Royalty Pharma (NASDAQ:RPRX) Cut to “Buy” at Wall Street Zen

Wall Street Zen lowered shares of Royalty Pharma (NASDAQ:RPRX) from a strong-buy rating to a buy rating in a report released on Saturday morning.

Several other research analysts have also recently weighed in on the stock. Weiss Ratings cut shares of Royalty Pharma from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, May 15th. TD Cowen increased their price objective on shares of Royalty Pharma from $50.00 to $65.00 and gave the company a “buy” rating in a research note on Monday, July 13th. Bank of America reissued a “buy” rating on shares of Royalty Pharma in a research report on Wednesday, August 5th. JPMorgan Chase & Co. boosted their target price on Royalty Pharma from $58.00 to $62.00 and gave the stock an “overweight” rating in a research note on Friday. Finally, UBS Group increased their price target on Royalty Pharma from $51.00 to $57.00 and gave the company a “buy” rating in a research report on Tuesday, April 21st. Eight investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, Royalty Pharma has an average rating of “Buy” and an average price target of $60.86.

Royalty Pharma Trading Up 2.1%

Shares of Royalty Pharma stock opened at $57.97 on Friday. The company has a market capitalization of $33.38 billion, a P/E ratio of 39.98, a price-to-earnings-growth ratio of 1.33 and a beta of 0.43. The stock has a fifty day simple moving average of $56.53 and a 200 day simple moving average of $50.68. Royalty Pharma has a 12-month low of $34.08 and a 12-month high of $60.44. The company has a current ratio of 2.80, a quick ratio of 2.80 and a debt-to-equity ratio of 0.88.

Royalty Pharma (NASDAQ:RPRX) last issued its quarterly earnings data on Wednesday, August 5th. The biopharmaceutical company reported $1.32 earnings per share for the quarter, beating the consensus estimate of $1.27 by $0.05. Royalty Pharma had a return on equity of 30.01% and a net margin of 32.14%.The business had revenue of $674.14 million for the quarter, compared to analysts’ expectations of $758.93 million. On average, sell-side analysts anticipate that Royalty Pharma will post 5.26 earnings per share 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. Investors of record on Friday, August 14th will be paid a dividend of $0.235 per share. This represents a $0.94 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Friday, August 14th. Royalty Pharma’s dividend payout ratio is presently 64.83%.

Insider Buying and Selling at Royalty Pharma

In related news, Director Gregory Norden sold 3,045 shares of Royalty Pharma stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $53.00, for a total value of $161,385.00. Following the completion of the transaction, the director directly owned 191,803 shares in the company, valued at approximately $10,165,559. The trade was a 1.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Marshall Urist sold 13,684 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $52.75, for a total value of $721,831.00. Following the sale, the executive vice president owned 18,197 shares in the company, valued at approximately $959,891.75. This represents a 42.92% decrease in their position. 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 sold a total of 393,009 shares of company stock valued at $21,601,827 in the last quarter. Corporate insiders own 18.84% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in RPRX. LM Advisors LLC bought a new stake in Royalty Pharma during the fourth quarter valued at $26,000. Lloyd Advisory Services LLC. purchased a new stake in shares of Royalty Pharma in the 4th quarter valued at about $30,000. Private Trust Co. NA raised its holdings in shares of Royalty Pharma by 52.9% in the 4th 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 in the last quarter. Blue Trust Inc. boosted its position in shares of Royalty Pharma by 173.4% during the 1st quarter. Blue Trust Inc. now owns 689 shares of the biopharmaceutical company’s stock valued at $33,000 after acquiring an additional 437 shares during the last quarter. Finally, CIBC Private Wealth Group LLC boosted its position in shares of Royalty Pharma by 66.4% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,118 shares of the biopharmaceutical company’s stock valued at $43,000 after acquiring an additional 446 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.