SG Americas Securities Reduces Stake in Royalty Pharma by 22%

SG Americas Securities LLC has reduced its stake in Royalty Pharma PLC (NASDAQ: RPRX) by 22.0% during the third quarter of the year. This reduction was disclosed in the fund’s most recent 13F filing with the U.S. Securities and Exchange Commission (SEC). Following the sale of 15,132 shares, SG Americas now holds 53,573 shares, valued at approximately $1,890,000 as of the end of the reporting period.

Several other institutional investors have also adjusted their positions in Royalty Pharma recently. Notably, Norges Bank acquired a new stake valued at $181,388,000 during the second quarter. Additionally, Arrowstreet Capital Limited Partnership increased its holdings by 118.7%, purchasing an extra 1,615,706 shares for a total of 2,976,480 shares, valued at $107,243,000. Similarly, Amundi boosted its stake by 126.1%, owning 2,797,471 shares worth $101,240,000 after buying 1,560,093 shares in the last quarter.

Another significant change was made by Jupiter Asset Management Ltd., which grew its holdings by 126.5%, now owning 2,470,706 shares valued at $89,020,000. Finally, State Street Corp increased its stake by 7.1%, now possessing 10,194,938 shares, worth $367,324,000. Overall, institutional investors and hedge funds currently own 54.35% of Royalty Pharma’s stock.

Recent Insider Transactions

In related news, several insider sales have taken place at Royalty Pharma. Chief Financial Officer Terrance P. Coyne sold 69,594 shares on November 17, resulting in a total transaction value of $2,735,044.20. This sale represents a 55.96% decrease in his position, leaving him with 54,760 shares valued at approximately $2,152,068. Another significant insider transaction occurred when George W. Lloyd, Executive Vice President, sold 132,426 shares on November 19 for $5,077,212.84.

Over the past 90 days, insiders have sold a total of 936,093 shares worth $36,499,945. Currently, insiders own 18.90% of the company’s stock.

Financial Performance and Dividend Increase

Royalty Pharma recently reported its quarterly earnings on November 5. The biopharmaceutical company announced earnings per share (EPS) of $1.17, exceeding analysts’ expectations of $1.11 by $0.06. The company generated $609.29 million in revenue, falling short of the forecasted $765.01 million. Royalty Pharma achieved a return on equity of 26.36% and maintained a net margin of 32.51%. Analysts predict the company will post $4.49 in earnings per share for the current fiscal year.

In a positive development for shareholders, Royalty Pharma has announced an increase in its quarterly dividend. The new dividend of $0.235 will be paid on March 10, with the record date set for February 20. This marks an increase from the previous quarterly dividend of $0.22, resulting in an annualized dividend of $0.94 and a yield of 2.3%. The company’s payout ratio stands at 71.21%.

Analyst Ratings and Future Outlook

Market analysts have recently updated their ratings for Royalty Pharma. TD Cowen raised their target price from $42.00 to $45.00 and maintained a “buy” rating. Meanwhile, The Goldman Sachs Group initiated coverage with a “buy” rating and a target price of $42.00. On the other hand, Weiss Ratings downgraded the stock from a “buy (B-)” to a “hold (C+)” rating. Wall Street Zen also revised their outlook, moving from a “strong-buy” to a “buy” rating. Finally, Morgan Stanley adjusted their price target from $55.00 to $54.00, while maintaining an “overweight” rating.

Currently, five analysts have issued “buy” ratings for Royalty Pharma, with one rating it as a “hold.” According to data from MarketBeat, the stock holds an average rating of “Moderate Buy” with a consensus target price of $45.60.

Royalty Pharma plc is a specialty finance company that focuses on acquiring biopharmaceutical royalty interests and providing non-dilutive financing to drug developers and rights holders. The company seeks to generate long-term cash flows by purchasing future royalty streams and other revenue rights associated with pharmaceutical products.