United Therapeutics (NASDAQ:UTHR) Stock Price Target Lowered at JPMorgan Chase & Co.

Key Points

• JPMorgan lowered United Therapeutics’ price target from $710 to $695 while maintaining an “overweight” rating, implying 18.55% potential upside from the prior close.
• Analyst sentiment remains broadly positive: 12 analysts rate UTHR a Buy, two rate it Hold, and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $667.07.
• The company approved a $2 billion share-repurchase program, covering up to 8.3% of outstanding shares; its latest quarter also exceeded EPS expectations, though revenue declined 1.9% year over year.

United Therapeutics (NASDAQ:UTHR - Get Free Report) had its target price dropped by analysts at JPMorgan Chase & Co. from $710.00 to $695.00 in a note issued to investors on Wednesday, Benzinga reports. The firm currently has an "overweight" rating on the biotechnology company's stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 18.55% from the company's previous close.

UTHR has been the topic of a number of other reports. Jefferies Financial Group reiterated a "buy" rating and issued a $728.00 target price on shares of United Therapeutics in a research note on Wednesday, October 14th. Weiss Ratings cut United Therapeutics from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, August 27th. Raymond James Financial reissued an "outperform" rating and set a $717.00 price objective on shares of United Therapeutics in a report on Tuesday, October 20th. Royal Bank Of Canada reduced their price objective on United Therapeutics from $708.00 to $697.00 and set an "outperform" rating on the stock in a research note on Thursday, October 22nd. Finally, The Goldman Sachs Group restated a "sell" rating and issued a $368.00 price objective on shares of United Therapeutics in a research report on Thursday, October 15th. Twelve analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, United Therapeutics presently has a consensus rating of "Moderate Buy" and an average price target of $667.07.

United Therapeutics Price Performance

Shares of UTHR traded down $4.94 during trading hours on Wednesday, hitting $586.26. The stock had a trading volume of 195,317 shares, compared to its average volume of 555,670. United Therapeutics has a 1-year low of $415.26 and a 1-year high of $609.35. The firm has a 50 day simple moving average of $522.90 and a 200-day simple moving average of $528.93. The firm has a market capitalization of $25.14 billion, a P/E ratio of 20.95, a price-to-earnings-growth ratio of 4.26 and a beta of 0.49.

United Therapeutics (NASDAQ:UTHR - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The biotechnology company reported $7.27 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.86 by $0.41. United Therapeutics had a net margin of 41.56% and a return on equity of 20.18%. The firm had revenue of $783.30 million during the quarter, compared to analysts' expectations of $804.65 million. During the same period last year, the company earned $6.41 earnings per share. The business's revenue was down 1.9% on a year-over-year basis. Equities analysts predict that United Therapeutics will post 26.07 EPS for the current fiscal year.

United Therapeutics announced that its board has approved a stock repurchase plan on Thursday, October 22nd that allows the company to buy back $2 billion in shares. This buyback authorization allows the biotechnology company to repurchase up to 8.3% of its shares through open market purchases. Share buyback plans are usually an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at United Therapeutics

In related news, CEO Martine Rothblatt sold 9,500 shares of the stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $526.96, for a total transaction of $5,006,120.00. Following the transaction, the chief executive officer owned 324,443 shares in the company, valued at $170,968,483.28. This represents a 2.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders have sold 401,528 shares of company stock worth $209,465,456 over the last three months. 8.60% of the stock is owned by insiders.

Hedge Funds Weigh In On United Therapeutics

Institutional investors and hedge funds have recently made changes to their positions in the business. Callan Family Office LLC purchased a new position in United Therapeutics in the second quarter valued at about $1,217,000. Andra AP fonden raised its stake in shares of United Therapeutics by 33.5% during the 2nd quarter. Andra AP fonden now owns 34,904 shares of the biotechnology company's stock worth $18,912,000 after acquiring an additional 8,760 shares in the last quarter. Canada Pension Plan Investment Board acquired a new stake in United Therapeutics in the second quarter valued at approximately $3,359,000. Partners Capital Investment Group LLP purchased a new position in United Therapeutics in the second quarter worth $1,691,000. Finally, Palo Alto Investors LP acquired a new position in shares of United Therapeutics during the second quarter worth $33,911,514. Hedge funds and other institutional investors own 94.08% of the company's stock.

United Therapeutics Company Profile

United Therapeutics Corporation is a biotechnology company focused on developing and commercializing therapies for patients with life-threatening conditions, particularly pulmonary arterial hypertension (PAH). The company's portfolio includes Tyvaso and Tyvaso DPI, inhaled formulations of treprostinil; Remodulin, an injectable treprostinil product; and Orenitram, an oral treprostinil therapy. These treatments are designed to improve exercise ability and delay disease progression in people with PAH.

The company also markets Unituxin, an antibody therapy used as part of treatment for high-risk neuroblastoma, a type of childhood cancer.

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