Stock Repurchase Program Initiated by United Therapeutics (NASDAQ:UTHR) Board

United Therapeutics (NASDAQ:UTHR) announced that its board has approved a share buyback plan on Thursday, October 22nd, RTT News reports. The company plans to repurchase $2.00 billion in shares. This buyback authorization permits the biotechnology company to purchase up to 8.3% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

United Therapeutics Price Performance

NASDAQ:UTHR traded up $21.30 during trading hours on Thursday, hitting $584.79. The company had a trading volume of 878,422 shares, compared to its average volume of 910,511. The stock has a 50-day moving average price of $517.38 and a 200 day moving average price of $539.73. The company has a market capitalization of $25.08 billion, a PE ratio of 20.92, a price-to-earnings-growth ratio of 4.08 and a beta of 0.49. United Therapeutics has a 52 week low of $409.07 and a 52 week high of $609.35.

United Therapeutics (NASDAQ:UTHR) last issued its quarterly earnings data on Wednesday, August 5th. The biotechnology company reported $7.27 EPS for the quarter, topping the consensus estimate of $6.86 by $0.41. United Therapeutics had a net margin of 41.56% and a return on equity of 20.18%. The business had revenue of $783.30 million during the quarter, compared to analyst estimates of $804.65 million. During the same period in the prior year, the business earned $6.41 EPS. The company’s revenue for the quarter was down 1.9% on a year-over-year basis. Analysts anticipate that United Therapeutics will post 26.07 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on UTHR shares. Jefferies Financial Group reaffirmed a “buy” rating and set a $728.00 price objective on shares of United Therapeutics in a research note on Wednesday, October 14th. The Goldman Sachs Group reissued a “sell” rating and issued a $368.00 target price on shares of United Therapeutics in a research note on Thursday, October 15th. Royal Bank Of Canada reduced their price target on United Therapeutics from $708.00 to $697.00 and set an “outperform” rating on the stock in a report on Thursday. Weiss Ratings downgraded United Therapeutics from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday, August 27th. Finally, Bank of America lowered their price target 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. Twelve investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, United Therapeutics currently has an average rating of “Moderate Buy” and a consensus price target of $650.43.

Insider Transactions at United Therapeutics

In other United Therapeutics news, CEO Martine A. Rothblatt sold 9,500 shares of the firm’s stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $560.07, for a total value of $5,320,665.00. Following the completion of the sale, the chief executive officer directly owned 324,443 shares in the company, valued at $181,710,791.01. This trade represents a 2.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Paul A. Mahon sold 8,300 shares of the firm’s stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $544.30, for a total transaction of $4,517,690.00. Following the completion of the sale, the executive vice president owned 45,172 shares of the company’s stock, valued at $24,587,119.60. This trade represents a 15.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 411,028 shares of company stock worth $213,390,191 in the last ninety days. Insiders own 8.60% of the company’s stock.

Key United Therapeutics News

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

• Positive Sentiment: $2 billion share repurchase authorization: The board approved an additional $2 billion buyback. Repurchases could reduce the outstanding share count, support earnings per share and signal management believes the stock is attractively valued. United Therapeutics Authorizes Additional $2 Billion Share Buyback Program
• Positive Sentiment: Analysts continue to raise expectations: Leerink Partners increased its price target to $725 from $685 while maintaining an “outperform” rating. Other recent targets are also above the current trading range, with the analyst consensus remaining “Moderate Buy.” United Therapeutics Stock Gets Price Target Increase from Leerink Partners
• Neutral Sentiment: Third-quarter results are scheduled for November 4: Investors will be watching Tyvaso sales, guidance and progress in the company’s organ-transplantation programs. The prior quarter showed stronger-than-expected EPS but revenue below consensus and a year-over-year decline. United Therapeutics to Report Third-Quarter Results
• Neutral Sentiment: CEO Martine Rothblatt sold shares: Rothblatt sold 9,500 shares for about $5.3 million, reducing her position by 2.84% but leaving her with more than 324,000 shares. The transaction may reflect scheduled diversification rather than a change in outlook. SEC Insider Trading Filing
• Negative Sentiment: Tyvaso faces near-term uncertainty: RBC said the settlement with Liquidia could create pressure for Tyvaso’s outlook, raising concerns about competitive dynamics and the growth trajectory of United Therapeutics’ key pulmonary hypertension products. United Therapeutics Tyvaso Outlook Faces Near-Term Pressure

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.