This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Insiders Love Right Now

Stocks in this article: NS KW NIHD UTHR EBIX

United Therapeutics

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

A stock in the biotechnology and drugs complex whose insiders are snapping up a decent amount of shares is United Therapeutics (UTHR), a biotechnology company focused on the development and commercialization of products to address the unmet medical needs of patients. Insiders are buying into weakness here since the stock is off by over 30% in 2011.

United Therapeutics has a market cap of $2.42 billion and an enterprise value of $2.01 billion. This stock trades at a cheap valuation; its trailing price-to-earnings is 13.87, and its forward price-to-earnings is 10.44. This is a cash-rich company, with a total cash position of $694.60 million and total debt of $317.47 million. After you back out the debt, United Therapeutics has $377.23 million in cash on their books.

The CEO and director just bought 12,994 shares, or $539,178 worth of stock, at $40.98 to $42.19 per share. The same CEO also bought over $2 million worth of stock since the start of December.

From a technical standpoint, UTHR is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock hit a low in October of $36.55 a share and since then it has rallied strong to its current price of just over $41.40 a share. As long as UTHR can hold above its 50-day moving average of $41.10, then the stock sets up to test a near-term breakout.

If you're bullish on UTHR, I would get long once it breaks out above some overhead resistance at $42.68 and $44.96 on high-volume. Look for a high-volume move above those levels that hits near or above its three-month average action of 1,364,600 shares. If we get that action, then this stock could setup to make a run towards $50 to $52.95 (the 200-day) a share. I would simply use a mental stop that's a few percentage points below the 50-day if you get long UTHR in the near future.

United Therapeutics shows up on a recent list of 5 Biotech Stocks for 2012 and was featured recently in " 5 Low-Risk Stocks to Buy for 2012."

5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs