Insider Selling: United Therapeutics (NASDAQ:UTHR) EVP Sells $4,689,085.00 in Stock

Key Points

• United Therapeutics EVP Paul Mahon sold 8,300 shares for approximately $4.69 million, reducing his ownership by 15.52% to 45,172 shares.
• UTHR shares rose 5.4% to $571.38, while the company reported quarterly EPS of $7.27—beating estimates—but revenue of $783.3 million fell short of expectations and declined 1.9% year over year.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $621; a federal court’s ruling upholding United Therapeutics’ patent claims against Liquidia also eased competitive concerns surrounding Tyvaso.

United Therapeutics Corporation (NASDAQ:UTHR - Get Free Report) EVP Paul Mahon sold 8,300 shares of the firm's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $564.95, for a total transaction of $4,689,085.00. Following the completion of the transaction, the executive vice president owned 45,172 shares in the company, valued at $25,519,921.40. The trade was a 15.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink.

United Therapeutics Trading Up 5.4%

UTHR traded up $29.49 during trading on Thursday, hitting $571.38. The stock had a trading volume of 1,691,487 shares, compared to its average volume of 538,503. The firm has a market cap of $24.51 billion, a PE ratio of 20.44, a P/E/G ratio of 2.41 and a beta of 0.56. United Therapeutics Corporation has a 12 month low of $409.07 and a 12 month high of $609.35. The company has a 50 day simple moving average of $509.19 and a 200-day simple moving average of $539.39.

United Therapeutics (NASDAQ:UTHR - Get Free Report) last released its quarterly earnings results 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. The company had revenue of $783.30 million during the quarter, compared to analysts' expectations of $804.65 million. United Therapeutics had a net margin of 41.56% and a return on equity of 20.18%. The business's quarterly revenue was down 1.9% compared to the same quarter last year. During the same period in the prior year, the company earned $6.41 earnings per share. As a group, sell-side analysts anticipate that United Therapeutics Corporation will post 26.21 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on UTHR. Royal Bank Of Canada lowered their target price on United Therapeutics from $704.00 to $677.00 and set an "outperform" rating on the stock in a report on Thursday, August 6th. Morgan Stanley set a $515.00 price target on United Therapeutics in a report on Thursday, August 6th. Bank of America reduced their price objective on United Therapeutics from $620.00 to $613.00 and set a "neutral" rating for the company in a research report on Friday, July 10th. The Goldman Sachs Group started coverage on shares of United Therapeutics in a research report on Thursday, September 24th. They set a "sell" rating and a $321.00 target price on the stock. Finally, Weiss Ratings cut shares of United Therapeutics from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, August 27th. Eleven equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $621.00.

Hedge Funds Weigh In On United Therapeutics

Several large investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in shares of United Therapeutics in the 2nd quarter worth approximately $2,868,735,000. Janus Henderson Group PLC increased its position in shares of United Therapeutics by 8.9% during the first quarter. Janus Henderson Group PLC now owns 866,930 shares of the biotechnology company's stock valued at $514,016,000 after purchasing an additional 70,829 shares during the period. Jupiter Topco LLC bought a new stake in shares of United Therapeutics during the second quarter valued at approximately $450,140,000. Norges Bank acquired a new position in shares of United Therapeutics in the fourth quarter valued at $293,418,000. Finally, Swedbank AB raised its stake in shares of United Therapeutics by 0.7% in the first quarter. Swedbank AB now owns 327,122 shares of the biotechnology company's stock valued at $193,977,000 after purchasing an additional 2,350 shares in the last quarter. Institutional investors and hedge funds own 94.08% of the company's stock.

Key United Therapeutics News

Here are the key news stories impacting United Therapeutics this week:

• Positive Sentiment: A federal court in Delaware ruled that Liquidia’s Yutrepia infringes two United Therapeutics patent claims covering inhaled treprostinil for PH-ILD. The court also rejected Liquidia’s arguments that the claims were invalid. United Therapeutics Corporation Prevails in Patent Litigation Against Liquidia
• Positive Sentiment: The ruling could limit Yutrepia’s ability to compete in the PH-ILD market. United Therapeutics said it believes the decision may support an order requiring the FDA to withdraw Yutrepia’s approval until labeling excluding the PH-ILD indication is authorized, potentially reducing competitive pressure on Tyvaso and future cash flows. UTHR Prevails in LQDA’s Yutrepia Patent Dispute
• Positive Sentiment: Investors interpreted the legal victory as improving the durability of United Therapeutics’ pulmonary-hypertension franchise. The move was also supported by previously announced shareholder returns, including an accelerated share repurchase under the company’s remaining $2.0 billion authorization. Why United Therapeutics Stock Is Up Today
• Neutral Sentiment: The court ruling is a major development, but Liquidia may continue pursuing legal and regulatory options, so the ultimate timing and scope of any restrictions on Yutrepia remain uncertain. United Therapeutics Won Its Patent War and Liquidia Collapsed
• Negative Sentiment: Recent insider-trading data shows substantial selling by executives, including CEO Martine Rothblatt. While the transactions may have been conducted under prearranged plans, the absence of insider purchases could temper investor confidence. United Therapeutics Insider Trading

About United Therapeutics

United Therapeutics Corporation is a biotechnology and pharmaceutical company focused on developing and commercializing therapies for pulmonary arterial hypertension (PAH) and other serious cardiopulmonary conditions. The company's products include Tyvaso and Tyvaso DPI, inhaled formulations of treprostinil; Remodulin, an injectable form of treprostinil; Orenitram, an oral treprostinil product; and Adcirca, a tadalafil-based PAH treatment.

United Therapeutics markets its therapies primarily in the United States and internationally through commercial and regulatory activities in additional markets.

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