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

Royalty Pharma PLC (NASDAQ:RPRX)’s stock price gapped down before the market opened 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 changing hands.

Analyst Ratings Changes

Several brokerages have recently issued reports on RPRX. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Royalty Pharma in a research note on Wednesday, August 12th. TD Cowen raised their target price on shares of Royalty Pharma from $65.00 to $68.00 and gave the stock a “buy” rating in a report on Tuesday. Wall Street Zen lowered shares of Royalty Pharma from a “strong-buy” rating to a “buy” rating in a research report on Sunday, August 30th. Bank of America reaffirmed a “buy” rating on shares of Royalty Pharma in a report on Wednesday, August 5th. Finally, The Goldman Sachs Group reiterated a “buy” rating and set a $66.00 price objective on shares of Royalty Pharma in a research report on Thursday, August 6th. Eight research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $61.29.

Royalty Pharma Trading Down 5.7%

The company has a fifty day simple moving average of $59.11 and a 200-day simple moving average of $53.27. The company has a current ratio of 2.80, a quick ratio of 2.80 and a debt-to-equity ratio of 0.88. The stock has a market cap of $34.66 billion, a price-to-earnings ratio of 41.59, a P/E/G ratio of 1.49 and a beta of 0.44.

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

Royalty Pharma Announces Dividend

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

Insider Activity at Royalty Pharma

In other Royalty Pharma news, EVP Christopher Hite sold 100,000 shares of Royalty Pharma stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $59.97, for a total transaction of $5,997,000.00. Following the transaction, the executive vice president directly owned 370,401 shares in the company, valued at approximately $22,212,947.97. The trade was a 21.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Marshall Urist sold 9,099 shares of the business’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $55.88, for a total transaction of $508,452.12. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 398,197 shares of company stock valued at $22,513,280. 18.84% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Phillips Wealth Planners LLC lifted its stake in Royalty Pharma by 1.9% in the 4th quarter. Phillips Wealth Planners LLC now owns 13,113 shares of the biopharmaceutical company’s stock worth $521,000 after acquiring an additional 242 shares in the last quarter. Strs Ohio boosted its position in Royalty Pharma by 2.8% during the 4th quarter. Strs Ohio now owns 9,318 shares of the biopharmaceutical company’s stock worth $360,000 after acquiring an additional 252 shares during the period. Glenmede Trust Co. NA grew its stake in Royalty Pharma by 3.4% during the 1st 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 in the last quarter. Cary Street Partners Financial LLC grew its stake in Royalty Pharma by 1.1% during the 4th quarter. Cary Street Partners Financial LLC now owns 24,405 shares of the biopharmaceutical company’s stock valued at $943,000 after acquiring an additional 260 shares in the last quarter. Finally, Bessemer Group Inc. increased its holdings in shares of Royalty Pharma by 34.7% in the 1st quarter. Bessemer Group Inc. now owns 1,094 shares of the biopharmaceutical company’s stock valued at $53,000 after purchasing an additional 282 shares during the period. 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.