United Therapeutics (NASDAQ:UTHR) Sets New 52-Week High - Here's What Happened

Key Points

• United Therapeutics shares reached a new 52-week high, trading as high as $609.99 and closing activity around $597.16. The stock has a “Moderate Buy” consensus rating, with an average analyst price target of $667.07.
• The company’s latest quarter included adjusted earnings of $7.27 per share, exceeding estimates of $6.86, although revenue of $783.3 million fell short of expectations and declined 1.9% year over year.
• United Therapeutics authorized a $2 billion stock-repurchase program, allowing buybacks of up to 8.3% of outstanding shares. However, insiders sold 401,528 shares worth approximately $210.1 million over the past three months.

United Therapeutics Corporation (NASDAQ:UTHR - Get Free Report)'s share price hit a new 52-week high during trading on Friday. The company traded as high as $609.99 and last traded at $597.1590, with a volume of 23,029 shares trading hands. The stock had previously closed at $593.54.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the stock. Cantor Fitzgerald reiterated an "overweight" rating and issued a $850.00 price target on shares of United Therapeutics in a research note on Monday. Bank of America decreased their target price 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. UBS Group set a $725.00 price target on United Therapeutics in a report on Monday, October 19th. Weiss Ratings downgraded United Therapeutics from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, August 27th. Finally, Jefferies Financial Group restated a "buy" rating and issued a $728.00 price target on shares of United Therapeutics in a report on Wednesday, October 14th. Twelve equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, United Therapeutics currently has an average rating of "Moderate Buy" and a consensus target price of $667.07.

United Therapeutics Trading Up 1.0%

The business's 50-day simple moving average is $525.55 and its 200-day simple moving average is $529.96. The company has a market capitalization of $25.70 billion, a PE ratio of 21.40, a price-to-earnings-growth ratio of 4.25 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 EPS for the quarter, beating the consensus estimate of $6.86 by $0.41. United Therapeutics had a return on equity of 20.18% and a net margin of 41.56%. The company had revenue of $783.30 million for the quarter, compared to analyst estimates of $804.65 million. During the same period last year, the company earned $6.41 earnings per share. United Therapeutics's quarterly revenue was down 1.9% compared to the same quarter last year. Sell-side analysts forecast that United Therapeutics Corporation will post 26.09 EPS for the current fiscal year.

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

Insider Activity at United Therapeutics

In other news, CEO Martine Rothblatt sold 9,500 shares of United Therapeutics stock in a transaction that occurred on Wednesday, October 28th. The shares were sold at an average price of $585.49, for a total transaction of $5,562,155.00. Following the sale, the chief executive officer owned 324,443 shares of the company's stock, valued at approximately $189,958,132.07. The trade was a 2.84% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Paul Mahon sold 8,300 shares of the company's stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $544.30, for a total value of $4,517,690.00. Following the completion of the transaction, the executive vice president owned 45,172 shares in the company, valued at $24,587,119.60. This represents a 15.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 401,528 shares of company stock valued at $210,097,491. Corporate insiders own 8.60% of the company's stock.

Institutional Trading of United Therapeutics

Hedge funds and other institutional investors have recently modified their holdings of the business. Toth Financial Advisory Corp boosted its stake in United Therapeutics by 2,400.0% during the 2nd quarter. Toth Financial Advisory Corp now owns 50 shares of the biotechnology company's stock worth $27,000 after purchasing an additional 48 shares during the period. Fiduciary Financial Advisors purchased a new position in United Therapeutics during the 2nd quarter worth $30,000. Caitlin John LLC acquired a new position in United Therapeutics in the second quarter valued at $37,000. International Assets Investment Management LLC increased its stake in United Therapeutics by 426.7% in the first quarter. International Assets Investment Management LLC now owns 79 shares of the biotechnology company's stock valued at $45,000 after purchasing an additional 64 shares during the period. Finally, PFS Partners LLC purchased a new stake in shares of United Therapeutics in the third quarter valued at about $45,000. 94.08% of the stock is owned by institutional investors and hedge funds.

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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