Michael Benkowitz, President and COO of United Therapeutics Corp (NASDAQ:UTHR), recently sold shares valued at approximately $9.97 million. The transactions occurred on November 6 and 7, with sale prices ranging from $391.70 to $403.14 per share.
Benkowitz's sales were part of a trading plan established under Rule 10b5-1, which allows company insiders to set up a predetermined schedule for buying or selling stock. The shares were held in a trust, where Benkowitz and his spouse have shared investment and voting power.
In addition to the sales, Benkowitz exercised options to acquire shares at prices between $102.11 and $120.26, totaling approximately $2.69 million. These transactions reflect ongoing activity in the executive's portfolio, aligning with previously established trading plans.
In other recent news, United Therapeutics Corporation reported a significant rise in its third-quarter revenue for 2024, reaching $748.9 million, a notable increase from the $609.4 million recorded in the same quarter of the previous year. This growth was primarily driven by robust sales of treprostinil-based products, particularly Tyvaso, which exceeded expectations by posting sales of $433.8 million. However, Remodulin sales fell short of projections, reaching $128.3 million against a forecast of $150.2 million.
Ladenburg Thalmann maintained a Neutral rating on United Therapeutics and raised the price target to $344 from the previous $319, while H.C. Wainwright reaffirmed a Buy rating and increased the price target to $425 from the previous $400. The analysts' notes highlighted United Therapeutics' strategic positioning in anticipation of rising competition in the markets for pulmonary arterial hypertension (PAH) and pulmonary hypertension in patients with interstitial lung disease (PH-ILD).
The company completed a $1 billion accelerated share repurchase program and is eyeing upcoming clinical milestones, including the TETON 2 study results, and is awaiting a potential FDA decision on its Centralized Lung Evaluation System in 2025. Despite a slight decrease in worldwide revenue for Remodulin, United Therapeutics is confident in its long-term viability as a preferred treatment for PAH. The company aims to reach a revenue of $4 billion to $6 billion by leveraging its product portfolio and upcoming offerings.
InvestingPro Insights
United Therapeutics Corp (NASDAQ:UTHR) has been showing impressive financial performance, which aligns with the recent insider activity. According to InvestingPro data, the company's revenue growth stands at 25.04% for the last twelve months as of Q3 2024, with a robust gross profit margin of 88.94%. This strong financial position is further reflected in the company's market capitalization of $18.49 billion.
InvestingPro Tips highlight that United Therapeutics has been aggressively buying back shares, which could be seen as a sign of confidence in the company's future prospects. This aligns with the insider transactions mentioned in the article, as executives may feel the stock is undervalued. Additionally, the company holds more cash than debt on its balance sheet, indicating a strong financial position that could support future growth initiatives.
The stock's recent performance has been noteworthy, with a significant 54.19% price return over the past six months. This upward trend is consistent with the high sale prices at which Michael Benkowitz sold his shares.
For investors seeking more comprehensive analysis, InvestingPro offers 20 additional tips for United Therapeutics, providing a deeper understanding of the company's financial health and market position.
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