Rhythm Pharmaceuticals (NASDAQ:RYTM) Sees Large Volume Increase – Still a Buy?

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) shares saw an uptick in trading volume on Tuesday . 661,673 shares traded hands during mid-day trading, an increase of 27% from the previous session’s volume of 521,279 shares.The stock last traded at $56.68 and had previously closed at $54.54.

Wall Street Analysts Forecast Growth

RYTM has been the topic of several analyst reports. Canaccord Genuity Group reaffirmed a “buy” rating and issued a $80.00 price objective on shares of Rhythm Pharmaceuticals in a research report on Tuesday, November 19th. Bank of America boosted their target price on shares of Rhythm Pharmaceuticals from $48.00 to $52.00 and gave the company a “neutral” rating in a report on Monday, October 14th. The Goldman Sachs Group increased their price target on shares of Rhythm Pharmaceuticals from $59.00 to $66.00 and gave the stock a “buy” rating in a research note on Thursday, December 5th. Jefferies Financial Group started coverage on shares of Rhythm Pharmaceuticals in a research note on Thursday, January 2nd. They set a “buy” rating and a $80.00 price objective for the company. Finally, Guggenheim initiated coverage on Rhythm Pharmaceuticals in a research report on Monday, October 21st. They issued a “buy” rating and a $70.00 target price on the stock. One analyst has rated the stock with a hold rating and ten have given a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $68.09.

Rhythm Pharmaceuticals Price Performance

The company has a market cap of $3.51 billion, a PE ratio of -13.16 and a beta of 2.16. The company has a 50-day moving average price of $57.78 and a two-hundred day moving average price of $52.35.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last issued its quarterly earnings data on Tuesday, November 5th. The company reported ($0.73) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.80) by $0.07. Rhythm Pharmaceuticals had a negative net margin of 230.07% and a negative return on equity of 367.36%. The company had revenue of $33.20 million during the quarter, compared to the consensus estimate of $32.52 million. During the same quarter last year, the company earned ($0.76) earnings per share. Rhythm Pharmaceuticals’s revenue for the quarter was up 47.6% on a year-over-year basis. On average, equities research analysts anticipate that Rhythm Pharmaceuticals, Inc. will post -4.33 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Joseph Shulman sold 13,281 shares of the company’s stock in a transaction on Monday, November 11th. The shares were sold at an average price of $66.44, for a total value of $882,389.64. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Pamela J. Cramer sold 4,688 shares of the firm’s stock in a transaction on Thursday, November 7th. The stock was sold at an average price of $65.00, for a total transaction of $304,720.00. Following the transaction, the insider now directly owns 13,500 shares of the company’s stock, valued at approximately $877,500. This represents a 25.78 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 84,830 shares of company stock valued at $5,622,000 in the last quarter. Company insiders own 5.60% of the company’s stock.

Hedge Funds Weigh In On Rhythm Pharmaceuticals

Several large investors have recently modified their holdings of RYTM. Castleark Management LLC raised its stake in Rhythm Pharmaceuticals by 1.3% during the third quarter. Castleark Management LLC now owns 19,260 shares of the company’s stock valued at $1,009,000 after buying an additional 250 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. raised its position in shares of Rhythm Pharmaceuticals by 21.5% during the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 2,211 shares of the company’s stock valued at $114,000 after acquiring an additional 391 shares in the last quarter. Raleigh Capital Management Inc. bought a new position in Rhythm Pharmaceuticals during the fourth quarter worth $28,000. ORG Wealth Partners LLC acquired a new position in Rhythm Pharmaceuticals in the third quarter worth $63,000. Finally, The Manufacturers Life Insurance Company increased its stake in Rhythm Pharmaceuticals by 3.5% during the second quarter. The Manufacturers Life Insurance Company now owns 49,291 shares of the company’s stock valued at $2,024,000 after purchasing an additional 1,667 shares during the last quarter.

About Rhythm Pharmaceuticals

Rhythm Pharmaceuticals, Inc, a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases. The company's lead product candidate is IMCIVREE (setmelanotide), a rare melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, and Bardet-Biedl and Alström syndrome.