Royalty Pharma (NASDAQ:RPRX) Hits New 1-Year High After Better-Than-Expected Earnings

Royalty Pharma PLC (NASDAQ:RPRX) hit a new 52-week high during trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $45.16 and last traded at $45.0650, with a volume of 1977195 shares changing hands. The stock had previously closed at $44.21.

The biopharmaceutical company reported $1.46 earnings per share for the quarter, topping analysts’ consensus estimates of $1.33 by $0.13. The business had revenue of $621.99 million for the quarter, compared to analysts’ expectations of $839.97 million. Royalty Pharma had a return on equity of 28.21% and a net margin of 32.38%.

Royalty Pharma Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Friday, February 20th will be given a $0.235 dividend. The ex-dividend date is Friday, February 20th. This represents a $0.94 annualized dividend and a dividend yield of 2.1%. This is a boost from Royalty Pharma’s previous quarterly dividend of $0.22. Royalty Pharma’s payout ratio is presently 66.67%.

Wall Street Analyst Weigh In

Several analysts have issued reports on RPRX shares. Leerink Partners set a $45.00 price target on shares of Royalty Pharma in a report on Thursday, December 11th. Citigroup upped their target price on Royalty Pharma from $48.00 to $50.00 and gave the company a “buy” rating in a research note on Tuesday, January 27th. TD Cowen reiterated a “buy” rating on shares of Royalty Pharma in a report on Thursday, December 11th. The Goldman Sachs Group reissued a “buy” rating on shares of Royalty Pharma in a report on Thursday. Finally, Morgan Stanley restated an “overweight” rating and issued a $61.00 price objective on shares of Royalty Pharma in a research report on Thursday. Six analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company currently has an average rating of “Buy” and an average target price of $48.67.

Insiders Place Their Bets

In related news, EVP Marshall Urist sold 20,000 shares of the company’s stock in a transaction on Friday, January 30th. The stock was sold at an average price of $41.09, for a total value of $821,800.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Terrance P. Coyne sold 20,163 shares of the firm’s stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $43.29, for a total value of $872,856.27. Following the completion of the sale, the chief financial officer directly owned 22,885 shares in the company, valued at approximately $990,691.65. The trade was a 46.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 1,309,216 shares of company stock valued at $52,015,364. Company insiders own 18.90% of the company’s stock.

Hedge Funds Weigh In On Royalty Pharma

Several hedge funds and other institutional investors have recently modified their holdings of the company. Morgan Stanley raised its holdings in Royalty Pharma by 25.2% in the fourth quarter. Morgan Stanley now owns 55,274,069 shares of the biopharmaceutical company’s stock valued at $2,135,790,000 after buying an additional 11,110,115 shares during the period. Capital International Investors increased its position in shares of Royalty Pharma by 24.4% in the third quarter. Capital International Investors now owns 27,212,694 shares of the biopharmaceutical company’s stock worth $960,064,000 after acquiring an additional 5,332,074 shares in the last quarter. Norges Bank purchased a new position in shares of Royalty Pharma in the 2nd quarter valued at $181,388,000. Dorsey Asset Management LLC acquired a new position in shares of Royalty Pharma during the 3rd quarter valued at $82,924,000. Finally, Qube Research & Technologies Ltd boosted its position in Royalty Pharma by 737.3% during the 3rd quarter. Qube Research & Technologies Ltd now owns 2,481,771 shares of the biopharmaceutical company’s stock worth $87,557,000 after purchasing an additional 2,185,366 shares during the period. 54.35% of the stock is owned by institutional investors and hedge funds.

Royalty Pharma Trading Up 0.9%

The business’s 50-day moving average is $40.40 and its two-hundred day moving average is $38.27. The company has a current ratio of 2.40, a quick ratio of 3.48 and a debt-to-equity ratio of 0.88. The stock has a market capitalization of $26.09 billion, a PE ratio of 33.47, a PEG ratio of 1.72 and a beta of 0.42.

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.