Royalty Pharma (NASDAQ:RPRX) Sets New 12-Month High – Here’s Why

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

Analyst Ratings Changes

A number of research firms have issued reports on RPRX. Wall Street Zen upgraded Royalty Pharma from a “buy” rating to a “strong-buy” rating in a report on Saturday, May 9th. TD Cowen boosted their price target 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. UBS Group boosted their price objective on Royalty Pharma from $51.00 to $57.00 and gave the stock a “buy” rating in a report on Tuesday, April 21st. Morgan Stanley increased their target price on shares of Royalty Pharma from $61.00 to $63.00 and gave the company an “overweight” rating in a report on Friday, April 10th. Finally, Citigroup boosted their target price on Royalty Pharma from $50.00 to $66.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Seven research analysts have rated the stock with a Buy rating, According to MarketBeat, Royalty Pharma currently has a consensus rating of “Buy” and an average price target of $56.57.

Royalty Pharma Stock Performance

The company 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. The company’s 50-day moving average is $55.37 and its two-hundred day moving average is $49.00. The company has a quick ratio of 2.66, a current ratio of 2.66 and a debt-to-equity ratio of 0.86.

Royalty Pharma (NASDAQ:RPRX) last announced its quarterly earnings data on Wednesday, May 6th. The biopharmaceutical company reported $1.30 EPS for the quarter, topping the consensus estimate of $1.22 by $0.08. The business had revenue of $630.58 million for the quarter, compared to analyst estimates of $881.69 million. Royalty Pharma had a net margin of 33.88% and a return on equity of 29.25%. Equities analysts predict that Royalty Pharma PLC will post 5.18 EPS for the current year.

Royalty Pharma Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Friday, August 14th will be paid a dividend of $0.235 per share. The ex-dividend date is Friday, August 14th. This represents a $0.94 annualized dividend and a dividend yield of 1.6%. Royalty Pharma’s dividend payout ratio (DPR) is presently 63.95%.

Insider Activity at Royalty Pharma

In other Royalty Pharma news, Director Gregory Norden sold 3,045 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $53.00, for a total value of $161,385.00. Following the completion of the sale, the director directly owned 191,803 shares of the company’s stock, valued at $10,165,559. This trade represents a 1.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher Hite sold 100,000 shares of Royalty Pharma stock in a transaction that occurred 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 sale, the executive vice president owned 459,399 shares of the company’s stock, valued at approximately $25,965,231.48. The trade was a 17.88% 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. Over the last quarter, insiders sold 427,800 shares of company stock worth $23,333,723. Company insiders own 18.84% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in RPRX. Morgan Stanley lifted its position in Royalty Pharma by 25.2% in the 4th quarter. Morgan Stanley now owns 55,274,069 shares of the biopharmaceutical company’s stock worth $2,135,790,000 after buying an additional 11,110,115 shares during the last quarter. Capital International Investors grew its position in Royalty Pharma by 14.3% during the fourth quarter. Capital International Investors now owns 31,104,309 shares of the biopharmaceutical company’s stock valued at $1,201,870,000 after acquiring an additional 3,891,615 shares during the last quarter. Norges Bank purchased a new position in shares of Royalty Pharma during the fourth quarter worth approximately $131,923,000. Qube Research & Technologies Ltd raised its stake in shares of Royalty Pharma by 737.3% during the third quarter. Qube Research & Technologies Ltd now owns 2,481,771 shares of the biopharmaceutical company’s stock worth $87,557,000 after acquiring an additional 2,185,366 shares in the last quarter. Finally, Millennium Management LLC raised its stake in shares of Royalty Pharma by 379.2% during the third quarter. Millennium Management LLC now owns 2,235,133 shares of the biopharmaceutical company’s stock worth $78,855,000 after acquiring an additional 1,768,702 shares in the last quarter. Institutional investors own 54.35% of the company’s stock.

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.