Shares of OR Royalties Inc. (NYSE:OR) have garnered a consensus rating of “Moderate Buy” from nine analysts covering the stock, according to MarketBeat.com. The analysis highlights a split in ratings, with three investment analysts designating the stock as a hold, five issuing buy ratings, and one assigning a strong buy rating. The average one-year price target set by analysts who have updated their evaluations in the past year stands at $35.75.
Several research firms have provided insights regarding OR Royalties in recent months. On October 22, Canaccord Genuity Group upgraded the company from a “hold” to a “strong-buy” rating. Following this, Weiss Ratings reaffirmed a “buy (b)” rating on December 29. Conversely, Zacks Research downgraded the stock from a “strong-buy” to a “hold” on December 19. On November 6, Raymond James Financial raised its rating from “market perform” to “outperform,” setting an ambitious price target of $41.00. Meanwhile, Scotiabank adjusted its rating from “outperform” to “sector perform,” increasing its price target from $33.00 to $41.00 on October 23.
Recent Earnings and Dividend Announcement
OR Royalties recently released its quarterly earnings on November 5. The basic materials company reported earnings of $0.22 per share, surpassing the consensus estimate of $0.19 by $0.03. The company achieved a return on equity of 10.67% and a net margin of 60.72%. Revenue for the quarter reached $71.63 million, significantly exceeding the analyst estimates of $53.85 million. Looking ahead, analysts forecast that OR Royalties may post an average earnings per share of $0.62 for the current fiscal year.
In addition to its financial performance, OR Royalties has announced a quarterly dividend to be paid on January 15, 2024. Shareholders on record as of December 31 will receive a dividend of $0.055 per share, representing an annualized dividend of $0.22 and a dividend yield of 0.5%. The company’s dividend payout ratio stands at 27.85%.
Institutional Investor Activity
Recent trading activity indicates heightened interest from institutional investors and hedge funds in OR Royalties. Van ECK Associates Corp increased its stake in the company by 20.5% during the third quarter, now holding 15,561,057 shares valued at approximately $623.69 million after acquiring an additional 2,650,333 shares. Similarly, Vanguard Group Inc. boosted its holdings by 3.1%, now owning 7,679,045 shares worth around $307.78 million.
In a notable move, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position by 39.2%, owning 7,543,667 shares valued at about $302.42 million. Picton Mahoney Asset Management also acquired a new position in the second quarter valued at approximately $96.62 million. Additionally, Tidal Investments LLC raised its stake by 25.4%, now holding 2,347,760 shares valued at about $94.10 million. Currently, institutional investors and hedge funds collectively own 68.52% of OR Royalties’ stock.
About OR Royalties Inc.
OR Royalties PLC (NYSE:OR) is a closed-ended investment company focused on acquiring and managing royalty interests in life sciences and pharmaceutical products. The company provides capital to biotechnology, specialty pharmaceutical, and medical device companies in exchange for a share of future sales revenues. By concentrating on royalties secured against marketed products, OR Royalties aims to minimize the risks associated with direct equity stakes while delivering both income and growth potential. The company’s operations include sourcing royalty transactions, structuring tailored financing solutions, and actively managing a diversified portfolio of assets.
