Royalty Pharma (NASDAQ:RPRX) Sets 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 $47.86 and last traded at $47.43, with a volume of 4344628 shares changing hands. The stock had previously closed at $47.48.

Analyst Ratings Changes

A number of brokerages have commented on RPRX. Citigroup lifted their price target on Royalty Pharma from $48.00 to $50.00 and gave the stock a “buy” rating in a research note on Tuesday, January 27th. Wall Street Zen downgraded Royalty Pharma from a “strong-buy” rating to a “buy” rating in a research report on Saturday, February 14th. UBS Group raised Royalty Pharma from a “neutral” rating to a “buy” rating and set a $49.00 price objective for the company in a research note on Friday, January 30th. Leerink Partners set a $45.00 target price on shares of Royalty Pharma in a report on Thursday, December 11th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating on shares of Royalty Pharma in a research note on Thursday, February 12th. Six research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Royalty Pharma currently has a consensus rating of “Buy” and a consensus target price of $48.67.

Royalty Pharma Stock Down 0.6%

The company has a market capitalization of $26.20 billion, a P/E ratio of 33.64 and a beta of 0.40. The company has a debt-to-equity ratio of 0.88, a current ratio of 2.40 and a quick ratio of 2.40. The company has a 50 day moving average of $42.54 and a 200-day moving average of $39.20.

Royalty Pharma (NASDAQ:RPRX) last released its quarterly earnings results on Wednesday, February 11th. The biopharmaceutical company reported $1.46 EPS for the quarter, beating analysts’ consensus estimates of $1.33 by $0.13. Royalty Pharma had a return on equity of 28.21% and a net margin of 32.38%.The business had revenue of $621.99 million during the quarter, compared to analyst estimates of $839.97 million. As a group, equities analysts anticipate that Royalty Pharma PLC will post 4.49 EPS for the current year.

Royalty Pharma Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Friday, February 20th will be issued a dividend of $0.235 per share. This is a boost from Royalty Pharma’s previous quarterly dividend of $0.22. This represents a $0.94 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Friday, February 20th. Royalty Pharma’s dividend payout ratio is currently 69.63%.

Insiders Place Their Bets

In other Royalty Pharma news, EVP Marshall Urist sold 20,000 shares of the company’s stock in a transaction on Friday, January 30th. The shares were sold at an average price of $41.09, for a total value of $821,800.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Terrance P. Coyne sold 34,791 shares of the company’s stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $46.78, for a total transaction of $1,627,522.98. Following the completion of the transaction, the chief financial officer owned 45,761 shares of the company’s stock, valued at $2,140,699.58. This trade represents a 43.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 737,078 shares of company stock valued at $29,862,002 in the last ninety days. 18.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Royalty Pharma

Large investors have recently modified their holdings of the stock. LM Advisors LLC purchased a new position in shares of Royalty Pharma during the 4th quarter worth approximately $26,000. Lloyd Advisory Services LLC. purchased a new position in shares of Royalty Pharma in the 4th quarter valued at approximately $30,000. Smartleaf Asset Management LLC boosted its position in shares of Royalty Pharma by 868.1% during the third quarter. Smartleaf Asset Management LLC now owns 881 shares of the biopharmaceutical company’s stock valued at $31,000 after purchasing an additional 790 shares in the last quarter. Private Trust Co. NA boosted its position in shares of 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 purchasing an additional 288 shares in the last quarter. Finally, Financial Consulate Inc. purchased a new stake in Royalty Pharma in the third quarter worth $35,000. 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.