge Funds Weigh In On Royalty Pharma

Several institutional investors have recently added to or reduced their stakes in the stock. California State Teachers Retirement System grew its position in shares of Royalty Pharma by 5,065.0% in the 2nd quarter. California State Teachers Retirement System now owns 39,204,424 shares of the biopharmaceutical company’s stock worth $2,198,192,000 after buying an additional 38,445,382 shares during the period. Morgan Stanley lifted its position in Royalty Pharma by 25.2% in the 4th quarter. Morgan Stanley now owns 55,274,069 shares of the biopharmaceutical company’s stock valued at $2,135,790,000 after acquiring an additional 11,110,115 shares in the last quarter. Capital International Investors lifted its holdings in shares of Royalty Pharma by 14.3% during the fourth quarter. Capital International Investors now owns 31,104,309 shares of the biopharmaceutical company’s stock valued at $1,201,870,000 after purchasing an additional 3,891,615 shares in the last quarter. Norges Bank bought a new position in Royalty Pharma during the 4th quarter valued at about $131,923,000. Finally, Qube Research & Technologies Ltd boosted its holdings in shares of Royalty Pharma by 737.3% during the 3rd quarter. Qube Research & Technologies Ltd now owns 2,481,771 shares of the biopharmaceutical company’s stock valued at $87,557,000 after acquiring an additional 2,185,366 shares during the last quarter. Institutional investors own 54.35% of the company’s stock.

Royalty Pharma Company Profile

Royalty Pharma plc is a biopharmaceutical royalty company that provides funding to life sciences companies in exchange for rights to receive future royalty payments from commercialized or late-stage therapies. Rather than developing and marketing medicines itself, the company invests in pharmaceutical and biotechnology innovations and seeks to generate income from the resulting royalty streams.

Its portfolio is linked to a range of therapies across areas including oncology, immunology, neuroscience, rare diseases and other specialty markets.