United Therapeutics (NASDAQ:UTHR) to Repurchase $2.00 billion in Stock

United Therapeutics (NASDAQ:UTHR) declared that its Board of Directors has initiated a stock buyback plan on Thursday, October 22nd, RTT News reports. The company plans to buy back $2.00 billion in shares. This buyback authorization allows the biotechnology company to purchase up to 8.3% of its stock through open market purchases. Share buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

United Therapeutics Stock Up 0.5%

United Therapeutics stock opened at $587.50 on Friday. The firm has a market cap of $25.20 billion, a price-to-earnings ratio of 21.02, a price-to-earnings-growth ratio of 4.26 and a beta of 0.49. The business’s 50-day moving average price is $519.14 and its 200 day moving average price is $540.06. United Therapeutics has a 52 week low of $409.07 and a 52 week high of $609.35.

United Therapeutics (NASDAQ:UTHR) last announced its quarterly earnings results on Wednesday, August 5th. The biotechnology company reported $7.27 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.86 by $0.41. United Therapeutics had a net margin of 41.56% and a return on equity of 20.18%. The firm had revenue of $783.30 million for the quarter, compared to the consensus estimate of $804.65 million. During the same period in the prior year, the firm posted $6.41 earnings per share. The firm’s quarterly revenue was down 1.9% compared to the same quarter last year. Equities analysts expect that United Therapeutics will post 26.07 EPS for the current year.

Wall Street Analyst Weigh In

UTHR has been the subject of a number of research analyst reports. The Goldman Sachs Group reiterated a “sell” rating and issued a $368.00 price target on shares of United Therapeutics in a research note on Thursday, October 15th. JPMorgan Chase & Co. boosted their price target on United Therapeutics from $685.00 to $687.00 and gave the stock an “overweight” rating in a research note on Thursday, July 23rd. Leerink Partners upped their price objective on shares of United Therapeutics from $685.00 to $725.00 and gave the company an “outperform” rating in a report on Monday, October 19th. Raymond James Financial reaffirmed an “outperform” rating and issued a $717.00 price objective on shares of United Therapeutics in a research report on Tuesday. Finally, Royal Bank Of Canada lowered their target price on shares of United Therapeutics from $708.00 to $697.00 and set an “outperform” rating for the company in a research note on Thursday. Twelve equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $650.43.

Insiders Place Their Bets

In other United Therapeutics news, CEO Martine Rothblatt sold 9,500 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $516.06, for a total value of $4,902,570.00. Following the completion of the sale, the chief executive officer owned 324,443 shares in the company, valued at approximately $167,432,054.58. This represents a 2.84% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders have sold 401,528 shares of company stock worth $208,338,661 in the last quarter. Insiders own 8.60% of the company’s stock.

Key Stories Impacting United Therapeutics

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

• Positive Sentiment: $2 billion buyback authorization: United Therapeutics’ board approved an additional $2 billion share-repurchase program, potentially covering up to 8.3% of outstanding shares. The authorization could reduce the share count, support future earnings per share and signal that management considers the stock undervalued. United Therapeutics Authorizes Additional $2 Billion Share Buyback Program
• Positive Sentiment: Analyst targets remain above the current share price: Recent research includes bullish ratings and targets as high as $725. The broader analyst consensus remains “Moderate Buy,” with an average target of approximately $650, although ratings are not unanimous. Analysts Conflicted on United Therapeutics
• Neutral Sentiment: CEO sold a relatively small portion of holdings: CEO Martine Rothblatt sold 9,500 shares for about $5.3 million, reducing her direct ownership by 2.84%. She still owns more than 324,000 shares, so the transaction may represent personal diversification rather than a change in business outlook. SEC Insider Trading Filing
• Negative Sentiment: Tyvaso faces near-term pressure: RBC warned that United Therapeutics’ settlement with Liquidia could weigh on the outlook for Tyvaso, raising concerns about competition and growth for the company’s key pulmonary arterial hypertension franchise. United Therapeutics Tyvaso Outlook Faces Near-Term Pressure

About United Therapeutics

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.