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

Shares of Royalty Pharma PLC (NASDAQ:RPRX) hit a new 52-week high on Thursday . The stock traded as high as $59.44 and last traded at $59.1230, with a volume of 513102 shares traded. The stock had previously closed at $58.72.

Analyst Ratings Changes

RPRX has been the topic of a number of recent analyst reports. TD Cowen lifted their target price on Royalty Pharma from $50.00 to $65.00 and gave the company a “buy” rating in a research report on Monday, July 13th. UBS Group increased their target price on shares of Royalty Pharma from $51.00 to $57.00 and gave the stock a “buy” rating in a report on Tuesday, April 21st. Morgan Stanley raised their price target on shares of Royalty Pharma from $61.00 to $63.00 and gave the company an “overweight” rating in a research note on Friday, April 10th. Wall Street Zen raised shares of Royalty Pharma from a “buy” rating to a “strong-buy” rating in a report on Saturday, May 9th. Finally, Weiss Ratings cut shares of Royalty Pharma from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, May 15th. Seven investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $56.57.

Royalty Pharma Price Performance

The business has a 50-day moving average of $55.37 and a two-hundred day moving average of $49.00. The company has a current ratio of 2.66, a quick ratio of 2.66 and a debt-to-equity ratio of 0.86. The firm has a market cap of $34.12 billion, a P/E ratio of 40.37, a price-to-earnings-growth ratio of 10.35 and a beta of 0.43.

Royalty Pharma (NASDAQ:RPRX) last posted its earnings results on Wednesday, May 6th. The biopharmaceutical company reported $1.30 EPS for the quarter, beating the consensus estimate of $1.22 by $0.08. The firm had revenue of $630.58 million during the quarter, compared to the consensus estimate of $881.69 million. Royalty Pharma had a return on equity of 29.25% and a net margin of 33.88%. On average, sell-side analysts anticipate that Royalty Pharma PLC will post 5.18 earnings per share for the current fiscal year.

Royalty Pharma Dividend Announcement

The firm also recently announced 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 is Friday, August 14th. This represents a $0.94 annualized dividend and a yield of 1.6%. Royalty Pharma’s dividend payout ratio (DPR) is currently 63.95%.

Insider Buying and Selling at Royalty Pharma

In other news, EVP Christopher Hite sold 100,000 shares of the firm’s stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $56.52, for a total transaction of $5,652,000.00. Following the completion of the transaction, the executive vice president owned 459,399 shares of the company’s stock, valued at approximately $25,965,231.48. This trade represents a 17.88% 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. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Terrance P. Coyne sold 64,399 shares of Royalty Pharma stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $53.98, for a total transaction of $3,476,258.02. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 427,800 shares of company stock valued at $23,333,723 in the last quarter. 18.84% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of RPRX. Royal Bank of Canada lifted its stake in shares of Royalty Pharma by 367.7% in the first quarter. Royal Bank of Canada now owns 203,760 shares of the biopharmaceutical company’s stock worth $6,342,000 after acquiring an additional 160,191 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in 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 period. Focus Partners Wealth acquired a new stake in Royalty Pharma during the 1st quarter valued at approximately $264,000. Intech Investment Management LLC raised its holdings in Royalty Pharma by 41.0% during 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 last quarter. Finally, Invesco Ltd. raised its holdings in Royalty Pharma by 21.4% during the 2nd quarter. Invesco Ltd. now owns 1,559,378 shares of the biopharmaceutical company’s stock worth $56,184,000 after purchasing an additional 274,960 shares during the last quarter. 54.35% of the stock is owned by institutional investors and hedge funds.

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.