Royalty Pharma Stock (NASDAQ:RPRX), Trade Ideas

Royalty Pharma

Royalty Pharma PLC is the largest buyer of biopharmaceutical royalties. The firm has a portfolio of royalties that entitles it to payments based on the sales of biopharma products. Royalty Pharma receives royalties on more than 35 commercial products, including AbbVie and Johnson & Johnson's Imbruvica (for chronic lymphocytic leukemia and other blood cancers), Biogen's Tysabri (for relapsing forms of multiple sclerosis), Vertex's cystic fibrosis franchise, and 10 development-stage product candidates.

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Royalty Pharma plc - Class A Ordinary Shares

Royalty Pharma PLC

B of A Securities analyst Geoff Meacham maintains Royalty Pharma (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RPRX#NASDAQ">RPRX</a>) with a Buy and lowers the price target from $40 to $38.

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B of A Securities Maintains Buy on Royalty Pharma, Lowers Price Target to $38

Royalty Pharma's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RPRX#NYSE">RPRX</a>) short percent of float has fallen 3.91% since its last report. The company recently reported that it has 12.65 million shares sold short, which is 2.95% of all regular shares that are available for trading. Based on its trading volume, it would take traders 5.01 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Royalty Pharma Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1712243721_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Royalty Pharma has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Royalty Pharma's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Royalty Pharma's peer group average for short interest as a percentage of float is 3.99%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

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Looking Into Royalty Pharma's Recent Short Interest

Royalty Pharma (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RPRX#NASDAQ">RPRX</a>) reported quarterly sales of $596.00 million which missed the analyst consensus estimate of $673.65 million by 11.53 percent. This is a 5.30 percent increase over sales of $566.00 million the same period last year.

Earnings

Royalty Pharma Q4 Sales $596.00M Miss $673.65M Estimate, Net Income Attributable To Royalty Pharma $494M Versus Loss Of $(456)M Year Ago

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Earnings Scheduled For February 15, 2024

Royalty Pharma (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RPRX#NASDAQ">RPRX</a>) is set to give its latest quarterly earnings report on Thursday, 2024-02-15. Here's what investors need to know before the announcement.
Analysts estimate that Royalty Pharma will report an earnings per share (EPS) of $0.99. 
Royalty Pharma bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Past Earnings Performance</h3>
Last quarter the company beat EPS by $0.02, which was followed by a 0.76% drop in the share price the next day.
Here's a look at Royalty Pharma's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2023</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.77</td>
<td>0.83</td>
<td>1.27</td>
<td>1.52</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.79</td>
<td>0.84</td>
<td>1.60</td>
<td>1.56</td>
</tr>
<tr>
<td>Price Change %</td>
<td>-0.76%</td>
<td>0.0%</td>
<td>-0.38%</td>
<td>-1.19%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1707919246_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Royalty Pharma were trading at $29.31 as of February 12. Over the last 52-week period, shares are down 21.29%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release. 
<a href="https://www.benzinga.com/quote/RPRX/earnings">To track all earnings releases for Royalty Pharma visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Royalty Pharma's Earnings: A Preview

Dividends

CORRECTION: Royalty Pharma Announces Quarterly Dividend Increase From $0.20 To $0.21

Reflecting a 5% increase in the company's quarterly dividend over the previous quarter's dividend.&nbsp;
Reflecting a 5% increase in the company's quarterly dividend over the previous quarter's dividend. &nbsp;

Royalty Pharma Announces Quarterly Dividend Increase From $0.20 To $0.21

MSCI

Watching MSCI Inc.; Spruce Point Capital Management Announces Investment Opinion Entitled "Indexing The Short Case Against MSCI"; Says The Co Could Face Up To 55%-65% Long-Term Downside Risk, Or $190.00–$244.00 Per Share

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Royalty Pharma Expects To Deliver Portfolio Receipts For FY23 Of Approximately $3.05B, Which Includes A $50M Payment Related To Oral Zavegepant And Exceeds The Upper End Of Its Previous Guidance Range Of $2.95B-$3B

TEVA

Teva And Royalty Pharma Announce Collaboration To Further Accelerate Olanzapine LAI Program; Royalty To Provide R&D Funding Support Of Up To $125M For Development Of Olanzapine LAI

Morgan Stanley analyst Terence Flynn maintains Royalty Pharma (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RPRX#NASDAQ">RPRX</a>) with a Overweight and raises the price target from $54 to $57.

Morgan Stanley Maintains Overweight on Royalty Pharma, Raises Price Target to $57

Royalty Pharma Sees FY23 Adj. Cash Receipts $2.95B-$3B

Royalty Pharma Q3 2023 EPS Adj. Cash Receipts $637M May Not Compare To $617.989M Estimate

Royalty Pharma (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RPRX#NASDAQ">RPRX</a>) is set to give its latest quarterly earnings report on Wednesday, 2023-11-08. Here's what investors need to know before the announcement.
Analysts estimate that Royalty Pharma will report an earnings per share (EPS) of $0.77. 
Royalty Pharma bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Historical Earnings Performance</h3>
Last quarter the company beat EPS by $0.01, which was followed by a 0.0% drop in the share price the next day.
Here's a look at Royalty Pharma's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
<th>Q3 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.83</td>
<td>1.27</td>
<td>1.52</td>
<td>0.71</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.84</td>
<td>1.60</td>
<td>1.56</td>
<td>0.32</td>
</tr>
<tr>
<td>Price Change %</td>
<td>0.0%</td>
<td>-0.38%</td>
<td>-1.19%</td>
<td>0.8%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2023/1699365658_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Royalty Pharma were trading at $27.78 as of November 03. Over the last 52-week period, shares are down 35.44%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release. 
<a href="https://www.benzinga.com/quote/RPRX/earnings">To track all earnings releases for Royalty Pharma visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Royalty Pharma's Earnings Outlook

The agreement includes options for PTC to sell up to all of its retained royalties on Evrysdi for up to $500 million or for Royalty Pharma to acquire half of such retained royalties for up to $250 million at a later date. PTC maintains all economics associated with up to $250 million in remaining commercial sales milestones associated with Evrysdi global net sales.&nbsp; 
&nbsp;

Contracts

PTCT

PTC Therapeutics Announced An Agreement With Royalty Pharma To Monetize Up To $1.5B Of The Evrysdi Royalty Stream. Under The Agreement, Royalty Pharma Acquires Additional Royalties On Evrysdi For $1B Upfront

Morgan Stanley analyst Terence Flynn maintains Royalty Pharma (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RPRX#NASDAQ">RPRX</a>) with a Overweight and raises the price target from $53 to $54.

Morgan Stanley Maintains Overweight on Royalty Pharma, Raises Price Target to $54