Share Repurchase Plan Announced by United Therapeutics (NASDAQ:UTHR) Board of Directors

United Therapeutics (NASDAQ:UTHR) declared that its board has approved a stock buyback program on Thursday, October 22nd, RTT News reports. The company plans to repurchase $2.00 billion in shares. This repurchase authorization allows the biotechnology company to reacquire up to 8.3% of its stock through open market purchases. Share repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

United Therapeutics Trading Up 3.8%

Shares of UTHR traded up $21.30 during mid-day trading on Thursday, reaching $584.79. 878,422 shares of the stock traded hands, compared to its average volume of 910,511. The firm has a fifty day moving average price of $517.38 and a 200 day moving average price of $539.73. The company has a market cap of $25.08 billion, a price-to-earnings ratio of 20.92, a price-to-earnings-growth ratio of 4.08 and a beta of 0.49. United Therapeutics has a 1 year low of $409.07 and a 1 year high of $609.35.

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

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on UTHR shares. Royal Bank Of Canada reduced their price objective 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. Cantor Fitzgerald restated an “overweight” rating on shares of United Therapeutics in a research report on Thursday, October 1st. UBS Group set a $725.00 target price on United Therapeutics in a research report on Monday. 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, October 15th. Finally, Leerink Partners lifted their price target on United Therapeutics from $685.00 to $725.00 and gave the company an “outperform” rating in a research report on Monday. Twelve investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, United Therapeutics presently has a consensus rating of “Moderate Buy” and an average price target of $650.43.

Key Headlines Impacting United Therapeutics

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

Insider Buying and Selling at United Therapeutics

In other United Therapeutics news, CEO Martine Rothblatt sold 9,500 shares of United Therapeutics stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $516.06, for a total transaction of $4,902,570.00. Following the completion of the sale, the chief executive officer directly owned 324,443 shares in the company, valued at $167,432,054.58. The trade was a 2.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders have sold 411,028 shares of company stock valued at $213,390,191 in the last quarter. 8.60% of the stock is currently owned by corporate insiders.

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.