Martine A. Rothblatt, the Chairperson and CEO of United Therapeutics Corp (NASDAQ:UTHR), has recently sold a significant amount of company stock, according to the latest SEC filings. The transactions, which took place on April 25 and 26, involved the sale of United Therapeutics shares at prices ranging from $234.36 to $237.00, totaling over $1.6 million.
The sales were executed in multiple trades, with the prices reported as weighted averages. On April 25, Rothblatt sold 2056 shares at an average price of $235.02, 1203 shares at $236.04, and 341 shares at $236.84. The following day, on April 26, the CEO continued to sell, offloading 835 shares at an average price of $234.36, 2271 shares at $235.23, 417 shares at $236.34, and 77 shares at a flat rate of $237.00.
In addition to these sales, Rothblatt also acquired shares through the exercise of stock options. On both April 25 and 26, she exercised options to purchase 3600 shares at a fixed price of $129.49 per share, amounting to a total of $932,328.
The transactions were conducted under a pre-arranged 10b5-1 trading plan, which was established on August 4, 2023. This plan is set to continue until the earlier of the exhaustion of a tranche of 723,869 stock options that expire on December 31, 2024, or until August 31, 2024.
Investors often keep a close eye on insider transactions like these for insights into executive sentiment about the company's future performance. While the sales represent a significant amount of stock, Rothblatt still retains a substantial number of shares in United Therapeutics following these transactions.
For further details on the individual trades, including the number of shares sold at specific prices, the SEC filing indicates that the reporting person is willing to provide full information upon request to the SEC staff, the issuer, or a security holder of the issuer.
The SEC filing was signed on behalf of Martine A. Rothblatt by John S. Hess (NYSE:HES), Jr., under Power of Attorney, dated April 29, 2024.
InvestingPro Insights
Following the recent insider transactions by United Therapeutics Corp's (NASDAQ:UTHR) CEO Martine A. Rothblatt, investors may be looking for additional data points to assess the company's financial health and stock performance. According to InvestingPro, United Therapeutics holds more cash than debt on its balance sheet, which suggests a strong financial position that could reassure shareholders in light of the insider sales.
Moreover, the company has been recognized for its impressive gross profit margins, which, as per the last twelve months as of Q4 2023, stood at a robust 88.94%. This high margin is a testament to the company's ability to manage its cost of goods sold effectively and could be a factor contributing to the CEO's confidence in executing stock transactions under a pre-arranged trading plan.
InvestingPro Data further reveals that United Therapeutics is trading at a low P/E ratio relative to near-term earnings growth, with an adjusted P/E ratio of 11.49 and a PEG ratio of 0.35 as of the last twelve months of Q4 2023. Such metrics may indicate that the stock is potentially undervalued given its earnings growth prospects, which can be an attractive point for potential investors.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that could provide further insights into United Therapeutics' stock performance and financial stability. For instance, the company has been profitable over the last twelve months and analysts predict it will remain profitable this year. With a total of 9 additional InvestingPro Tips for UTHR, including insights on stock volatility and cash flow, investors can gain a comprehensive view of the company's prospects.
To access these insights and more, readers can visit the dedicated page for United Therapeutics on InvestingPro. And don't forget, using the coupon code PRONEWS24 will get you an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a valuable tool for those looking to make informed investment decisions.
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