Royalty Pharma (NASDAQ:RPRX) Sets New 12-Month High – Time to Buy?

Shares of Royalty Pharma PLC (NASDAQ:RPRX) reached a new 52-week high on Wednesday . The company traded as high as $60.08 and last traded at $59.97, with a volume of 3138526 shares trading hands. The stock had previously closed at $58.73.

Wall Street Analysts Forecast Growth

RPRX has been the topic of several analyst reports. Wall Street Zen raised Royalty Pharma from a “buy” rating to a “strong-buy” rating in a report on Saturday, May 9th. TD Cowen raised their price target on Royalty Pharma from $50.00 to $65.00 and gave the company a “buy” rating in a report on Monday, July 13th. JPMorgan Chase & Co. lifted their price target on Royalty Pharma from $50.00 to $58.00 and gave the stock an “overweight” rating in a research report on Thursday, May 7th. 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. Finally, Morgan Stanley increased their price objective on shares of Royalty Pharma from $61.00 to $63.00 and gave the company an “overweight” rating in a research report on Friday, April 10th. Seven investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock has an average rating of “Buy” and an average price target of $56.57.

Royalty Pharma Price Performance

The firm has a market capitalization of $34.53 billion, a P/E ratio of 40.80, a PEG ratio of 10.40 and a beta of 0.43. The company has a debt-to-equity ratio of 0.86, a quick ratio of 2.66 and a current ratio of 2.66. The firm has a 50-day moving average of $55.88 and a 200-day moving average of $49.54.

Royalty Pharma (NASDAQ:RPRX) last posted its earnings results on Wednesday, May 6th. The biopharmaceutical company reported $1.30 EPS for the quarter, topping analysts’ consensus estimates of $1.22 by $0.08. Royalty Pharma had a return on equity of 29.25% and a net margin of 33.88%.The business had revenue of $630.58 million during the quarter, compared to analyst estimates of $881.69 million. As a group, analysts predict that Royalty Pharma PLC will post 5.18 EPS for the current year.

Royalty Pharma Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Friday, August 14th will be given a dividend of $0.235 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $0.94 annualized dividend and a dividend yield of 1.6%. Royalty Pharma’s dividend payout ratio (DPR) is 63.95%.

Insiders Place Their Bets

In other Royalty Pharma news, CFO Terrance P. Coyne sold 64,399 shares of the company’s stock in a transaction dated Tuesday, May 26th. The shares were 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 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 firm’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $55.88, for a total transaction 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 393,009 shares of company stock valued at $21,601,827 over the last quarter. Corporate insiders own 18.84% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada lifted its holdings in shares of Royalty Pharma by 367.7% during the 1st quarter. Royal Bank of Canada now owns 203,760 shares of the biopharmaceutical company’s stock valued at $6,342,000 after buying an additional 160,191 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Royalty Pharma by 20.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 79,990 shares of the biopharmaceutical company’s stock valued at $2,490,000 after purchasing an additional 13,489 shares during the last quarter. Focus Partners Wealth bought a new position in shares of Royalty Pharma in the 1st quarter worth approximately $264,000. Intech Investment Management LLC lifted its stake in shares of Royalty Pharma by 41.0% in the 1st quarter. Intech Investment Management LLC now owns 47,992 shares of the biopharmaceutical company’s stock worth $1,494,000 after purchasing an additional 13,951 shares during the period. Finally, Invesco Ltd. boosted its holdings in shares of Royalty Pharma by 21.4% in the second quarter. Invesco Ltd. now owns 1,559,378 shares of the biopharmaceutical company’s stock worth $56,184,000 after buying an additional 274,960 shares during the last quarter. Institutional investors own 54.35% of the company’s stock.

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.