Royalty Pharma (NASDAQ:RPRX) Sets New 1-Year High – Here’s Why

Royalty Pharma PLC (NASDAQ:RPRX)’s share price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $46.14 and last traded at $45.6290, with a volume of 367975 shares changing hands. The stock had previously closed at $45.19.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. The Goldman Sachs Group reissued a “buy” rating on shares of Royalty Pharma in a research note on Thursday, February 12th. Wall Street Zen lowered Royalty Pharma from a “strong-buy” rating to a “buy” rating in a report on Saturday, February 14th. Morgan Stanley restated an “overweight” rating and issued a $61.00 price target on shares of Royalty Pharma in a research report on Thursday, February 12th. Leerink Partners set a $45.00 price objective on shares of Royalty Pharma in a research report on Thursday, December 11th. Finally, TD Cowen restated a “buy” rating on shares of Royalty Pharma in a report on Thursday, December 11th. Six equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Royalty Pharma presently has a consensus rating of “Buy” and an average target price of $48.67.

Royalty Pharma Stock Down 0.4%

The stock has a market cap of $26.06 billion, a price-to-earnings ratio of 33.47 and a beta of 0.42. The company has a current ratio of 2.40, a quick ratio of 2.40 and a debt-to-equity ratio of 0.88. The firm’s 50 day moving average is $40.82 and its two-hundred day moving average is $38.45.

Royalty Pharma (NASDAQ:RPRX) last released its quarterly earnings results on Wednesday, February 11th. The biopharmaceutical company reported $1.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.33 by $0.13. The company had revenue of $621.99 million for the quarter, compared to analysts’ expectations of $839.97 million. Royalty Pharma had a net margin of 32.38% and a return on equity of 28.21%. On average, sell-side analysts predict that Royalty Pharma PLC will post 4.49 EPS for the current year.

Royalty Pharma Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Friday, February 20th will be issued a $0.235 dividend. This is a boost from Royalty Pharma’s previous quarterly dividend of $0.22. The ex-dividend date is Friday, February 20th. This represents a $0.94 annualized dividend and a yield of 2.1%. Royalty Pharma’s payout ratio is presently 65.19%.

Insiders Place Their Bets

In other news, CFO Terrance P. Coyne sold 114,954 shares of Royalty Pharma stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $42.84, for a total value of $4,924,629.36. Following the completion of the sale, the chief financial officer owned 23,972 shares of the company’s stock, valued at $1,026,960.48. The trade was a 82.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP George W. Lloyd sold 110,000 shares of the company’s stock in a transaction on Wednesday, December 3rd. The shares were sold at an average price of $39.77, for a total value of $4,374,700.00. Following the completion of the transaction, the executive vice president owned 110,000 shares of the company’s stock, valued at $4,374,700. The trade was a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 1,034,602 shares of company stock worth $41,353,043. Corporate insiders own 18.90% of the company’s stock.

Institutional Investors Weigh In On Royalty Pharma

Institutional investors have recently bought and sold shares of the stock. LM Advisors LLC purchased a new position in Royalty Pharma during the fourth quarter worth approximately $26,000. Lloyd Advisory Services LLC. acquired a new stake in shares of Royalty Pharma during the 4th quarter worth $30,000. Smartleaf Asset Management LLC raised its position in shares of Royalty Pharma by 868.1% in the 3rd quarter. Smartleaf Asset Management LLC now owns 881 shares of the biopharmaceutical company’s stock worth $31,000 after buying an additional 790 shares during the period. Private Trust Co. NA grew its position in Royalty Pharma by 52.9% during the fourth quarter. Private Trust Co. NA now owns 832 shares of the biopharmaceutical company’s stock valued at $32,000 after acquiring an additional 288 shares during the period. Finally, Financial Consulate Inc. acquired a new stake in Royalty Pharma during the third quarter worth about $35,000. 54.35% of the stock is currently owned by hedge funds and other institutional investors.

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.