SG Americas Securities LLC has decreased its stake in Royalty Pharma PLC (NASDAQ: RPRX) by 22% during the third quarter, as reported in its latest 13F filing with the U.S. Securities and Exchange Commission (SEC). The investment fund now holds 53,573 shares of the biopharmaceutical company, having sold 15,132 shares during the quarter. At the end of this reporting period, SG Americas’ holdings were valued at approximately $1.89 million.
A number of other institutional investors have also made significant adjustments to their positions in Royalty Pharma. Norges Bank acquired a new stake valued at $181.39 million during the second quarter. Meanwhile, Arrowstreet Capital Limited Partnership increased its holdings by an impressive 118.7%, now owning 2,976,480 shares worth $107.24 million after purchasing an additional 1,615,706 shares.
Similarly, Amundi boosted its stake by 126.1%, now holding 2,797,471 shares valued at $101.24 million. Jupiter Asset Management Ltd. also grew its investment by 126.5%, acquiring 2,470,706 shares worth $89.02 million. Lastly, State Street Corp increased its holdings by 7.1%, now owning 10,194,938 shares valued at $367.32 million. Collectively, institutional investors and hedge funds own 54.35% of Royalty Pharma’s stock.
Insider Transactions Highlight Activity
In addition to institutional movements, insider trading activity has also been notable. Chief Financial Officer Terrance P. Coyne sold 69,594 shares on November 17, at an average price of $39.30, resulting in a transaction value of $2,735,044.20. Following this sale, Coyne retained 54,760 shares valued at approximately $2.15 million, reflecting a 55.96% reduction in his position.
On November 19, Executive Vice President George W. Lloyd sold 132,426 shares at an average price of $38.34, amounting to $5,077,212.84. Over the last 90 days, insiders have sold 936,093 shares worth about $36.50 million, with insiders currently owning 18.90% of the company’s stock.
Recent Performance and Future Outlook
Royalty Pharma recently reported its quarterly earnings on November 5, 2023, announcing an earnings per share (EPS) of $1.17, exceeding analyst expectations of $1.11 by $0.06. The company reported revenue of $609.29 million, falling short of the anticipated $765.01 million. Royalty Pharma’s return on equity stands at 26.36%, with a net margin of 32.51%. Analysts forecast an average EPS of 4.49 for the current year.
In a positive development, the company has declared a quarterly dividend of $0.235, which will be distributed on March 10, 2024. Investors of record by February 20, 2024, will be eligible for this dividend, marking an increase from the previous quarterly dividend of $0.22. The annualized dividend now stands at $0.94, representing a yield of 2.3%. Royalty Pharma’s current payout ratio is 71.21%.
Market analysts have recently provided insights into Royalty Pharma’s stock. TD Cowen has raised its target price from $42.00 to $45.00, maintaining a “buy” rating. The Goldman Sachs Group initiated coverage with a “buy” rating and a price target of $42.00. In contrast, Weiss Ratings downgraded the stock from “buy” to “hold”. As it stands, five analysts rate Royalty Pharma as a “buy,” while one has assigned a “hold” rating, leading to an average rating of “Moderate Buy” with a consensus target price of $45.60.
Royalty Pharma PLC specializes in acquiring biopharmaceutical royalty interests and providing financing solutions to drug developers. The firm aims to generate long-term cash flows by purchasing future royalty streams linked to pharmaceutical and biotechnology products. Its various transaction structures are tailored to meet the needs of innovative companies, academic institutions, and investors.
For more detailed information on Royalty Pharma and its current financial positioning, stakeholders can refer to the latest filings and reports available through SEC disclosures and financial analysis platforms.
