Royalty Pharma (NASDAQ:RPRX) Sets New 52-Week High – Still a Buy?

Royalty Pharma PLC (NASDAQ:RPRX) reached a new 52-week high during trading on Friday . The stock traded as high as $46.37 and last traded at $46.1250, with a volume of 1008568 shares changing hands. The stock had previously closed at $45.36.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Morgan Stanley reiterated an “overweight” rating and issued a $61.00 target price on shares of Royalty Pharma in a research note on Thursday, February 12th. The Goldman Sachs Group reiterated a “buy” rating on shares of Royalty Pharma in a research note on Thursday, February 12th. Wall Street Zen cut shares of Royalty Pharma from a “strong-buy” rating to a “buy” rating in a report on Saturday, February 14th. Citigroup raised their price target on Royalty Pharma from $48.00 to $50.00 and gave the stock a “buy” rating in a report on Tuesday, January 27th. Finally, Leerink Partners set a $45.00 price target on Royalty Pharma in a research report on Thursday, December 11th. Six equities research analysts have rated the stock with a Buy rating, According to MarketBeat, Royalty Pharma currently has an average rating of “Buy” and a consensus price target of $48.67.

Royalty Pharma Stock Up 1.9%

The company has a market cap of $26.66 billion, a PE ratio of 34.23 and a beta of 0.42. The stock has a 50-day moving average of $41.79 and a 200-day moving average of $38.86. The company has a quick ratio of 2.40, a current ratio of 2.40 and a debt-to-equity ratio of 0.88.

Royalty Pharma (NASDAQ:RPRX) last posted its earnings results on Wednesday, February 11th. The biopharmaceutical company reported $1.46 EPS for the quarter, topping the consensus estimate of $1.33 by $0.13. The business had revenue of $621.99 million during 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%. Sell-side analysts predict that Royalty Pharma PLC will post 4.49 earnings per share for the current fiscal year.

Royalty Pharma Increases Dividend

The business 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. This represents a $0.94 annualized dividend and a dividend yield of 2.0%. This is a positive change from Royalty Pharma’s previous quarterly dividend of $0.22. The ex-dividend date is Friday, February 20th. Royalty Pharma’s dividend payout ratio (DPR) is currently 69.63%.

Insider Buying and Selling

In other Royalty Pharma news, EVP Marshall Urist sold 20,000 shares of the business’s stock in a transaction that occurred on Friday, January 30th. The shares were sold at an average price of $41.09, for a total value of $821,800.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Terrance P. Coyne sold 20,163 shares of the firm’s stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $43.29, for a total transaction of $872,856.27. Following the sale, the chief financial officer owned 22,885 shares in the company, valued at approximately $990,691.65. This trade represents a 46.84% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 965,020 shares of company stock worth $38,670,657 over the last ninety days. 18.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Royalty Pharma

A number of large investors have recently added to or reduced their stakes in the company. LM Advisors LLC purchased a new position in shares of Royalty Pharma in the 4th quarter worth about $26,000. Lloyd Advisory Services LLC. bought a new stake in Royalty Pharma in the 4th quarter worth approximately $30,000. Smartleaf Asset Management LLC boosted its stake in Royalty Pharma by 868.1% in the third quarter. Smartleaf Asset Management LLC now owns 881 shares of the biopharmaceutical company’s stock worth $31,000 after buying an additional 790 shares in the last quarter. Private Trust Co. NA grew its position in 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 acquiring an additional 288 shares during the last quarter. Finally, Financial Consulate Inc. bought a new position in Royalty Pharma during the third quarter valued at approximately $35,000. Hedge funds and other 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.