Royalty Pharma (NASDAQ:RPRX) Shares Gap Down – What’s Next?

Royalty Pharma PLC (NASDAQ:RPRX) gapped down prior to trading on Tuesday . The stock had previously closed at $63.96, but opened at $59.21. Royalty Pharma shares last traded at $60.0940, with a volume of 1,228,398 shares traded.

Analyst Ratings Changes

RPRX has been the topic of a number of research analyst reports. Wall Street Zen downgraded shares of Royalty Pharma from a “strong-buy” rating to a “buy” rating in a research report on Sunday, August 30th. Bank of America reiterated a “buy” rating on shares of Royalty Pharma in a research report on Wednesday, August 5th. JPMorgan Chase & Co. lifted their target price on shares of Royalty Pharma from $58.00 to $62.00 and gave the company an “overweight” rating in a research note on Friday, August 7th. Weiss Ratings restated a “buy (b-)” rating on shares of Royalty Pharma in a report on Wednesday, August 12th. Finally, Morgan Stanley reaffirmed an “overweight” rating and issued a $65.00 price target on shares of Royalty Pharma in a research note on Thursday, August 6th. Eight analysts have rated the stock with a Buy rating, According to MarketBeat, the stock currently has a consensus rating of “Buy” and an average target price of $61.29.

Royalty Pharma Price Performance

The stock has a 50 day moving average price of $59.11 and a two-hundred day moving average price of $53.27. The company has a debt-to-equity ratio of 0.88, a quick ratio of 2.80 and a current ratio of 2.80. The company has a market capitalization of $34.66 billion, a PE ratio of 41.59, a P/E/G ratio of 1.49 and a beta of 0.44.

Royalty Pharma (NASDAQ:RPRX) last announced its quarterly earnings results on Wednesday, August 5th. The biopharmaceutical company reported $1.32 EPS for the quarter, beating the consensus estimate of $1.27 by $0.05. The business had revenue of $674.14 million during the quarter, compared to analysts’ expectations of $758.93 million. Royalty Pharma had a return on equity of 30.01% and a net margin of 32.14%. Equities analysts forecast that Royalty Pharma PLC will post 5.3 earnings per share for the current year.

Royalty Pharma Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Friday, August 14th will be paid a $0.235 dividend. The ex-dividend date is Friday, August 14th. This represents a $0.94 dividend on an annualized basis and a yield of 1.6%. Royalty Pharma’s payout ratio is 64.83%.

Insider Buying and Selling

In other Royalty Pharma news, EVP Marshall Urist sold 9,099 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $55.88, for a total value of $508,452.12. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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 the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $59.97, for a total transaction of $5,997,000.00. Following the transaction, the executive vice president owned 370,401 shares in the company, valued at approximately $22,212,947.97. This trade represents a 21.26% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 398,197 shares of company stock valued at $22,513,280 over the last quarter. Corporate insiders own 18.84% of the company’s stock.

Hedge Funds Weigh In On Royalty Pharma

Several hedge funds have recently bought and sold shares of RPRX. Barton Investment Management bought a new position in shares of Royalty Pharma in the 1st quarter valued at approximately $905,000. Nomura Asset Management Co. Ltd. boosted its position in Royalty Pharma by 16.2% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 172,418 shares of the biopharmaceutical company’s stock worth $6,662,000 after purchasing an additional 24,048 shares during the period. Thrivent Financial for Lutherans boosted its position in Royalty Pharma by 10.4% during the fourth quarter. Thrivent Financial for Lutherans now owns 233,320 shares of the biopharmaceutical company’s stock worth $9,016,000 after purchasing an additional 22,015 shares during the period. Qsemble Capital Management LP bought a new stake in Royalty Pharma during the fourth quarter worth approximately $2,875,000. Finally, Fideuram Intesa Sanpaolo Private Banking S.P.A. acquired a new position in Royalty Pharma during the fourth quarter valued at approximately $4,923,000. 54.35% of the stock is owned by institutional investors and hedge funds.

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.