Royalty Pharma Target of Unusually Large Options Trading (NASDAQ:RPRX)

Royalty Pharma plc (NASDAQ:RPRX) was the target of some unusual options trading activity on Tuesday. Stock investors bought 2,751 call options on the company. This is an increase of approximately 532% compared to the average volume of 435 call options.

Wall Street Analyst Weigh In

RPRX has been the topic of several research reports. StockNews.com upgraded shares of Royalty Pharma from a “hold” rating to a “buy” rating in a report on Tuesday, November 5th. TD Cowen upgraded Royalty Pharma to a “strong-buy” rating in a research note on Tuesday, December 24th. Finally, Citigroup reduced their target price on shares of Royalty Pharma from $60.00 to $40.00 and set a “buy” rating for the company in a research note on Friday, October 25th. One investment analyst has rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, Royalty Pharma currently has a consensus rating of “Buy” and an average target price of $41.67.

Hedge Funds Weigh In On Royalty Pharma

A number of large investors have recently added to or reduced their stakes in the business. Brooklyn Investment Group grew its stake in shares of Royalty Pharma by 1,006.9% during the fourth quarter. Brooklyn Investment Group now owns 963 shares of the biopharmaceutical company’s stock valued at $25,000 after buying an additional 876 shares during the last quarter. Blue Trust Inc. grew its holdings in Royalty Pharma by 362.7% in the 3rd quarter. Blue Trust Inc. now owns 1,203 shares of the biopharmaceutical company’s stock worth $32,000 after acquiring an additional 943 shares during the last quarter. Wilmington Savings Fund Society FSB bought a new stake in shares of Royalty Pharma in the third quarter worth about $61,000. GAMMA Investing LLC increased its stake in shares of Royalty Pharma by 31.4% during the fourth quarter. GAMMA Investing LLC now owns 2,471 shares of the biopharmaceutical company’s stock valued at $63,000 after buying an additional 590 shares during the period. Finally, EverSource Wealth Advisors LLC increased its position in Royalty Pharma by 32.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,698 shares of the biopharmaceutical company’s stock valued at $76,000 after purchasing an additional 655 shares during the period. Hedge funds and other institutional investors own 54.35% of the company’s stock.

Royalty Pharma Price Performance

Shares of NASDAQ RPRX traded up $0.33 during trading hours on Thursday, reaching $31.07. 2,210,636 shares of the stock traded hands, compared to its average volume of 3,913,582. The company’s 50-day simple moving average is $26.05 and its two-hundred day simple moving average is $27.09. The company has a market capitalization of $18.31 billion, a P/E ratio of 16.07 and a beta of 0.47. Royalty Pharma has a 52-week low of $24.05 and a 52-week high of $31.66. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 0.64.

Royalty Pharma Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 10th. Investors of record on Friday, February 21st will be issued a dividend of $0.22 per share. The ex-dividend date of this dividend is Friday, February 21st. This represents a $0.88 annualized dividend and a dividend yield of 2.83%. This is a positive change from Royalty Pharma’s previous quarterly dividend of $0.21. Royalty Pharma’s dividend payout ratio (DPR) is currently 43.52%.

Royalty Pharma Company Profile

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.