Palo Alto Investors LP Makes New Investment in United Therapeutics Corporation $UTHR

Key Points

• Palo Alto Investors LP acquired 62,587 shares of United Therapeutics in the second quarter, worth approximately $33.9 million and representing about 0.15% of the company. Institutional investors collectively own 94.08% of UTHR.
• Analysts remain broadly positive, with 11 Buy ratings and two Holds producing a consensus “Moderate Buy” rating and an average price target of $646, despite some recent target-price reductions.
• United Therapeutics beat quarterly earnings expectations with EPS of $7.27 versus $6.86 forecast, but revenue fell 1.9% year over year to $783.3 million. The stock recently traded down 2.4% to $515.46, while insiders have sold more than $227 million of shares over the past three months.

Palo Alto Investors LP purchased a new stake in United Therapeutics Corporation (NASDAQ:UTHR - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 62,587 shares of the biotechnology company's stock, valued at approximately $33,911,514. United Therapeutics comprises about 0.0% of Palo Alto Investors LP's investment portfolio, making the stock its 8th biggest position. Palo Alto Investors LP owned about 0.15% of United Therapeutics at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in the company. Geneos Wealth Management Inc. raised its position in United Therapeutics by 141.7% during the first quarter. Geneos Wealth Management Inc. now owns 145 shares of the biotechnology company's stock valued at $45,000 after acquiring an additional 85 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in United Therapeutics by 18.8% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 443 shares of the biotechnology company's stock valued at $127,000 after purchasing an additional 70 shares in the last quarter. Jump Financial LLC bought a new position in shares of United Therapeutics in the second quarter valued at approximately $277,000. Cerity Partners LLC grew its position in shares of United Therapeutics by 77.3% in the 2nd quarter. Cerity Partners LLC now owns 12,843 shares of the biotechnology company's stock worth $3,691,000 after buying an additional 5,600 shares during the last quarter. Finally, Bank of Nova Scotia increased its holdings in United Therapeutics by 6.9% during the second quarter. Bank of Nova Scotia now owns 1,628 shares of the biotechnology company's stock valued at $468,000 after buying an additional 105 shares during the last quarter. 94.08% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several analysts have recently issued reports on the stock. JPMorgan Chase & Co. lifted their target price on shares of United Therapeutics from $685.00 to $687.00 and gave the company an "overweight" rating in a research report on Thursday, July 23rd. Wells Fargo & Company upgraded shares of United Therapeutics from an "equal weight" rating to an "overweight" rating and raised their price target for the company from $575.00 to $735.00 in a report on Thursday, May 7th. Royal Bank Of Canada reduced their price target on shares of United Therapeutics from $704.00 to $677.00 and set an "outperform" rating for the company in a report on Thursday, August 6th. Bank of America cut their target price on United Therapeutics from $620.00 to $613.00 and set a "neutral" rating on the stock in a research report on Friday, July 10th. Finally, TD Cowen reaffirmed a "buy" rating on shares of United Therapeutics in a research note on Thursday, May 21st. Eleven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $646.00.

United Therapeutics Trading Down 2.4%

NASDAQ UTHR traded down $12.45 during trading on Friday, reaching $515.46. 266,869 shares of the company's stock were exchanged, compared to its average volume of 488,708. The company's fifty day simple moving average is $530.89 and its 200-day simple moving average is $538.86. The firm has a market capitalization of $22.11 billion, a PE ratio of 18.44, a P/E/G ratio of 1.75 and a beta of 0.59. United Therapeutics Corporation has a fifty-two week low of $303.08 and a fifty-two week high of $609.35.

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 for the quarter, beating the consensus estimate of $6.86 by $0.41. United Therapeutics had a net margin of 41.56% and a return on equity of 20.18%. The company had revenue of $783.30 million for the quarter, compared to analyst estimates of $804.65 million. During the same period in the prior year, the firm earned $6.41 earnings per share. The company's revenue was down 1.9% on a year-over-year basis. Equities analysts forecast that United Therapeutics Corporation will post 26.33 EPS for the current fiscal year.

Insiders Place Their Bets

In other United Therapeutics news, EVP Paul A. Mahon sold 8,300 shares of the firm's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $523.14, for a total transaction of $4,342,062.00. Following the transaction, the executive vice president owned 45,172 shares of the company's stock, valued at approximately $23,631,280.08. This trade represents a 15.52% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Martine A. Rothblatt sold 9,500 shares of the stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $517.28, for a total transaction of $4,914,160.00. Following the sale, the chief executive officer owned 324,443 shares of the company's stock, valued at $167,827,875.04. This trade represents a 2.84% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 424,075 shares of company stock worth $227,336,485 over the last three months. 8.60% of the stock is currently owned by insiders.

United Therapeutics Company Profile

United Therapeutics Corporation NASDAQ: UTHR is a biotechnology company dedicated to the development and commercialization of unique products to address life-threatening illnesses. The company's primary focus has been on pulmonary arterial hypertension (PAH), where it has launched several therapies designed to improve functional capacity and quality of life for patients. Its marketed products include continuous infusion treprostinil (Remodulin), inhaled treprostinil (Tyvaso), oral treprostinil (Orenitram) and tadalafil (Adcirca), each tailored to different modes of administration and patient needs.

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