Rhythm Pharmaceuticals (NASDAQ:RYTM) Announces Earnings Results

Rhythm Pharmaceuticals (NASDAQ:RYTM) released its quarterly earnings data on Tuesday. The company reported ($0.73) EPS for the quarter, beating analysts’ consensus estimates of ($0.81) by $0.08, Zacks reports. The company had revenue of $71.25 million during the quarter, compared to the consensus estimate of $67.66 million. Rhythm Pharmaceuticals had a negative net margin of 85.59% and a negative return on equity of 149.96%. Rhythm Pharmaceuticals’s quarterly revenue was up 46.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.75) EPS.

Here are the key takeaways from Rhythm Pharmaceuticals’ conference call:

• IMCIVREE’s U.S. launch for acquired hypothalamic obesity showed strong early demand, with more than 400 start forms from approximately 300 prescribers in the first 14 weeks. Payers have been supportive, with policies covering about 25% of Medicaid lives and 35% of commercial lives by the end of Q2.
• Global IMCIVREE net product sales rose 19% sequentially to $71.3 million, driven by the acquired HO launch, continued BBS growth, and international patient expansion. Management said reimbursed patients increased more than 20% quarter over quarter.
• Weekly MC4R agonist RM-718 produced an average 11.6% BMI reduction at 16 weeks in seven acquired HO patients, comparable to setmelanotide and bivamelagon, with no generalized hyperpigmentation reported. However, the dataset remains small and included two early discontinuations related to injection-site reactions and nausea.
• Rhythm expects acquired HO approval and launch in Japan by year-end 2026, followed by launches in Germany and other European markets during 2027. The company ended Q2 with approximately $331 million in cash and expects it to fund planned operations for at least 24 months, while continuing to evaluate the development path for Prader-Willi syndrome.

Rhythm Pharmaceuticals Trading Down 0.9%

Rhythm Pharmaceuticals stock traded down $0.95 during mid-day trading on Thursday, hitting $109.76. The company’s stock had a trading volume of 96,647 shares, compared to its average volume of 790,727. The stock’s fifty day moving average is $101.58 and its two-hundred day moving average is $95.85. The firm has a market capitalization of $7.52 billion, a PE ratio of -35.18 and a beta of 1.92. Rhythm Pharmaceuticals has a 1 year low of $74.50 and a 1 year high of $122.20.

Insider Buying and Selling

In other news, Director Lynn A. Tetrault sold 37,000 shares of the company’s stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $100.32, for a total value of $3,711,840.00. Following the transaction, the director owned 7,000 shares of the company’s stock, valued at $702,240. This represents a 84.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 5.90% of the stock is owned by corporate insiders.

Institutional Trading of Rhythm Pharmaceuticals

Several institutional investors and hedge funds have recently bought and sold shares of RYTM. Smartleaf Asset Management LLC boosted its stake in Rhythm Pharmaceuticals by 39.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 399 shares of the company’s stock worth $43,000 after buying an additional 113 shares during the period. Osaic Holdings Inc. raised its stake in shares of Rhythm Pharmaceuticals by 65.9% in the 2nd quarter. Osaic Holdings Inc. now owns 979 shares of the company’s stock valued at $62,000 after acquiring an additional 389 shares during the period. State of Wyoming acquired a new position in shares of Rhythm Pharmaceuticals in the 2nd quarter worth approximately $67,000. Persistent Asset Partners Ltd purchased a new position in shares of Rhythm Pharmaceuticals during the 4th quarter worth approximately $155,000. Finally, Abel Hall LLC purchased a new position in shares of Rhythm Pharmaceuticals during the 4th quarter worth approximately $229,000.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on RYTM shares. Stifel Nicolaus set a $133.00 price target on Rhythm Pharmaceuticals in a report on Monday, June 15th. National Bank Financial set a $160.00 price objective on Rhythm Pharmaceuticals in a research note on Wednesday. Royal Bank Of Canada upped their target price on Rhythm Pharmaceuticals from $141.00 to $155.00 and gave the company an “outperform” rating in a report on Wednesday. Citigroup reiterated a “market outperform” rating on shares of Rhythm Pharmaceuticals in a report on Wednesday. Finally, Citizens Jmp boosted their price target on shares of Rhythm Pharmaceuticals from $155.00 to $160.00 and gave the company a “market outperform” rating in a research report on Wednesday. Fifteen equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $142.38.

About Rhythm Pharmaceuticals

Rhythm Pharmaceuticals, Inc is a clinical?stage biotechnology company dedicated to developing targeted therapies for rare genetic diseases of obesity and metabolic dysfunction. The company’s research focuses on the melanocortin?4 receptor (MC4R) pathway, which plays a central role in regulating appetite, energy expenditure and body weight. Using proprietary peptide technology, Rhythm aims to provide precision treatments to patients with specific genetic variants that disrupt normal weight regulation.

The company’s lead investigational product, setmelanotide, is a selective MC4R agonist designed to restore signaling in patients with deficiencies in genes such as POMC, LEPR and PCSK1.