The financial world has been abuzz with news that LPL Financial LLC, a leading institutional investor, has reduced its holdings in United Therapeutics Co. (NASDAQ:UTHR) by 8.6%. This development is particularly notable because United Therapeutics is one of the most prominent biotechnology firms in the industry today and its products are geared towards patients with chronic and life-threatening conditions.
According to recent filings with the Securities and Exchange Commission (SEC), LPL Financial LLC owned 5,281 shares of United Therapeutics’ stock at the end of the 4th quarter, after selling 494 shares during the period. The value of these holdings was estimated to be $1.47 million.
United Therapeutics Corp., founded by Martine A. Rothblatt on June 26, 1996, develops and commercializes various products for patients facing complex medical challenges such as pulmonary hypertension and neuroblastoma. Some of its products include Adcirca, Orenitram, Remodulin, TYVASO, and Unituxin.
Despite this recent downturn in investor confidence evidenced by LPL Financial LLC’s actions, the market for United Therapeutics Co.’s shares remains relatively stable. Though NASDAQ:UTHR opened at $212.14 on May 26th – a slightly lower number than the previous day’s close – its different moving averages have not changed dramatically over longer periods of time.
While United Therapeutics Co.’s market capitalization stands at $9.94 billion as of writing this article, it is worth noting that there are several key factors affecting how investors view biotechnology stocks going forward into this decade.
One thing is clear – LPL Financial LLC’s decrease in share ownership serves as a warning sign to potential future investors looking to put their money into new or existing ventures within this space. Only time will tell what lies ahead for companies like United Therapeutics Co., but in the meantime, it is important to keep a watchful eye on this ever-evolving industry.
Institutional Investors Show Interest in United Therapeutics’ Biotech Products
Biotechnology company United Therapeutics Corp. has seen a recent increase in institutional investors taking stakes in the business. Great West Life Assurance Co. Can increased its stake by 8.9% during the first quarter, while Canada Pension Plan Investment Board lifted its shares by 229.6%. Prudential PLC also revealed that it had taken a new stake in the firm during this period with an estimated value of $1,160,000. Analysts have suggested that this flurry of investment could be due to the creation and commercialization of products for patients with chronic and life-threatening conditions such as Adcirca, Orenitram, Remodulin, TYVASO, and Unituxin.
United Therapeutics was founded in 1996 by Martine A. Rothblatt and is headquartered in Silver Spring, Maryland. The biotech corporation’s sales have been performing well since most recently reporting its earnings data on May 3rd 2017 where they revealed revenue figures of $506.90 million for the quarter—up 9.7% YoY—with an EPS of $4.86—a figure which surpassed analyst estimates comfortably.
Traditionally associated with higher risk investments, hedge funds make up over 95% of shareholders investing in United Therapeutics at the moment, according to Bloomberg data released on May 26th 2017.
Discussion about this post