United Therapeutics (NASDAQ:UTHR) Corporation's (NASDAQ:UTHR) Chief Financial Officer and Treasurer, James Edgemond, has recently completed a series of transactions involving the company's common stock, according to a new SEC filing. On September 3, 2024, Edgemond sold a total of 6,785 shares at a price of $362.37 each, netting approximately $2,459,049.
The transactions included the exercise of stock options and subsequent sales under a Rule 10b5-1 trading plan, which Edgemond had entered into on May 17, 2024. In addition to the sales, he also acquired 8,232 shares through option exercises at prices ranging between $117.76 and $120.26, totaling $893,381.
The CFO's stock option exercises were partly "sell-to-cover" transactions, where he sold some of the shares obtained from the option exercise to cover the costs and taxes associated with the transaction, and retained the rest. Specifically, Edgemond exercised 816 stock options and sold 550 of the resulting shares, while holding onto the remaining 266 shares. Another similar transaction involved the exercise of 850 stock options, with 569 shares sold and 281 shares retained.
Following these transactions, James Edgemond's direct ownership in United Therapeutics has adjusted to reflect the changes. The total value of shares acquired through option exercises was $893,381, and the total value of shares sold was $2,459,049.
Investors often monitor the trading activity of insiders like CFOs for insights into the company's performance and management's confidence in the firm's prospects. The recent trades by United Therapeutics' CFO represent significant activity that shareholders may wish to consider as part of their investment research.
In other recent news, United Therapeutics Corp . has seen significant developments. Oppenheimer raised the company's stock price target to $575, maintaining an Outperform rating, due to the promising prospects of TYVASO, a therapy for idiopathic pulmonary fibrosis (IPF). The firm expects top-line data from the TETON 1&2 studies by mid-2025 and estimates TYVASO could generate an additional peak sales of approximately $5 billion by 2033.
Wells Fargo (NYSE:WFC) also increased United Therapeutics' price target from $350 to $380, maintaining an Overweight rating, anticipating higher revenues from Tyvaso. The bank's analysts project Tyvaso's revenue to reach $2 billion by 2025, surpassing the consensus by 8%. This revision comes after the FDA granted regulatory exclusivity to United Therapeutics, potentially delaying the final approval of competitor LQDA's Yutrepia until May 2025.
TD Cowen reiterated a Buy rating and a $350 price target for United Therapeutics' stock, emphasizing the company's strong performance and strategic advancements. United Therapeutics is seeking FDA approval for Tyvaso DPI based on TETON 1 and TETON 2 studies, indicating future developments.
Lastly, the company posted a record Q2 revenue of $715 million, marking a 20% increase from the same period last year, with Tyvaso contributing significantly to this growth. These are recent developments that have shaped United Therapeutics' current position in the market.
InvestingPro Insights
United Therapeutics Corporation (NASDAQ:UTHR) has been displaying notable financial strength and management confidence, as reflected in recent insider transactions and company performance metrics. According to InvestingPro data, United Therapeutics boasts a market capitalization of $15.7 billion and an attractive price-to-earnings (P/E) ratio of 15.29, which adjusts to 14.88 when considering the last twelve months as of Q2 2024. The company's P/E ratio is particularly compelling when paired with its near-term earnings growth, suggesting that the stock may be undervalued.
InvestingPro Tips highlight that United Therapeutics' management has been actively buying back shares and holds more cash than debt on its balance sheet, which could be seen as a sign of financial prudence and stability. These actions are complemented by a high shareholder yield and a series of earnings upwards revisions by four analysts for the upcoming period, reflecting a positive outlook on the company's future performance.
Furthermore, the company's gross profit margins have been impressive, with gross profit for the last twelve months as of Q2 2024 reaching $2,324.9 million, translating to a margin of 88.85%. This level of profitability, coupled with the ability of cash flows to sufficiently cover interest payments, presents United Therapeutics as a robust entity in its financial operations.
For investors considering the company's stock, it's worth noting that United Therapeutics is trading near its 52-week high, with the price at 96.53% of this peak. The stock's strong return over the last year, with a 54.53% price total return, underscores the company's robust market performance. Investors can find additional InvestingPro Tips for United Therapeutics at https://www.investing.com/pro/UTHR, which currently lists 15 more tips that could potentially guide investment decisions.
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