Stock Traders Buy High Volume of Put Options on Royalty Pharma (NASDAQ:RPRX)

Royalty Pharma plc (NASDAQ:RPRX) was the recipient of some unusual options trading activity on Thursday. Stock traders acquired 4,237 put options on the stock. This is an increase of 344% compared to the typical volume of 954 put options.

Analyst Ratings Changes

Separately, TD Cowen raised shares of Royalty Pharma to a “strong-buy” rating in a research report on Tuesday, December 24th. One equities research analyst has rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and an average target price of $41.60.

Royalty Pharma Price Performance

Shares of RPRX traded down $0.13 during mid-day trading on Thursday, reaching $31.43. The stock had a trading volume of 3,108,475 shares, compared to its average volume of 2,899,845. The firm has a market cap of $18.12 billion, a price-to-earnings ratio of 21.71, a PEG ratio of 2.31 and a beta of 0.47. Royalty Pharma has a 12 month low of $24.05 and a 12 month high of $34.20. The business has a fifty day moving average of $32.42 and a 200 day moving average of $28.80. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.44 and a current ratio of 1.44.

Royalty Pharma (NASDAQ:RPRX) last issued its quarterly earnings results on Tuesday, February 11th. The biopharmaceutical company reported $1.15 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.99 by $0.16. Royalty Pharma had a return on equity of 24.40% and a net margin of 37.94%. Equities analysts predict that Royalty Pharma will post 4.49 EPS for the current year.

Royalty Pharma Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 10th. Shareholders of record on Friday, February 21st were issued a dividend of $0.22 per share. This is a positive change from Royalty Pharma’s previous quarterly dividend of $0.21. This represents a $0.88 dividend on an annualized basis and a yield of 2.80%. The ex-dividend date was Friday, February 21st. Royalty Pharma’s dividend payout ratio (DPR) is 60.69%.

Hedge Funds Weigh In On Royalty Pharma

Several hedge funds have recently modified their holdings of the stock. Advisors Asset Management Inc. purchased a new position in Royalty Pharma during the 3rd quarter valued at approximately $359,000. Charles Schwab Investment Management Inc. increased its position in Royalty Pharma by 58.1% in the third quarter. Charles Schwab Investment Management Inc. now owns 3,001,603 shares of the biopharmaceutical company’s stock worth $84,915,000 after purchasing an additional 1,103,341 shares during the last quarter. Cerity Partners LLC raised its stake in Royalty Pharma by 11.1% during the third quarter. Cerity Partners LLC now owns 32,896 shares of the biopharmaceutical company’s stock valued at $931,000 after purchasing an additional 3,291 shares in the last quarter. Daiwa Securities Group Inc. lifted its position in Royalty Pharma by 10.8% during the third quarter. Daiwa Securities Group Inc. now owns 30,694 shares of the biopharmaceutical company’s stock valued at $868,000 after purchasing an additional 3,000 shares during the last quarter. Finally, Bank of Montreal Can grew its stake in shares of Royalty Pharma by 186.0% in the 3rd quarter. Bank of Montreal Can now owns 445,937 shares of the biopharmaceutical company’s stock worth $12,580,000 after buying an additional 290,019 shares in the last quarter. Hedge funds and other institutional investors own 54.35% of the company’s stock.

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.