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

United Therapeutics Corporation (NASDAQ:UTHR) shares saw unusually-high trading volume on Friday . Approximately 512,556 shares changed 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 Headlines 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

Analysts Set New Price Targets

UTHR has been the subject of a number of recent research reports. TD Cowen reissued a “buy” rating on shares of United Therapeutics in a report on Thursday, May 21st. Wells Fargo & Company raised shares of United Therapeutics from an “equal weight” rating to an “overweight” rating and lifted their price objective for the stock from $575.00 to $735.00 in a report on Thursday, May 7th. Royal Bank Of Canada dropped their price target on shares of United Therapeutics from $704.00 to $677.00 and set an “outperform” rating on the stock in a research report on Thursday. Raymond James Financial began coverage on shares of United Therapeutics in a report on Friday, April 10th. They set an “outperform” rating and a $700.00 price target on the stock. Finally, JPMorgan Chase & Co. upped their price objective on shares of United Therapeutics from $685.00 to $687.00 and gave the stock an “overweight” rating in a research report on Thursday, July 23rd. Eleven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $646.00.

United Therapeutics Price Performance

The business’s fifty day moving average is $539.78 and its 200-day moving average is $534.19. The firm has a market cap of $22.51 billion, a PE ratio of 18.94, a P/E/G ratio of 1.74 and a beta of 0.59.

United Therapeutics (NASDAQ:UTHR) last announced 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. The business had revenue of $783.30 million for the quarter, compared to analyst estimates of $804.65 million. United Therapeutics had a net margin of 41.56% and a return on equity of 20.18%. The company’s revenue for the quarter was down 1.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $6.41 earnings per share. Analysts forecast that United Therapeutics Corporation will post 26.65 EPS for the current year.

Insiders Place Their Bets

In other United Therapeutics news, CFO James Edgemond sold 10,000 shares of the firm’s stock in a transaction on Thursday, May 21st. The stock was 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 of the company’s stock, valued at $10,648,140.36. This trade represents a 34.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders sold 482,833 shares of company stock worth $265,555,592 over the last three months. 8.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the business. Geneos Wealth Management Inc. boosted its holdings in shares of United Therapeutics by 141.7% in the first quarter. Geneos Wealth Management Inc. now owns 145 shares of the biotechnology company’s stock worth $45,000 after acquiring an additional 85 shares during the period. Northwestern Mutual Wealth Management Co. raised its stake in shares of United Therapeutics by 18.8% during 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 period. Jump Financial LLC purchased a new stake in United Therapeutics during the 2nd quarter worth about $277,000. Cerity Partners LLC lifted its holdings in United Therapeutics by 77.3% during the 2nd 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 in the last quarter. Finally, Bank of Nova Scotia boosted its stake in United Therapeutics by 6.9% in the 2nd quarter. Bank of Nova Scotia now owns 1,628 shares of the biotechnology company’s stock worth $468,000 after purchasing an additional 105 shares during the period. 94.08% of the stock is owned by 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.