United Therapeutics has a market cap of $2.65 billion and an enterprise value of $2.44 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 10.50 and a forward price-to-earnings of 9.46. Its estimated growth rate for this year is 44.5%, and for next year it's pegged at 4.3%. This is a cash-rich company, since the total cash position on its balance sheet is $503.46 million and its total debt is $273.37 million. After you back out the debt, this company has a net cash position of $230.09 million.
The CEO just
bought 9,000 shares, or about $466,000 worth of stock, at $51.44 to $52.12 per share.
From a technical perspective, UTHR is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently bounced right off its 200-day at $50.06 a share and back above its 50-day at $51.28 a share. That bounce is quickly pushing shares of UTHR within range of triggering a near-term breakout trade.
If you're in the bull camp on UTHR, then I would look for long-biased if this stock manages to break out above some near-term overhead resistance levels at $53.48 to $54.23 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 771,969 shares. If that breakout triggers soon, then UTHR will set up to re-test or possibly take out its next major overhead resistance levels $58.38 to $59 a share. Any move above $59 will then push UTHR into new 52-week high territory, which is bullish technical price action.
Yet another name in the biotechnology and drugs complex that insiders are snapping up a huge amount of stock in is
. This company is focused on the discovery, development and commercialization of therapeutic products for diseases such as diabetes and cancer. Insiders are buying this stock into weakness, since shares are down by 20% in the last three months.
Mannkind has a market cap of $451 million and an enterprise value of $872 million. Its estimated growth rate for this year is 33.3%, and for next year it's pegged at 48.9%. This is not a cash-rich company, since the total cash position on its balance sheet is $2.12 million and its total debt is $434.82 million.