Royalty Pharma (NASDAQ:RPRX) Sees Large Volume Increase – Should You Buy?

Royalty Pharma plc (NASDAQ:RPRX) shares saw unusually-strong trading volume on Wednesday . Approximately 4,420,897 shares were traded during mid-day trading, an increase of 54% from the previous session’s volume of 2,868,663 shares.The stock last traded at $33.07 and had previously closed at $33.76.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. TD Cowen upgraded shares of Royalty Pharma to a “strong-buy” rating in a research note on Tuesday, December 24th. Citigroup restated a “buy” rating on shares of Royalty Pharma in a research report on Friday. One investment analyst has rated the stock with a hold rating, five have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, Royalty Pharma currently has an average rating of “Buy” and an average target price of $41.60.

Royalty Pharma Stock Performance

The firm’s 50 day moving average is $32.43 and its 200-day moving average is $28.82. The stock has a market capitalization of $18.08 billion, a price-to-earnings ratio of 21.63, a PEG ratio of 2.31 and a beta of 0.47. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.44 and a current ratio of 1.44.

Royalty Pharma (NASDAQ:RPRX) last issued its quarterly earnings data on Tuesday, February 11th. The biopharmaceutical company reported $1.15 earnings per share for the quarter, topping analysts’ consensus estimates of $0.99 by $0.16. Royalty Pharma had a net margin of 37.94% and a return on equity of 24.40%. Analysts forecast that Royalty Pharma plc will post 4.49 earnings per share for the current fiscal year.

Royalty Pharma Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 10th. Shareholders of record on Friday, February 21st were issued a $0.22 dividend. This is a positive change from Royalty Pharma’s previous quarterly dividend of $0.21. This represents a $0.88 annualized dividend and a yield of 2.81%. The ex-dividend date of this dividend was Friday, February 21st. Royalty Pharma’s dividend payout ratio (DPR) is presently 60.69%.

Institutional Trading of Royalty Pharma

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Advisors Asset Management Inc. acquired a new stake in Royalty Pharma in the 3rd quarter worth about $359,000. Charles Schwab Investment Management Inc. grew its position in shares of Royalty Pharma by 58.1% in the third quarter. Charles Schwab Investment Management Inc. now owns 3,001,603 shares of the biopharmaceutical company’s stock valued at $84,915,000 after purchasing an additional 1,103,341 shares in the last quarter. Cerity Partners LLC increased its holdings in shares of Royalty Pharma by 11.1% in the third quarter. Cerity Partners LLC now owns 32,896 shares of the biopharmaceutical company’s stock valued at $931,000 after purchasing an additional 3,291 shares during the last quarter. Daiwa Securities Group Inc. boosted its stake in Royalty Pharma by 10.8% during the third quarter. Daiwa Securities Group Inc. now owns 30,694 shares of the biopharmaceutical company’s stock worth $868,000 after buying an additional 3,000 shares during the last quarter. Finally, Bank of Montreal Can grew its holdings in Royalty Pharma by 186.0% in the 3rd quarter. Bank of Montreal Can now owns 445,937 shares of the biopharmaceutical company’s stock valued at $12,580,000 after buying an additional 290,019 shares in the last quarter. 54.35% of the stock is currently owned by hedge funds and other institutional investors.

Royalty Pharma Company Profile

Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovations in the biopharmaceutical industry in the United States. It is also involved in the identification, evaluation, and acquisition of royalties on various biopharmaceutical therapies. In addition, the company collaborates with innovators from academic institutions, research hospitals and not-for-profits, small and mid-cap biotechnology companies, and pharmaceutical companies.