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How to buy Royalty Pharma stock

Own Royalty Pharma stock in just a few minutes.

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Royalty Pharma plc is a biotechnology business based in the US. Royalty Pharma shares (RPRX) are listed on the NASDAQ and all prices are listed in US Dollars.

How to buy shares in Royalty Pharma

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Royalty Pharma Find the stock by name or ticker symbol: RPRX. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Royalty Pharma reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Royalty Pharma, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Royalty Pharma. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Royalty Pharma share price

Use our graph to track the performance of RPRX stocks over time.

Royalty Pharma shares at a glance

Information last updated 2020-10-19.
52-week rangeUSD$28 - USD$56.5
50-day moving average USD$41.6628
200-day moving average USD$43.8132
Wall St. target priceUSD$52.67
PE ratio 36.1797
Dividend yield USD$0.6 (1.44%)
Earnings per share (TTM) USD$-0.621

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Royalty Pharma stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Is Royalty Pharma under- or over-valued?

Valuing Royalty Pharma stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Royalty Pharma's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Royalty Pharma's P/E ratio

Royalty Pharma's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 36x. In other words, Royalty Pharma shares trade at around 36x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

However, Royalty Pharma's P/E ratio is best considered in relation to those of others within the biotechnology industry or those of similar companies.

Royalty Pharma's EBITDA

Royalty Pharma's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$2.7 billion.

The EBITDA is a measure of a Royalty Pharma's overall financial performance and is widely used to measure a its profitability.

To put Royalty Pharma's EBITDA into context you can compare it against that of similar companies.

Royalty Pharma financials

Revenue TTM USD$1.9 billion
Operating margin TTM 136.29%
Gross profit TTM USD$2.8 billion
Return on assets TTM 0%
Return on equity TTM 0%
Profit margin 121.16%
Book value $-0.033
Market capitalisation USD$25.4 billion

TTM: trailing 12 months

Shorting Royalty Pharma shares

There are currently 4.6 million Royalty Pharma shares held short by investors – that's known as Royalty Pharma's "short interest". This figure is 13.6% up from 4.0 million last month.

There are a few different ways that this level of interest in shorting Royalty Pharma shares can be evaluated.

Royalty Pharma's "short interest ratio" (SIR)

Royalty Pharma's "short interest ratio" (SIR) is the quantity of Royalty Pharma shares currently shorted divided by the average quantity of Royalty Pharma shares traded daily (recently around 754593.42105263). Royalty Pharma's SIR currently stands at 6.08. In other words for every 100,000 Royalty Pharma shares traded daily on the market, roughly 6080 shares are currently held short.

To gain some more context, you can compare Royalty Pharma's short interest ratio against those of similar companies.

However Royalty Pharma's short interest can also be evaluated against the total number of Royalty Pharma shares, or, against the total number of tradable Royalty Pharma shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Royalty Pharma's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Royalty Pharma shares in existence, roughly 10 shares are currently held short) or 0.0263% of the tradable shares (for every 100,000 tradable Royalty Pharma shares, roughly 26 shares are currently held short).

A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against Royalty Pharma.

Find out more about how you can short Royalty Pharma stock.

Royalty Pharma share dividends

21%

Dividend payout ratio: 20.55% of net profits

Recently Royalty Pharma has paid out, on average, around 20.55% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.44% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Royalty Pharma shareholders could enjoy a 1.44% return on their shares, in the form of dividend payments. In Royalty Pharma's case, that would currently equate to about $0.6 per share.

While Royalty Pharma's payout ratio might seem low, this can signify that Royalty Pharma is investing more in its future growth.

Royalty Pharma's most recent dividend payout was on 15 December 2020. The latest dividend was paid out to all shareholders who bought their shares by 14 September 2020 (the "ex-dividend date").

Royalty Pharma's dividend payout ratio is perhaps best considered in relation to those of similar companies.

Royalty Pharma overview

Royalty Pharma plc operates in the biopharmaceutical industry. The company operates as a buyer of biopharmaceutical royalties and a funder of innovation in the biopharmaceutical industry. It is involved in the identification, evaluation, and acquisition of royalties and royalty-related assets on various biopharmaceutical therapies. The company collaborates with innovators from academic institutions, research hospitals and not-for-profits, small and mid-cap biotechnology companies, and pharmaceutical companies. Its portfolio includes royalties on approximately 45 commercial products and three development-stage product candidates. The company has royalties on various therapeutic areas and drug classes, including Neulasta, Neupogen, Rituxan, Imbruvica, Trodelvy, Tazverik, and Xtandi in oncology; Lyrica in neuropathic pain; Biktarvy, Genvoya, Prezista, Symtuza, Truvada, and Atripla in HIV; Humira, Remicade, and Cimzia TNF inhibitors; Kalydeco, Orkambi, Symdeko, and Trikafta in cystic fibrosis; Tecfidera and Tysabri in multiple sclerosis; Emgality, Nurtec ODT (rimegepant), and vazegepant in migraine; and others. Royalty Pharma plc was founded in 1996 and is based in New York, New York.

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