Royalty Pharma plc (RPRX) shares are trading at lower $36.12 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $52.67.
To add more color to this target, the company’s high over the last year is $56.50 and the low is $37.65 while the S&P 500 is up 7.73%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, RPRX reported a profit of $101.59 million. Royalty Pharma plc also saw revenues increase to $510.93 million. In addition, RPRX has free cash flow of $385.49 million as of 06-2020. The company’s EBITDA came in at $409.35 million which compares well with its peers.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. RPRX has a short ratio of 5.65 and outstanding shares of 353.98M.
RPRX has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at 3.17. Royalty Pharma plc RPRX also noted assets of $15.69 billion at the end of the last quarter. Investors should also keep an eye on sector updates as RPRX has historically followed its peers on positive news.
All told, Royalty Pharma plc RPRX has strung together solid data and demonstrated underlying fundamentals. At its current valuation, RPRX represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Royalty Pharma plc RPRX is now commanding a market cap of 22.04B and a float of 56.78M. RPRX is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of RPRX stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in RPRX, either long or short, and we have not been compensated for this article.