This trade activity should not be overlooked: Royalty Pharma plc (RPRX)

Royalty Pharma plc (NASDAQ: RPRX) stock jumped 0.88% on Friday to $41.06 against a previous-day closing price of $40.70. With 1.65 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.97 million shares. The 52-week range on RPRX shows that it touched its highest point at $44.75 and its lowest point at $34.86 during that stretch. It currently has a 1-year price target of $54.34. With its current market cap of 25.06 billion, RPRX has annualized dividend of $0.76 while the current yield stands at 1.85%.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RPRX was down-trending over the past week, with a drop of -2.63%, but this was down by -5.50% over a month. Three-month performance dropped to -0.05% while six-month performance rose 6.57%. The stock gained 13.14% in the past year, while it has gained 3.04% so far this year. A look at the trailing 12-month EPS for RPRX yields 1.07 with Next year EPS estimates of 3.53. For the next quarter, that number is 0.72. This implies an EPS growth rate of 13.30% for this year and 16.84% for next year.

Float and Shares Shorts:

At present, 436.32 million RPRX shares are outstanding with a float of 323.93 million shares on hand for trading. On Jul 14, 2022, short shares totaled 13.43 million, which was 3.09% higher than short shares on Jun 14, 2022. In addition to Mr. Pablo Gerardo Legorreta as the firm’s Founder, Chairman & CEO, Mr. Terrance P. Coyne serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 63.29% of RPRX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 39.61% of RPRX, in contrast to 26.25% held by mutual funds. Shares owned by individuals account for 25.88%. As the largest shareholder in RPRX with 10.86% of the stake, Morgan Stanley Investment Managem holds 47,273,159 shares worth 47,273,159. A second-largest stockholder of RPRX, Fidelity Management & Research Co, holds 33,928,666 shares, controlling over 7.79% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in RPRX, holding 32,120,487 shares or 7.38% stake. With a 2.37% stake in RPRX, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 10,323,571 shares are owned by the mutual fund manager. The Morgan Stanley Instl. Fund-Growth, which owns about 2.25% of RPRX stock, is the second-largest Mutual Fund holder. It holds 9,787,734 shares valued at 409.23 million. Morgan Stanley Invt. Fds. – US Ad holds 1.94% of the stake in RPRX, owning 8,431,503 shares worth 352.52 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RPRX since 10 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With RPRX analysts setting a high price target of $60.00 and a low target of $49.40, the average target price over the next 12 months is $53.64. Based on these targets, RPRX could surge 46.13% to reach the target high and rise by 20.31% to reach the target low. Reaching the average price target will result in a growth of 30.64% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. RPRX will report FY 2022 earnings on 02/14/2023. Analysts have provided yearly estimates in a range of $3.21 being high and $2.90 being low. For RPRX, this leads to a yearly average estimate of $3.02. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Royalty Pharma plc surprised analysts by $0.03 when it reported $0.81 EPS against a consensus estimate of $0.78. The surprise factor in the prior quarter was -$0.13. Based on analyst estimates, the high estimate for the next quarter is $0.75 and the low estimate is $0.68. The average estimate for the next quarter is thus $0.71.

Dividends & Yield:

In terms of dividends, RPRX has a current ratio of $0.76, which is $0.76 over the trailing 12-months. Dividend yield is another indicator that appeals to many investors, and RPRX currently yields $1.8. In the past year, RPRX’s dividend yield has been $1.8. Accordingly, RPRX has a current buyback yield of $0.0. This was $0.0 for the TTM.

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