Royalty Pharma plc (NASDAQ:RPRX), a well-known biopharmaceutical company, has been given a unanimous rating of “Buy” by seven ratings firms covering the firm according to the Bloomberg Ratings Report. Of these firms, five equities research analysts gave RPRX a buy recommendation. With these expert endorsements and a 1-year target price of $54 per share among brokers who issued ratings on the stock in the last year, it is clear that Royalty Pharma is poised for success.
Notably, several institutional investors have recently bought up shares of RPRX while others have offloaded them. Dark Forest Capital Management LP acquired a new position in Royalty Pharma shares valued at approximately $30,000 in Q4, 2020. Captrust Financial Advisors increased its holdings in shares of Royalty Pharma by 210.8% during Q2 and now owns over 800 shares of the company’s stock valued at $34,000. CI Investments Inc., meanwhile, boosted its stake by 79.4% during Q3 of 2020 and now holds nearly 1,000 shares valued at $39,000.
Additionally worth noting is that Institutional investors and hedge funds own over half (55.36%) of RPRX’s outstanding shares. These increases in institutional holdings suggest growing faith in Royalty Pharma’s future prospects.
In further good news for investors, Royalty Pharma announced recently that it will issue another quarterly dividend which will be paid out on Thursday, June 15th,. Stockholders who were recorded as owning shares as of Friday, May 19th will receive payment of this dividend totaling $0.20 per share which represents an annualized dividend yield of 2.44%. Despite this being higher than their current payout ratio of ($145.45%) analysts predict robust earnings growth for the company going forward which suggests that they can support this payout.
Overall it is clear that Royalty Pharma has caught the attention of investors and ratings analysts alike as it looks to make its mark in the biopharmaceutical industry. A positive outlook, increasing institutional investment and rising quarterly dividends make for an appealing prospect for those looking to invest in a company with strong long-term prospects.
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Royalty Pharma: Divergent Views, but Strong Prospects in the Pharmaceutical Industry
Royalty Pharma (NASDAQ:RPRX) has been in the limelight recently, with a number of research analyst reports offering their opinions on the pharmaceutical company. UBS Group lowered its target price for Royalty Pharma from $51.00 to $48.00 while maintaining a “buy” rating of the company. Likewise, Tigress Financial raised its target price on RPRX from $57.00 to $60.00, also giving the pharmaceutical giant a “buy” rating. In contrast, TheStreet dropped its rating from “c-” to “d+” in May.
Despite these divergent views by different institutions, there remains considerable enthusiasm around RPRX as evidenced by Morgan Stanley’s lifting of its price objective earlier this year from $48.00 to $50.00 and giving the company an “overweight” rating.
Analysis of Royalty Pharma’s stock performance reveals that it opened at $32.81 on Tuesday, with 50- and 200-day moving averages both slightly above this threshold at $34.58 and $36.99 respectively. Its 12-month low stands at $32.02 and high at $44.66, reflecting a market capitalization of just under $20 billion. Royalty Pharma shows a reasonably good financial footing too, reflected in its ratios; current ratio-2+36, quick ratio-2+36 with little debt.
There has also been insider trading activity in RPRX’s stock recently; EVP George W Lloyd sold 19,215 shares on June 5th worth approximately USD 644k exposing his outlook to be more downbeat than other analysts covering the stock.
However in more positive news for shareholders CEO Pablo G Legorreta bought an impressive 160,388 shares on May16th valued at over USD 5m.
Insiders have sold over 1 million shares in past three months but they remain positive about the future of RPRX, with insiders owning a quarter of company stock.
All in all, despite some disagreements among research analysts and insider trading activity, it remains clear that the prospects for Royalty Pharma remain bright, with its solid financial footing backing up its leading position in the highly competitive pharmaceutical industry sector.