The stock price of Royalty Pharma plc (NASDAQ: RPRX) has plunged by -1.37 when compared to previous closing price of 26.36, but the company has seen a -5.59% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2024-11-09 that Royalty Pharma’s Q3 results met expectations, with a modest 2024 outlook increase, driven by strong portfolio performance and new royalty acquisitions. The CF franchise remains a key cash cow despite challenges, with Vertex’s Venza triple development posing potential headwinds. With a compelling valuation, a $1 billion buyback, and a supportive pipeline, Royalty Pharma is a strong buy.
Is It Worth Investing in Royalty Pharma plc (NASDAQ: RPRX) Right Now?
Royalty Pharma plc (NASDAQ: RPRX) has a higher price-to-earnings ratio of 10.17x compared to its average ratio, The 36-month beta value for RPRX is at 0.45. Analysts have varying views on the stock, with 4 analysts rating it as a “buy,” 2 rating it as “overweight,” 2 as “hold,” and 0 as “sell.”
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The public float for RPRX is 379.03M, and currently, shorts hold a 3.84% of that float. The average trading volume for RPRX on November 13, 2024 was 2.23M shares.
RPRX’s Market Performance
RPRX stock saw a decrease of -5.59% in the past week, with a monthly decline of -6.71% and a quarterly a decrease of -2.44%. The volatility ratio for the week is 3.29%, and the volatility levels for the last 30 days are 1.90% for Royalty Pharma plc (RPRX). The simple moving average for the past 20 days is -4.26% for RPRX’s stock, with a -7.54% simple moving average for the past 200 days.
Analysts’ Opinion of RPRX
Many brokerage firms have already submitted their reports for RPRX stocks, with UBS repeating the rating for RPRX by listing it as a “Neutral.” The predicted price for RPRX in the upcoming period, according to UBS is $28 based on the research report published on June 03, 2024 of the current year 2024.
UBS, on the other hand, stated in their research note that they expect to see RPRX reach a price target of $47. The rating they have provided for RPRX stocks is “Buy” according to the report published on June 14th, 2022.
Scotiabank gave a rating of “Sector Outperform” to RPRX, setting the target price at $53 in the report published on May 13th of the previous year.
RPRX Trading at -6.02% from the 50-Day Moving Average
After a stumble in the market that brought RPRX to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -17.86% of loss for the given period.
Volatility was left at 1.90%, however, over the last 30 days, the volatility rate increased by 3.29%, as shares sank -6.61% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -9.97% lower at present.
During the last 5 trading sessions, RPRX fell by -5.59%, which changed the moving average for the period of 200-days by -10.50% in comparison to the 20-day moving average, which settled at $27.16. In addition, Royalty Pharma plc saw -7.44% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at RPRX starting from RIGGS RORY B, who sale 235,200 shares at the price of $28.52 back on Jan 02 ’24. After this action, RIGGS RORY B now owns 254,899 shares of Royalty Pharma plc, valued at $6,707,081 using the latest closing price.
RIGGS RORY B, the Director of Royalty Pharma plc, sale 199,098 shares at $27.79 during a trade that took place back on Jan 03 ’24, which means that RIGGS RORY B is holding 55,801 shares at $5,532,276 based on the most recent closing price.
Stock Fundamentals for RPRX
Current profitability levels for the company are sitting at:
- 0.68 for the present operating margin
- 0.71 for the gross margin
The net margin for Royalty Pharma plc stands at 0.51. The total capital return value is set at 0.09. Equity return is now at value 17.62, with 6.76 for asset returns.
Based on Royalty Pharma plc (RPRX), the company’s capital structure generated 0.43 points at debt to capital in total, while cash flow to debt ratio is standing at 0.37. The debt to equity ratio resting at 0.74. The interest coverage ratio of the stock is 7.47.
Currently, EBITDA for the company is 1.89 billion with net debt to EBITDA at 4.31. When we switch over and look at the enterprise to sales, we see a ratio of 8.04. The receivables turnover for the company is 2.87for trailing twelve months and the total asset turnover is 0.13. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.54.
Conclusion
In conclusion, Royalty Pharma plc (RPRX) has had a bad performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
