United Therapeutics (NASDAQ:UTHR) Sees Strong Trading Volume - Should You Buy?

Key Points

• United Therapeutics beat earnings expectations in the second quarter, reporting EPS of $7.27 versus the $6.86 consensus, though revenue of $783.3 million fell short of forecasts and declined 1.9% year over year.
• The company’s pipeline and analyst sentiment remain favorable: progress on Phase 3 ralinepag could support future growth, while 11 analysts rate the stock Buy and the consensus price target is $646, above its recent $528.82 price.
• Insider selling is a notable risk, with executives selling significant stakes and insiders collectively selling 482,833 shares worth about $265.6 million over the last quarter, despite strong institutional ownership of 94.08%.

United Therapeutics Corporation (NASDAQ:UTHR - Get Free Report) shares saw unusually-high trading volume on Friday . 512,556 shares traded hands during trading, an increase of 5% from the previous session's volume of 490,146 shares.The stock last traded at $528.82 and had previously closed at $532.94.

Key Stories Impacting United Therapeutics

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

• Positive Sentiment: EPS exceeded expectations. United Therapeutics reported second-quarter earnings of $7.27 per share, above the $6.86 consensus estimate and up from $6.41 a year earlier. The company also posted a robust 41.56% net margin, strengthening the fundamental case for UTHR. United Therapeutics Q2 Earnings Beat Estimates
• Positive Sentiment: Ralinepag and the broader pipeline provide future-growth catalysts. Phase 3 progress and regulatory filings for ralinepag could diversify United Therapeutics’ pulmonary hypertension business and help offset competitive pressure affecting Tyvaso. EPS Strength and Ralinepag’s Phase 3 Milestone
• Positive Sentiment: Analyst support remains favorable. H.C. Wainwright reiterated a Buy rating with a $660 price target. RBC kept an Outperform rating, although it reduced its target from $704 to $677. The analyst targets remain above the stock’s recently quoted level, suggesting continued perceived upside. Buy Rating Reiterated on United Therapeutics
• Neutral Sentiment: Revenue fell short of forecasts. Second-quarter revenue was $783.3 million, below the $804.65 million consensus and down 1.9% year over year. The revenue weakness reflects near-term commercial pressure, even though profitability and earnings were better than expected. United Therapeutics Q2 Net Income Rises, Revenue Falls
• Negative Sentiment: Senior executives sold sizable positions. CEO Martine Rothblatt sold 9,500 shares for approximately $4.9 million, while EVP Paul Mahon sold 8,300 shares for about $4.3 million. The sales may be routine or personal, but the reduction in insider ownership could weigh on investor confidence. United Therapeutics EVP Sells Shares

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on UTHR shares. TD Cowen reaffirmed a "buy" rating on shares of United Therapeutics in a report on Thursday, May 21st. Bank of America decreased their price objective on shares of United Therapeutics from $620.00 to $613.00 and set a "neutral" rating on the stock in a report on Friday, July 10th. Morgan Stanley set a $515.00 target price on shares of United Therapeutics in a report on Thursday. Wells Fargo & Company raised shares of United Therapeutics from an "equal weight" rating to an "overweight" rating and increased their price target for the company from $575.00 to $735.00 in a report on Thursday, May 7th. Finally, Raymond James Financial initiated coverage on shares of United Therapeutics in a research report on Friday, April 10th. They set an "outperform" rating and a $700.00 price objective for the company. Eleven equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, United Therapeutics has a consensus rating of "Moderate Buy" and an average price target of $646.00.

United Therapeutics Stock Down 0.5%

The company's 50 day moving average is $539.78 and its 200 day moving average is $534.19. The firm has a market capitalization of $22.51 billion, a price-to-earnings ratio of 18.94, a P/E/G ratio of 1.74 and a beta of 0.59.

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, topping 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 net margin of 41.56% and a return on equity of 20.18%. The business's revenue was down 1.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $6.41 EPS. On average, analysts expect that United Therapeutics Corporation will post 26.65 EPS for the current year.

Insider Activity at United Therapeutics

In other news, CFO James Edgemond sold 10,000 shares of United Therapeutics stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $564.11, for a total value of $5,641,100.00. Following the completion of the sale, the chief financial officer directly owned 18,876 shares in the company, valued at approximately $10,648,140.36. The trade was a 34.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders have sold 482,833 shares of company stock worth $265,555,592 over the last quarter. 8.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On United Therapeutics

Several hedge funds and other institutional investors have recently added to or reduced their stakes in UTHR. Leuthold Group LLC lifted its position in shares of United Therapeutics by 41.4% during the 4th quarter. Leuthold Group LLC now owns 10,672 shares of the biotechnology company's stock valued at $5,200,000 after acquiring an additional 3,126 shares during the period. UBS Group AG raised its holdings in shares of United Therapeutics by 45.3% during the fourth quarter. UBS Group AG now owns 225,849 shares of the biotechnology company's stock valued at $110,045,000 after purchasing an additional 70,445 shares during the period. Nicholas Investment Partners LP boosted its holdings in United Therapeutics by 478.5% in the fourth quarter. Nicholas Investment Partners LP now owns 4,553 shares of the biotechnology company's stock worth $2,218,000 after acquiring an additional 3,766 shares in the last quarter. LBP AM SA acquired a new position in shares of United Therapeutics during the fourth quarter worth approximately $9,745,000. Finally, M&T Bank Corp raised its position in shares of United Therapeutics by 171.6% during the fourth quarter. M&T Bank Corp now owns 3,142 shares of the biotechnology company's stock worth $1,531,000 after purchasing an additional 1,985 shares during the period. 94.08% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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