The latest data from GuruFocus shows that CEO, Chairman of the Board, 10% Owner N/A bought 230000 shares of Royalty Pharma PLC (RPRX) on 2023-05-17.
When insiders buy shares of their company’s stock, it can often be a positive sign. It could signal that insiders are turning bullish on the future of their company. Insiders know far more about their company than the general public does, so it is worth paying attention to their trades. With this in mind, let’s take a look at this insider buy to see if Royalty Pharma PLC deserves the attention of investors.
Pablo Legorreta’s trades
Over the past year, Pablo Legorreta has purchased 0 shares in total.
This means that Pablo Legorreta has been buying their company’s stock over the long term. This could be a positive sign for the stock’s future.
Insider trends
Some investors may wonder whether one insider’s buys are that important. Are other insiders buying the stock as well, or are other insiders selling?
The insider transaction history for Royalty Pharma PLC shows than there have been 1 insiders buys in total over the past year. Meanwhile, there have been 39 insider sells over the same timeframe.
Although Pablo Legorreta has been buying shares recently, it seems that most of their peers are selling. However, insiders sell for many reasons. Maybe they need the cash, or maybe they are trying to lower their taxes. High insider selling could be a bad sign or a neutral sign, depending on the reason for the sales.
Valuation
Shares of Royalty Pharma PLC were trading for $33.69 apice on the day of Pablo Legorreta’s recent buy. This gives the stock a market cap of $15153.370 Millions.
The price-earnings ratio is 107.98, which is higher than the industry median of 30.45 and higher than the company’s historical median price-earnings ratio.
With a price of $33.69 and a GuruFocus Value $38.44, Royalty Pharma PLC has a price-to-GF-Value ratio of 0.88. This means the stock is Modestly Undervalued based on its GF Value.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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