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

Royalty Pharma PLC (NASDAQ:RPRX) hit a new 52-week high during trading on Monday . The company traded as high as $59.33 and last traded at $57.5710, with a volume of 2849 shares changing hands. The stock had previously closed at $57.77.

Wall Street Analysts Forecast Growth

RPRX has been the subject of a number of research reports. Wall Street Zen raised Royalty Pharma from a “buy” rating to a “strong-buy” rating in a report on Saturday, May 9th. Weiss Ratings downgraded shares of Royalty Pharma from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, May 15th. UBS Group raised their price target on shares of Royalty Pharma from $51.00 to $57.00 and gave the stock a “buy” rating in a research report on Tuesday, April 21st. Morgan Stanley lifted their price objective on shares of Royalty Pharma from $61.00 to $63.00 and gave the stock an “overweight” rating in a research note on Friday, April 10th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Royalty Pharma from $50.00 to $58.00 and gave the company an “overweight” rating in a report on Thursday, May 7th. Seven investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Royalty Pharma currently has a consensus rating of “Buy” and an average price target of $53.71.

Royalty Pharma Price Performance

The stock has a market capitalization of $33.28 billion, a price-to-earnings ratio of 39.32, a PEG ratio of 1.56 and a beta of 0.43. The company has a debt-to-equity ratio of 0.86, a quick ratio of 2.66 and a current ratio of 2.66. The company has a fifty day simple moving average of $53.87 and a two-hundred day simple moving average of $47.56.

Royalty Pharma (NASDAQ:RPRX) last released its earnings results on Wednesday, May 6th. The biopharmaceutical company reported $1.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.22 by $0.08. Royalty Pharma had a return on equity of 29.25% and a net margin of 33.88%.The company had revenue of $630.58 million for the quarter, compared to analyst estimates of $881.69 million. As a group, equities research analysts expect that Royalty Pharma PLC will post 5.05 earnings per share for the current fiscal year.

Royalty Pharma Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 15th were paid a dividend of $0.235 per share. This represents a $0.94 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date was Friday, May 15th. Royalty Pharma’s dividend payout ratio is presently 63.95%.

Insider Activity

In related news, EVP Christopher Hite sold 150,000 shares of the stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $54.40, for a total transaction of $8,160,000.00. Following the sale, the executive vice president owned 559,399 shares in the company, valued at approximately $30,431,305.60. This trade represents a 21.14% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Terrance P. Coyne sold 64,399 shares of Royalty Pharma stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $53.98, for a total transaction of $3,476,258.02. 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 427,800 shares of company stock valued at $23,333,723 in the last 90 days. 18.84% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Royalty Pharma

A number of large investors have recently modified their holdings of the business. Phillips Wealth Planners LLC raised its holdings in shares of Royalty Pharma by 1.9% during the 4th quarter. Phillips Wealth Planners LLC now owns 13,113 shares of the biopharmaceutical company’s stock worth $521,000 after buying an additional 242 shares in the last quarter. Strs Ohio boosted its stake in Royalty Pharma by 2.8% in the fourth quarter. Strs Ohio now owns 9,318 shares of the biopharmaceutical company’s stock valued at $360,000 after buying an additional 252 shares in the last quarter. Glenmede Trust Co. NA grew its position in Royalty Pharma by 3.4% in the first quarter. Glenmede Trust Co. NA now owns 7,812 shares of the biopharmaceutical company’s stock valued at $375,000 after acquiring an additional 254 shares during the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd grew its position in Royalty Pharma by 0.6% in the fourth quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 43,287 shares of the biopharmaceutical company’s stock valued at $1,673,000 after acquiring an additional 255 shares during the last quarter. Finally, Cary Street Partners Financial LLC raised its stake in Royalty Pharma by 1.1% during the fourth quarter. Cary Street Partners Financial LLC now owns 24,405 shares of the biopharmaceutical company’s stock worth $943,000 after acquiring an additional 260 shares in the last quarter. Institutional investors and hedge funds 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.