Royalty Pharma (NASDAQ:RPRX) Stock Rating Upgraded by Wall Street Zen

Royalty Pharma (NASDAQ:RPRX) was upgraded by equities researchers at Wall Street Zen from a “buy” rating to a “strong-buy” rating in a research note issued on Saturday.

Several other analysts have also recently commented on the company. Weiss Ratings cut Royalty Pharma from a “buy (b-)” rating to a “hold (c+)” rating in a report on Saturday, October 25th. The Goldman Sachs Group started coverage on shares of Royalty Pharma in a report on Tuesday, September 30th. They set a “buy” rating and a $42.00 price objective on the stock. Cowen restated a “buy” rating on shares of Royalty Pharma in a research report on Thursday, December 11th. Morgan Stanley reduced their target price on shares of Royalty Pharma from $55.00 to $54.00 and set an “overweight” rating on the stock in a research report on Friday, October 10th. Finally, TD Cowen raised their price target on shares of Royalty Pharma from $42.00 to $45.00 and gave the company a “buy” rating in a report on Thursday, December 11th. Five analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $45.60.

Royalty Pharma Price Performance

Shares of Royalty Pharma stock opened at $39.55 on Friday. The stock has a market capitalization of $22.83 billion, a price-to-earnings ratio of 29.96, a P/E/G ratio of 1.90 and a beta of 0.43. The firm’s 50-day moving average price is $39.29 and its two-hundred day moving average price is $37.44. The company has a current ratio of 3.48, a quick ratio of 3.48 and a debt-to-equity ratio of 0.89. Royalty Pharma has a 1-year low of $29.66 and a 1-year high of $41.70.

Royalty Pharma (NASDAQ:RPRX) last posted its earnings results on Wednesday, November 5th. The biopharmaceutical company reported $1.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.11 by $0.06. Royalty Pharma had a net margin of 32.51% and a return on equity of 26.36%. The company had revenue of $609.29 million during the quarter, compared to analysts’ expectations of $765.01 million. On average, equities analysts predict that Royalty Pharma will post 4.49 earnings per share for the current fiscal year.

Insider Activity at Royalty Pharma

In related news, EVP Marshall Urist sold 20,000 shares of the stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $40.78, for a total transaction of $815,600.00. Following the completion of the sale, the executive vice president directly owned 60,000 shares of the company’s stock, valued at approximately $2,446,800. This represents a 25.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Terrance P. Coyne sold 69,582 shares of Royalty Pharma stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $38.42, for a total transaction of $2,673,340.44. Following the completion of the transaction, the chief financial officer directly owned 39,760 shares in the company, valued at approximately $1,527,579.20. The trade was a 63.64% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 936,093 shares of company stock worth $36,499,945 in the last quarter. Corporate insiders own 18.90% of the company’s stock.

Hedge Funds Weigh In On Royalty Pharma

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Capital International Investors raised its stake in shares of Royalty Pharma by 24.4% in the 3rd quarter. Capital International Investors now owns 27,212,694 shares of the biopharmaceutical company’s stock valued at $960,064,000 after purchasing an additional 5,332,074 shares during the period. Swedbank AB lifted its stake in Royalty Pharma by 0.4% in the 3rd quarter. Swedbank AB now owns 12,200,270 shares of the biopharmaceutical company’s stock valued at $430,426,000 after acquiring an additional 42,800 shares in the last quarter. State Street Corp boosted its position in Royalty Pharma by 0.8% during the 3rd quarter. State Street Corp now owns 10,272,753 shares of the biopharmaceutical company’s stock worth $362,423,000 after acquiring an additional 77,815 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Royalty Pharma by 2.2% during the 2nd quarter. Geode Capital Management LLC now owns 8,176,504 shares of the biopharmaceutical company’s stock worth $299,494,000 after acquiring an additional 177,036 shares in the last quarter. Finally, Norges Bank acquired a new stake in shares of Royalty Pharma in the second quarter valued at approximately $181,388,000. 54.35% of the stock is owned by institutional investors and hedge funds.

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.