United Therapeutics (NASDAQ:UTHR) Shares Down 4.7% on Insider Selling

Key Points

• United Therapeutics shares fell 4.7% to about $488.79 after CEO Martine Rothblatt disclosed multiple sales of 9,500 shares, including a $4.86 million transaction on August 31.
• Analysts remain broadly positive, with 11 Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $646.
• The company beat quarterly earnings expectations with $7.27 in EPS versus $6.86 forecast, although revenue of $783.3 million missed estimates and declined 1.9% year over year.

Shares of United Therapeutics Corporation (NASDAQ:UTHR - Get Free Report) fell 4.7% during mid-day trading on Wednesday after an insider sold shares in the company. The company traded as low as $491.22 and last traded at $488.7910. 186,876 shares traded hands during mid-day trading, a decline of 62% from the average session volume of 486,966 shares. The stock had previously closed at $512.70.

Specifically, CEO Martine A. Rothblatt sold 9,500 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $511.09, for a total value of $4,855,355.00. Following the completion of the transaction, the chief executive officer owned 324,443 shares in the company, valued at approximately $165,819,572.87. This represents a 2.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Martine A. Rothblatt sold 9,500 shares of the firm's stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $517.51, for a total transaction of $4,916,345.00. Following the transaction, the chief executive officer owned 324,443 shares of the company's stock, valued at $167,902,496.93. This trade represents a 2.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In other news, CEO Martine A. Rothblatt sold 9,500 shares of the company's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $517.28, for a total transaction of $4,914,160.00. Following the completion of the transaction, the chief executive officer owned 324,443 shares of the company's stock, valued at $167,827,875.04. This represents a 2.84% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on UTHR shares. Bank of America dropped their target price on shares of United Therapeutics from $620.00 to $613.00 and set a "neutral" rating for the company in a research report on Friday, July 10th. 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 research report on Thursday, August 6th. JPMorgan Chase & Co. raised 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. 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. Finally, Wells Fargo & Company upgraded United Therapeutics from an "equal weight" rating to an "overweight" rating and boosted their price objective for the stock from $575.00 to $735.00 in a report on Thursday, May 7th. Eleven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $646.00.

United Therapeutics Stock Performance

The stock has a market capitalization of $20.96 billion, a price-to-earnings ratio of 17.52, a price-to-earnings-growth ratio of 2.55 and a beta of 0.56. The business has a fifty day simple moving average of $529.27 and a 200 day simple moving average of $539.68.

United Therapeutics (NASDAQ:UTHR - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The biotechnology company reported $7.27 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 the consensus estimate of $804.65 million. United Therapeutics had a return on equity of 20.18% and a net margin of 41.56%.United Therapeutics's revenue was down 1.9% on a year-over-year basis. During the same period last year, the business posted $6.41 earnings per share. On average, sell-side analysts forecast that United Therapeutics Corporation will post 26.33 earnings per share for the current fiscal year.

Institutional Investors Weigh In On United Therapeutics

Several hedge funds and other institutional investors have recently modified their holdings of UTHR. Geneos Wealth Management Inc. lifted its holdings in United Therapeutics by 141.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 145 shares of the biotechnology company's stock worth $45,000 after purchasing an additional 85 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of United Therapeutics by 18.8% in 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 during the last quarter. Jump Financial LLC purchased a new position in United Therapeutics during the second quarter worth $277,000. Cerity Partners LLC lifted its stake in United Therapeutics by 77.3% in the second quarter. Cerity Partners LLC now owns 12,843 shares of the biotechnology company's stock worth $3,691,000 after purchasing an additional 5,600 shares during the last quarter. Finally, Bank of Nova Scotia lifted its stake in shares of United Therapeutics by 6.9% during the 2nd quarter. Bank of Nova Scotia now owns 1,628 shares of the biotechnology company's stock worth $468,000 after acquiring an additional 105 shares during the last quarter. 94.08% of the stock is currently owned by hedge funds and other institutional investors.

About United Therapeutics

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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