Summit Street Capital Management LLC Invests $28.60 Million in United Therapeutics Corporation $UTHR

Key Points

• Summit Street Capital Management acquired 52,789 United Therapeutics shares worth approximately $28.6 million, making UTHR about 4% of its portfolio and its fifth-largest holding. Institutional investors and hedge funds collectively own 94.08% of the company.
• Analysts maintain a generally positive view, with 11 Buy ratings and two Holds, producing a “Moderate Buy” consensus and an average price target of $646. Wells Fargo upgraded the stock to Overweight with a $735 target.
• United Therapeutics exceeded quarterly earnings expectations, reporting $7.27 in EPS versus the $6.86 consensus, although revenue of $783.3 million fell short of estimates and declined 1.9% year over year. Meanwhile, insiders sold approximately $227.7 million of stock over the past 90 days.

Summit Street Capital Management LLC acquired a new stake in United Therapeutics Corporation (NASDAQ:UTHR - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm acquired 52,789 shares of the biotechnology company's stock, valued at approximately $28,603,000. United Therapeutics comprises about 4.0% of Summit Street Capital Management LLC's investment portfolio, making the stock its 5th biggest holding. Summit Street Capital Management LLC owned about 0.12% of United Therapeutics at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Freestone Grove Partners LP acquired a new stake in shares of United Therapeutics in the second quarter valued at approximately $654,000. Caisse de depot et placement du Quebec acquired a new position in shares of United Therapeutics during the second quarter worth approximately $154,304,000. Gallagher Fiduciary Advisors LLC acquired a new position in shares of United Therapeutics during the second quarter worth approximately $307,000. Odyssean LLC grew its holdings in United Therapeutics by 76.4% in the 2nd quarter. Odyssean LLC now owns 5,445 shares of the biotechnology company's stock worth $2,950,000 after buying an additional 2,358 shares in the last quarter. Finally, Man Group plc bought a new position in United Therapeutics in the 2nd quarter worth approximately $73,087,000. 94.08% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several analysts have weighed in on the company. Morgan Stanley set a $515.00 target price on United Therapeutics in a research note on Thursday, August 6th. Wells Fargo & Company raised 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. JPMorgan Chase & Co. lifted their price objective on shares of United Therapeutics from $685.00 to $687.00 and gave the company an "overweight" rating in a research note on Thursday, July 23rd. Bank of America reduced their price objective on shares of United Therapeutics from $620.00 to $613.00 and set a "neutral" rating for the company in a report on Friday, July 10th. Finally, Royal Bank Of Canada decreased their target price on shares of United Therapeutics from $704.00 to $677.00 and set an "outperform" rating for the company in a research report on Thursday, August 6th. Eleven analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, United Therapeutics presently has an average rating of "Moderate Buy" and an average price target of $646.00.

United Therapeutics Stock Performance

UTHR opened at $516.68 on Thursday. United Therapeutics Corporation has a one year low of $302.19 and a one year high of $609.35. The stock's fifty day moving average is $531.06 and its 200-day moving average is $538.56. The company has a market capitalization of $22.16 billion, a PE ratio of 18.49, a P/E/G ratio of 1.76 and a beta of 0.59.

United Therapeutics (NASDAQ:UTHR - Get Free Report) last announced its earnings results 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. The business had revenue of $783.30 million during the quarter, compared to analysts' expectations of $804.65 million. United Therapeutics had a return on equity of 20.18% and a net margin of 41.56%.The company's quarterly revenue was down 1.9% on a year-over-year basis. During the same quarter last year, the business posted $6.41 earnings per share. On average, equities research analysts forecast that United Therapeutics Corporation will post 26.33 EPS for the current fiscal year.

Insider Activity

In related news, CEO Martine A. Rothblatt sold 9,500 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $547.61, for a total transaction of $5,202,295.00. Following the completion of the sale, the chief executive officer directly owned 40,513 shares of the company's stock, valued at $22,185,323.93. This represents a 19.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO James Edgemond sold 10,000 shares of the firm's stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $546.28, for a total transaction of $5,462,800.00. Following the sale, the chief financial officer owned 18,876 shares of the company's stock, valued at $10,311,581.28. The trade was a 34.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 424,075 shares of company stock valued at $227,683,710. Insiders own 8.60% of the company's stock.

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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