Royalty Pharma (NASDAQ:RPRX) Shares Gap Up Following Dividend Announcement

Royalty Pharma plc (NASDAQ:RPRX) gapped up before the market opened on Friday following a dividend announcement from the company. The stock had previously closed at $26.20, but opened at $27.55. Royalty Pharma shares last traded at $27.91, with a volume of 539,187 shares trading hands.

The newly announced dividend which will be paid on Monday, March 10th. Shareholders of record on Friday, February 21st will be issued a dividend of $0.22 per share. The ex-dividend date is Friday, February 21st. This represents a $0.88 dividend on an annualized basis and a yield of 2.98%. This is a boost from Royalty Pharma’s previous quarterly dividend of $0.21. Royalty Pharma’s dividend payout ratio (DPR) is presently 43.52%.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on RPRX shares. Citigroup cut their price objective on shares of Royalty Pharma from $60.00 to $40.00 and set a “buy” rating on the stock in a report on Friday, October 25th. TD Cowen raised shares of Royalty Pharma to a “strong-buy” rating in a report on Tuesday, December 24th. Finally, StockNews.com raised shares of Royalty Pharma from a “hold” rating to a “buy” rating in a report on Tuesday, November 5th. One research analyst has rated the stock with a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Buy” and an average price target of $41.67.

Royalty Pharma Trading Up 12.6 %

The company has a debt-to-equity ratio of 0.64, a current ratio of 1.54 and a quick ratio of 1.54. The firm has a market capitalization of $17.38 billion, a PE ratio of 15.28, a price-to-earnings-growth ratio of 4.36 and a beta of 0.47. The business’s 50-day moving average price is $25.94 and its 200-day moving average price is $27.04.

Hedge Funds Weigh In On Royalty Pharma

A number of hedge funds have recently modified their holdings of the business. Charles Schwab Investment Management Inc. grew its position in Royalty Pharma by 58.1% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 3,001,603 shares of the biopharmaceutical company’s stock valued at $84,915,000 after buying an additional 1,103,341 shares during the last quarter. Two Sigma Advisers LP grew its position in Royalty Pharma by 44.7% in the 3rd quarter. Two Sigma Advisers LP now owns 3,033,200 shares of the biopharmaceutical company’s stock valued at $85,809,000 after buying an additional 936,900 shares during the last quarter. Point72 Asset Management L.P. purchased a new position in Royalty Pharma in the 3rd quarter valued at $14,898,000. Geode Capital Management LLC grew its position in Royalty Pharma by 6.1% in the 3rd quarter. Geode Capital Management LLC now owns 7,265,786 shares of the biopharmaceutical company’s stock valued at $205,562,000 after buying an additional 417,490 shares during the last quarter. Finally, Dark Forest Capital Management LP grew its position in Royalty Pharma by 2,974.4% in the 2nd quarter. Dark Forest Capital Management LP now owns 338,675 shares of the biopharmaceutical company’s stock valued at $8,931,000 after buying an additional 327,659 shares during the last quarter. 54.35% of the stock is currently owned by hedge funds and other institutional investors.

About Royalty Pharma

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.