Royalty Pharma Plc Stock Buy Hold or Sell Recommendation

RPRX Stock  USD 32.77  0.09  0.28%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Royalty Pharma Plc is 'Strong Buy'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell Royalty Pharma Plc given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for Royalty Pharma Plc, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Royalty Pharma Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Royalty and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Royalty Pharma Plc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.

Execute Royalty Pharma Buy or Sell Advice

The Royalty recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Royalty Pharma Plc. Macroaxis does not own or have any residual interests in Royalty Pharma Plc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Royalty Pharma's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Royalty PharmaBuy Royalty Pharma
Strong Buy

Market Performance

SolidDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Moves indifferently to market movesDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Royalty Pharma Plc has a Risk Adjusted Performance of 0.1831, Jensen Alpha of 0.3572, Total Risk Alpha of 0.6079, Sortino Ratio of 0.4657 and Treynor Ratio of (2.58)
Our advice module can be used to complement Royalty Pharma recommendation provided by average analyst sentiment. It analyzes the firm's potential to grow using fundamental, technical, data market data available at the time. To make sure Royalty Pharma is not overpriced, please check all Royalty Pharma Plc fundamentals, including its short ratio, and the relationship between the cash per share and total asset . Given that Royalty Pharma Plc has a price to earning of 37.70 X, we recommend you to check out Royalty Pharma Plc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Royalty Pharma Trading Alerts and Improvement Suggestions

Over 77.0% of the company shares are owned by institutional investors
Latest headline from zacks.com: Why Is Euronet Worldwide Down 2.9 percent Since Last Earnings Report

Royalty Pharma Returns Distribution Density

The distribution of Royalty Pharma's historical returns is an attempt to chart the uncertainty of Royalty Pharma's future price movements. The chart of the probability distribution of Royalty Pharma daily returns describes the distribution of returns around its average expected value. We use Royalty Pharma Plc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Royalty Pharma returns is essential to provide solid investment advice for Royalty Pharma.
Mean Return
0.38
Value At Risk
-1.53
Potential Upside
2.29
Standard Deviation
1.88
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Royalty Pharma historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Royalty Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument, such as Royalty Pharma, soars without any apparent reason? This usually happens because many institutional investors are aggressively trading Royalty Pharma Plc back and forth among themselves.
Shares
Two Sigma Advisers, Llc2024-12-31
3.7 M
Northern Trust Corp2024-12-31
3.3 M
Gmt Capital Corp2024-12-31
3.3 M
Deutsche Bank Ag2024-12-31
3.2 M
Charles Schwab Investment Management Inc2024-12-31
3.1 M
Bank Of America Corp2024-12-31
M
Newsouth Capital Management Inc2024-12-31
M
Citadel Advisors Llc2024-12-31
2.9 M
Patients Capital Management Llc2024-12-31
2.9 M
Morgan Stanley - Brokerage Accounts2024-12-31
39.5 M
Vanguard Group Inc2024-12-31
37.4 M
Note, although Royalty Pharma's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Royalty Pharma Cash Flow Accounts

202020212022202320242025 (projected)
Capital Expenditures269.6M1.7B2.2B523K2.0B2.1B
Change In Cash763M532.4M169.7M(1.2B)452.0M474.6M
Depreciation23.9M23.1M23.0M5.7M20.5M0.0
Net Income1.7B1.2B230.1M1.7B1.3B1.1B
Change To Netincome(978.6M)50.0M37.5M64.1M57.7M60.6M
End Period Cash Flow1.0B1.5B1.7B477.0M929.0M971.6M
Investments(3.1B)(1.8B)(1.2B)(657.9M)(2.7B)(2.5B)
Free Cash Flow4.2B2.0B4.2B3.0B2.8B2.6B
Other Non Cash Items2.1B2.3B1.9B1.3B1.4B1.8B
Dividends Paid397M285.2M333.3M358.3M376.5M403.9M

Royalty Pharma Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Royalty Pharma or Pharmaceuticals sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Royalty Pharma's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Royalty stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.36
β
Beta against Dow Jones-0.14
σ
Overall volatility
1.90
Ir
Information ratio 0.26

Royalty Pharma Volatility Alert

Royalty Pharma Plc has relatively low volatility with skewness of 4.24 and kurtosis of 27.22. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Royalty Pharma's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Royalty Pharma's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Royalty Pharma Fundamentals Vs Peers

Comparing Royalty Pharma's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Royalty Pharma's direct or indirect competition across all of the common fundamentals between Royalty Pharma and the related equities. This way, we can detect undervalued stocks with similar characteristics as Royalty Pharma or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Royalty Pharma's fundamental indicators could also be used in its relative valuation, which is a method of valuing Royalty Pharma by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Royalty Pharma to competition
FundamentalsRoyalty PharmaPeer Average
Return On Equity0.13-0.31
Return On Asset0.0467-0.14
Profit Margin0.38 %(1.27) %
Operating Margin0.61 %(5.51) %
Current Valuation20.04 B16.62 B
Shares Outstanding433.32 M571.82 M
Shares Owned By Insiders9.82 %10.09 %
Shares Owned By Institutions76.69 %39.21 %
Number Of Shares Shorted15.3 M4.71 M
Price To Earning37.70 X28.72 X
Price To Book2.04 X9.51 X
Price To Sales8.35 X11.42 X
Revenue2.26 B9.43 B
Gross Profit1.53 B27.38 B
EBITDA1.29 B3.9 B
Net Income1.33 B570.98 M
Cash And Equivalents1.47 B2.7 B
Cash Per Share3.34 X5.01 X
Total Debt7.61 B5.32 B
Debt To Equity0.68 %48.70 %
Current Ratio2.07 X2.16 X
Book Value Per Share15.58 X1.93 K
Cash Flow From Operations2.77 B971.22 M
Short Ratio2.84 X4.00 X
Earnings Per Share1.91 X3.12 X
Price To Earnings To Growth2.29 X4.89 X
Target Price40.92
Beta0.47-0.15
Market Capitalization18.89 B19.03 B
Total Asset18.22 B29.47 B
Retained Earnings2.85 B9.33 B
Working Capital548.52 M1.48 B
Current Asset10.66 M9.34 B
Note: Disposition of 30000 shares by Christopher Hite of Royalty Pharma subject to Rule 16b-3 [view details]

Royalty Pharma Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Royalty . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Royalty Pharma Buy or Sell Advice

When is the right time to buy or sell Royalty Pharma Plc? Buying financial instruments such as Royalty Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Additional Tools for Royalty Stock Analysis

When running Royalty Pharma's price analysis, check to measure Royalty Pharma's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Royalty Pharma is operating at the current time. Most of Royalty Pharma's value examination focuses on studying past and present price action to predict the probability of Royalty Pharma's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Royalty Pharma's price. Additionally, you may evaluate how the addition of Royalty Pharma to your portfolios can decrease your overall portfolio volatility.