Royalty Pharma (NASDAQ:RPRX) Reaches New 1-Year High – Still a Buy?

Royalty Pharma PLC (NASDAQ:RPRX) hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $62.20 and last traded at $62.0140, with a volume of 631154 shares traded. The stock had previously closed at $61.33.

Analyst Ratings Changes

A number of equities research analysts have commented on RPRX shares. Morgan Stanley reissued an “overweight” rating and set a $65.00 price objective on shares of Royalty Pharma in a report on Thursday, August 6th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Royalty Pharma in a research report on Wednesday, August 12th. Wall Street Zen raised shares of Royalty Pharma from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 22nd. TD Cowen raised their price target on shares of Royalty Pharma from $50.00 to $65.00 and gave the company a “buy” rating in a report on Monday, July 13th. Finally, Citigroup upped their price objective on Royalty Pharma from $50.00 to $66.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Eight analysts have rated the stock with a Buy rating, According to MarketBeat, Royalty Pharma currently has an average rating of “Buy” and an average target price of $60.86.

Royalty Pharma Trading Down 0.4%

The business’s 50-day moving average price is $57.82 and its two-hundred day moving average price is $52.26. The company has a market capitalization of $35.54 billion, a P/E ratio of 42.62, a PEG ratio of 1.45 and a beta of 0.43. The company has a debt-to-equity ratio of 0.88, a current ratio of 2.80 and a quick ratio of 2.80.

Royalty Pharma (NASDAQ:RPRX) last released its quarterly earnings data 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%. As a group, analysts forecast that Royalty Pharma PLC will post 5.3 EPS for the current fiscal year.

Royalty Pharma Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Friday, August 14th will be issued a $0.235 dividend. This represents a $0.94 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Friday, August 14th. Royalty Pharma’s dividend payout ratio is 64.83%.

Insider Transactions at Royalty Pharma

In other news, EVP Marshall Urist sold 9,099 shares of Royalty Pharma stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $55.88, for a total transaction of $508,452.12. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher Hite sold 100,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $59.97, for a total value of $5,997,000.00. Following the completion of the transaction, the executive vice president owned 370,401 shares of the company’s stock, valued at $22,212,947.97. This represents a 21.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 398,197 shares of company stock worth $22,513,280. 18.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Royalty Pharma

Several institutional investors have recently added to or reduced their stakes in RPRX. LM Advisors LLC bought a new position in Royalty Pharma during the 4th quarter worth about $26,000. Blue Trust Inc. raised its position in 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 buying an additional 437 shares during the last quarter. Lloyd Advisory Services LLC. bought a new stake in Royalty Pharma in the 4th quarter valued at approximately $30,000. CoreCap Advisors LLC grew its stake 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 acquiring an additional 413 shares in the last quarter. Finally, Bessemer Group Inc. lifted its position in shares of Royalty Pharma by 34.7% in the first quarter. Bessemer Group Inc. now owns 1,094 shares of the biopharmaceutical company’s stock worth $53,000 after purchasing an additional 282 shares in the last quarter. 54.35% of the stock is owned by 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.