Traders Buy Large Volume of Call Options on United Therapeutics (NASDAQ:UTHR)

United Therapeutics Corporation (NASDAQ:UTHR) was the target of unusually large options trading on Friday. Traders bought 12,089 call options on the company. This represents an increase of 220% compared to the typical daily volume of 3,777 call options.

United Therapeutics Stock Down 1.5%

Shares of UTHR opened at $533.12 on Friday. The company has a 50 day moving average of $513.64 and a 200-day moving average of $540.40. The stock has a market capitalization of $22.87 billion, a P/E ratio of 19.07, a P/E/G ratio of 3.81 and a beta of 0.49. United Therapeutics has a twelve month low of $409.07 and a twelve month high of $609.35.

United Therapeutics (NASDAQ:UTHR) last released its earnings results on Wednesday, August 5th. The biotechnology company reported $7.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.86 by $0.41. United Therapeutics had a return on equity of 20.18% and a net margin of 41.56%. The business had revenue of $783.30 million for the quarter, compared to the consensus estimate of $804.65 million. During the same quarter in the previous year, the business earned $6.41 earnings per share. United Therapeutics’s quarterly revenue was down 1.9% on a year-over-year basis. On average, sell-side analysts anticipate that United Therapeutics will post 26.40 earnings per share for the current fiscal year.

Insider Activity at United Therapeutics

In other news, CEO Martine A. Rothblatt sold 9,500 shares of the business’s stock in a transaction dated Wednesday, October 14th. The shares were sold at an average price of $539.99, for a total transaction of $5,129,905.00. Following the transaction, the chief executive officer owned 324,443 shares in the company, valued at approximately $175,195,975.57. The trade was a 2.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Paul A. Mahon sold 8,300 shares of the company’s stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $544.30, for a total transaction of $4,517,690.00. Following the transaction, the executive vice president directly owned 45,172 shares of the company’s stock, valued at $24,587,119.60. This represents a 15.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 392,028 shares of company stock valued at $202,884,996. 8.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On United Therapeutics

Several institutional investors and hedge funds have recently made changes to their positions in the company. Toth Financial Advisory Corp grew its stake in shares of United Therapeutics by 2,400.0% in the second quarter. Toth Financial Advisory Corp now owns 50 shares of the biotechnology company’s stock valued at $27,000 after acquiring an additional 48 shares in the last quarter. Fiduciary Financial Advisors bought a new position in shares of United Therapeutics in the second quarter worth $30,000. Caitlin John LLC acquired a new position in United Therapeutics in the second quarter valued at about $37,000. International Assets Investment Management LLC grew its stake in United Therapeutics by 426.7% during the first quarter. International Assets Investment Management LLC now owns 79 shares of the biotechnology company’s stock worth $45,000 after buying an additional 64 shares in the last quarter. Finally, Keating Financial Advisory Services Inc. acquired a new position in shares of United Therapeutics in the 2nd quarter valued at approximately $81,000. Institutional investors and hedge funds own 94.08% of the company’s stock.

Key Headlines Impacting United Therapeutics

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

• Positive Sentiment: United Therapeutics settled six patent and antitrust disputes with Liquidia, reducing legal uncertainty around Liquidia’s YUTREPIA inhaled treprostinil treatment. The agreement limits YUTREPIA’s label, including excluding pulmonary hypertension associated with interstitial lung disease, which could help protect UTHR’s competitive position. United Therapeutics Settles Litigation And Resets Pulmonary Hypertension Competition
• Positive Sentiment: The settlement is expected to provide United Therapeutics with approximately $380.7 million in payments, while giving investors greater visibility into the competitive landscape for treprostinil therapies. United Therapeutics Stock May Be Undervalued Following the Litigation Settlement
• Positive Sentiment: Traders purchased 12,089 UTHR call options, roughly 220% above average daily volume. The activity signals increased bullish speculation, although options flow does not guarantee sustained buying in the shares.
• Positive Sentiment: Analyst sentiment remains generally favorable. Jefferies reaffirmed a Buy rating with a $728 target, and the broader analyst consensus remains “Moderate Buy,” with targets above recent trading levels.
• Neutral Sentiment: CEO Martine Rothblatt sold 9,500 shares for approximately $5.13 million, reducing her holdings by 2.84%. She still retains a substantial position, so the sale may reflect personal financial planning rather than a change in the company’s outlook. United Therapeutics CEO Stock Sale SEC Filing
• Negative Sentiment: EVP Paul Mahon sold 8,300 shares for approximately $4.52 million, cutting his direct stake by 15.52%. The second executive sale disclosed within two days may weigh on sentiment, even though insider transactions alone do not establish a deterioration in fundamentals. United Therapeutics EVP Stock Sale SEC Filing

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on UTHR. Bank of America dropped their price objective on shares of United Therapeutics from $620.00 to $613.00 and set a “neutral” rating for the company in a research note on Friday, July 10th. Morgan Stanley upped their price target on United Therapeutics from $515.00 to $566.00 and gave the company an “equal weight” rating in a research report on Wednesday, October 7th. 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. JPMorgan Chase & Co. lifted their price objective on United Therapeutics from $685.00 to $687.00 and gave the company an “overweight” rating in a research report on Thursday, July 23rd. Finally, The Goldman Sachs Group reaffirmed a “sell” rating and issued a $368.00 price target on shares of United Therapeutics in a report on Thursday. Eleven investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, United Therapeutics currently has a consensus rating of “Moderate Buy” and an average price target of $642.69.

United Therapeutics Company Profile

United Therapeutics Corporation is a biotechnology and pharmaceutical company focused on developing and commercializing therapies for pulmonary arterial hypertension (PAH) and other serious cardiopulmonary conditions. The company’s products include Tyvaso and Tyvaso DPI, inhaled formulations of treprostinil; Remodulin, an injectable form of treprostinil; Orenitram, an oral treprostinil product; and Adcirca, a tadalafil-based PAH treatment.

United Therapeutics markets its therapies primarily in the United States and internationally through commercial and regulatory activities in additional markets.