SG Americas Securities LLC has reduced its stake in Royalty Pharma PLC (NASDAQ: RPRX) by 22% during the third quarter of 2023. According to a recent 13F filing with the U.S. Securities and Exchange Commission (SEC), the firm now holds 53,573 shares of the biopharmaceutical company after selling 15,132 shares during the quarter. As of the end of September, SG Americas’ holdings in Royalty Pharma were valued at approximately $1,890,000.
Several other institutional investors have also adjusted their positions in Royalty Pharma. Notably, Norges Bank acquired a new stake valued at $181,388,000 during the second quarter. Arrowstreet Capital Limited Partnership increased its holdings by 118.7%, now owning 2,976,480 shares worth about $107,243,000 after purchasing an additional 1,615,706 shares in the last quarter. Similarly, Amundi boosted its stake by 126.1%, now owning 2,797,471 shares valued at $101,240,000 following an additional purchase of 1,560,093 shares. Jupiter Asset Management Ltd. also grew its holdings by 126.5% during the same period, now owning 2,470,706 shares worth $89,020,000.
As of now, institutional investors and hedge funds collectively hold 54.35% of Royalty Pharma’s stock.
Executive Transactions and Stock Performance
In related news, Terrance P. Coyne, Chief Financial Officer of Royalty Pharma, sold 69,594 shares on November 17, 2023, at an average price of $39.30, generating about $2,735,044 from the transaction. Following this sale, Coyne retains 54,760 shares, valued at approximately $2,152,068, which represents a 55.96% decrease in his holdings.
Additionally, George W. Lloyd, Executive Vice President, sold 132,426 shares on November 19, 2023, for a total of $5,077,212. In total, insiders have sold 936,093 shares valued at $36,499,945 over the past 90 days, with insiders now holding 18.90% of the company’s stock.
Royalty Pharma’s stock recently experienced a 0.4% decline, reflecting market volatility. The company reported its quarterly earnings on November 5, 2023, announcing a earnings per share (EPS) of $1.17, exceeding analysts’ estimates of $1.11 by $0.06. The company generated revenues of $609.29 million during the quarter, falling short of the expected $765.01 million.
Dividend Increase and Analyst Ratings
Royalty Pharma has also announced an increase in its quarterly dividend, now set at $0.235 per share, which will be paid on March 10, 2024. Shareholders on record as of February 20, 2024, will be eligible for this payout. This change marks a positive adjustment from the previous quarterly dividend of $0.22, representing an annualized dividend of $0.94 and a yield of 2.3%. The company maintains a payout ratio of 71.21%.
Analysts on Wall Street have shared their insights on Royalty Pharma. TD Cowen recently raised their target price from $42.00 to $45.00, while maintaining a “buy” rating. Meanwhile, The Goldman Sachs Group initiated coverage with a “buy” rating and a target price of $42.00. Weiss Ratings downgraded the stock from a “buy” to a “hold” rating, and Wall Street Zen also adjusted its rating from “strong-buy” to “buy.” Currently, five analysts have assigned a “buy” rating, while one analyst holds a “hold” rating, resulting in a consensus average rating of “Moderate Buy” and a target price of $45.60.
Royalty Pharma PLC is recognized as a specialty finance company that acquires biopharmaceutical royalty interests and provides financing options to drug developers. By purchasing future royalty streams and milestone-contingent payments, the company aims to generate long-term cash flows tied to a diversified portfolio of pharmaceutical products.
