Rhythm Pharmaceuticals (NASDAQ:RYTM) Shares Gap Down Following Analyst Downgrade

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM)’s share price gapped down prior to trading on Tuesday after Needham & Company LLC lowered their price target on the stock from $130.00 to $114.00. The stock had previously closed at $93.44, but opened at $84.83. Needham & Company LLC currently has a buy rating on the stock. Rhythm Pharmaceuticals shares last traded at $83.8950, with a volume of 1,186,779 shares trading hands.

Other equities analysts also recently issued research reports about the company. Leerink Partners assumed coverage on Rhythm Pharmaceuticals in a research report on Monday, September 14th. They set an “outperform” rating and a $133.00 price target on the stock. Wolfe Research initiated coverage on Rhythm Pharmaceuticals in a research report on Thursday, September 17th. They issued an “outperform” rating for the company. HC Wainwright upped their target price on Rhythm Pharmaceuticals from $105.00 to $130.00 and gave the stock a “buy” rating in a research note on Monday, October 12th. William Blair initiated coverage on Rhythm Pharmaceuticals in a research report on Friday, October 16th. They set an “outperform” rating on the stock. Finally, Royal Bank Of Canada increased their target price on Rhythm Pharmaceuticals from $155.00 to $159.00 and gave the company an “outperform” rating in a research report on Thursday, October 8th. Eighteen investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $142.17.

Insider Activity at Rhythm Pharmaceuticals

In other Rhythm Pharmaceuticals news, CEO David Meeker sold 50,000 shares of the business’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $102.67, for a total transaction of $5,133,500.00. Following the transaction, the chief executive officer owned 239,258 shares of the company’s stock, valued at approximately $24,564,618.86. The trade was a 17.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Yann Mazabraud sold 57,000 shares of the company’s stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $116.15, for a total value of $6,620,550.00. Following the completion of the sale, the executive vice president owned 55,655 shares of the company’s stock, valued at approximately $6,464,328.25. The trade was a 50.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 258,450 shares of company stock valued at $28,796,497 in the last three months. Company insiders own 5.90% of the company’s stock.

Trending Headlines about Rhythm Pharmaceuticals

Here are the key news stories impacting Rhythm Pharmaceuticals this week:

• Positive Sentiment: Reported $10 billion AstraZeneca bid: AstraZeneca reportedly made an offer to acquire Rhythm, potentially at a significant premium to the company’s recent market value. The report is the main near-term catalyst, but no completed deal or acceptance has been announced. Reuters article
• Positive Sentiment: Expanded UK access for IMCIVREE: NICE issued positive guidance extending use of the drug to adults with genetically confirmed Bardet-Biedl syndrome, potentially broadening its eligible patient population. Company announcement
• Positive Sentiment: Analyst optimism and growth potential: Guggenheim raised its price target to $147 with a Buy rating, while RBC said IMCIVREE could reach $2 billion in worldwide sales by 2030. RBC sales outlook
• Positive Sentiment: Quarterly results topped expectations: Rhythm reported a smaller-than-expected per-share loss and revenue above consensus, supporting the company’s commercial growth narrative. Q3 earnings highlights
• Neutral Sentiment: Investors may continue weighing the reported bid against the possibility that negotiations do not result in a deal; the report alone does not establish a final purchase price or outcome. Wall Street Journal report

Institutional Investors Weigh In On Rhythm Pharmaceuticals

Several hedge funds and other institutional investors have recently bought and sold shares of RYTM. GAMMA Investing LLC boosted its position in shares of Rhythm Pharmaceuticals by 36.3% during the second quarter. GAMMA Investing LLC now owns 364 shares of the company’s stock worth $40,000 after buying an additional 97 shares during the period. EverSource Wealth Advisors LLC grew its stake in shares of Rhythm Pharmaceuticals by 106.4% in the first quarter. EverSource Wealth Advisors LLC now owns 549 shares of the company’s stock valued at $48,000 after buying an additional 283 shares in the last quarter. Global Retirement Partners LLC purchased a new stake in shares of Rhythm Pharmaceuticals in the 2nd quarter valued at $51,000. Pinnacle Wealth Planning Services Inc. raised its holdings in shares of Rhythm Pharmaceuticals by 894.0% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 666 shares of the company’s stock valued at $63,000 after buying an additional 599 shares during the period. Finally, Nisa Investment Advisors LLC raised its holdings in shares of Rhythm Pharmaceuticals by 9.1% in the 3rd quarter. Nisa Investment Advisors LLC now owns 1,630 shares of the company’s stock valued at $155,000 after buying an additional 136 shares during the period.

Rhythm Pharmaceuticals Stock Performance

The company has a 50 day moving average of $96.29 and a 200-day moving average of $97.18. The stock has a market cap of $7.20 billion, a price-to-earnings ratio of -36.21 and a beta of 2.17.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last released its earnings results on Tuesday, November 3rd. The company reported ($0.61) earnings per share for the quarter, beating the consensus estimate of ($0.71) by $0.10. The company had revenue of $92.13 million during the quarter, compared to the consensus estimate of $85.56 million. Rhythm Pharmaceuticals had a negative return on equity of 159.32% and a negative net margin of 69.03%. Rhythm Pharmaceuticals’s revenue was up 79.6% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.82) EPS. On average, research analysts anticipate that Rhythm Pharmaceuticals, Inc. will post -2.77 EPS for the current year.

About Rhythm Pharmaceuticals

Rhythm Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing therapies for rare genetic diseases of obesity and related metabolic disorders. The company’s work is based on the melanocortin-4 receptor (MC4R) pathway, which plays an important role in regulating hunger and energy balance.

Rhythm’s principal product is IMCIVREE (setmelanotide), a targeted therapy designed to restore impaired MC4R pathway signaling. In the United States, IMCIVREE is approved for chronic weight management in adults and children at least 6 years old with obesity caused by certain genetic deficiencies, including POMC, PCSK1, or LEPR deficiency, as well as Bardet-Biedl syndrome.