Royalty Pharma PLC (NASDAQ:RPRX) Receives Average Recommendation of “Buy” from Analysts

Royalty Pharma PLC (NASDAQ:RPRX) has earned a consensus rating of “Buy” from the seven research firms that are presently covering the company, MarketBeat Ratings reports. Seven analysts have rated the stock with a buy recommendation. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $53.7143.

A number of analysts have recently weighed in on the stock. Weiss Ratings cut shares of Royalty Pharma from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, May 15th. Morgan Stanley boosted their target price on shares of Royalty Pharma from $61.00 to $63.00 and gave the stock an “overweight” rating in a research report on Friday, April 10th. Citigroup upped their price target on shares of Royalty Pharma from $50.00 to $66.00 and gave the company a “buy” rating in a report on Thursday, May 7th. UBS Group lifted their price objective on Royalty Pharma from $51.00 to $57.00 and gave the stock a “buy” rating in a research note on Tuesday, April 21st. Finally, Wall Street Zen raised Royalty Pharma from a “buy” rating to a “strong-buy” rating in a research report on Saturday, May 9th.

Royalty Pharma Stock Performance

NASDAQ RPRX remained flat at $57.77 during trading on Friday. The company’s stock had a trading volume of 3,244,248 shares, compared to its average volume of 3,604,242. Royalty Pharma has a one year low of $34.08 and a one year high of $57.80. The business’s 50 day simple moving average is $53.56 and its two-hundred day simple moving average is $47.23. The company has a debt-to-equity ratio of 0.86, a current ratio of 2.66 and a quick ratio of 2.66. The company has a market cap of $33.27 billion, a P/E ratio of 39.30, a P/E/G ratio of 1.59 and a beta of 0.43.

Royalty Pharma (NASDAQ:RPRX) last released its quarterly earnings results on Wednesday, May 6th. The biopharmaceutical company reported $1.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.22 by $0.08. Royalty Pharma had a return on equity of 29.25% and a net margin of 33.88%.The company had revenue of $630.58 million during the quarter, compared to the consensus estimate of $881.69 million. Equities research analysts predict that Royalty Pharma will post 5.05 EPS for the current fiscal year.

Royalty Pharma Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 15th were paid a dividend of $0.235 per share. This represents a $0.94 annualized dividend and a yield of 1.6%. The ex-dividend date was Friday, May 15th. Royalty Pharma’s dividend payout ratio is presently 63.95%.

Insider Transactions at Royalty Pharma

In other news, CFO Terrance P. Coyne sold 64,399 shares of the business’s stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $53.98, for a total transaction of $3,476,258.02. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Marshall Urist sold 13,684 shares of the company’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $53.06, for a total value of $726,073.04. Following the completion of the transaction, the executive vice president owned 31,881 shares of the company’s stock, valued at $1,691,605.86. The trade was a 30.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 427,800 shares of company stock worth $23,333,723. Insiders own 18.84% of the company’s stock.

Institutional Investors Weigh In On Royalty Pharma

Several institutional investors and hedge funds have recently bought and sold shares of the business. Eastern Bank raised its stake in shares of Royalty Pharma by 5.4% in the 2nd quarter. Eastern Bank now owns 694,925 shares of the biopharmaceutical company’s stock valued at $38,964,000 after buying an additional 35,547 shares in the last quarter. Carmignac Gestion bought a new position in shares of Royalty Pharma during the 1st quarter worth about $30,279,000. NewEdge Advisors LLC acquired a new stake in shares of Royalty Pharma during the 1st quarter valued at about $207,000. Glenmede Trust Co. NA increased its stake in Royalty Pharma by 3.4% in the first quarter. Glenmede Trust Co. NA now owns 7,812 shares of the biopharmaceutical company’s stock valued at $375,000 after acquiring an additional 254 shares during the period. Finally, Vestor Capital LLC raised its position in Royalty Pharma by 597.4% in the first quarter. Vestor Capital LLC now owns 83,688 shares of the biopharmaceutical company’s stock worth $4,014,000 after purchasing an additional 71,688 shares in the last quarter. Institutional investors own 54.35% of the company’s stock.

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.