Rhythm Pharmaceuticals (NASDAQ:RYTM) Shares Gap Down on Disappointing Earnings

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM)’s stock price gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $43.88, but opened at $40.86. Rhythm Pharmaceuticals shares last traded at $39.34, with a volume of 84,195 shares trading hands.

The company reported ($2.35) EPS for the quarter, missing the consensus estimate of ($2.34) by ($0.01). Rhythm Pharmaceuticals had a negative return on equity of 96.02% and a negative net margin of 238.50%. The company had revenue of $26.00 million during the quarter, compared to analysts’ expectations of $26.90 million. During the same quarter in the prior year, the business posted ($0.92) EPS. The company’s revenue was up 126.1% on a year-over-year basis.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Wells Fargo & Company decreased their price target on Rhythm Pharmaceuticals from $53.00 to $52.00 and set an “overweight” rating on the stock in a report on Thursday, April 18th. Canaccord Genuity Group lowered their target price on shares of Rhythm Pharmaceuticals from $80.00 to $79.00 and set a “buy” rating for the company in a report on Wednesday. The Goldman Sachs Group upped their price target on shares of Rhythm Pharmaceuticals from $42.00 to $52.00 and gave the company a “buy” rating in a report on Thursday, January 25th. Bank of America downgraded shares of Rhythm Pharmaceuticals from a “buy” rating to a “neutral” rating and decreased their price objective for the stock from $49.00 to $42.00 in a research note on Wednesday. Finally, Needham & Company LLC cut their target price on Rhythm Pharmaceuticals from $50.00 to $46.00 and set a “buy” rating on the stock in a research note on Tuesday. One research analyst has rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $54.33.

Insider Buying and Selling

In other Rhythm Pharmaceuticals news, insider Joseph Shulman sold 18,235 shares of the company’s stock in a transaction dated Thursday, March 21st. The shares were sold at an average price of $40.34, for a total value of $735,599.90. Following the transaction, the insider now directly owns 30 shares in the company, valued at approximately $1,210.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In other Rhythm Pharmaceuticals news, insider Joseph Shulman sold 18,235 shares of the firm’s stock in a transaction on Thursday, March 21st. The stock was sold at an average price of $40.34, for a total transaction of $735,599.90. Following the transaction, the insider now directly owns 30 shares in the company, valued at approximately $1,210.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Hunter C. Smith sold 15,515 shares of the company’s stock in a transaction on Tuesday, March 19th. The stock was sold at an average price of $39.22, for a total value of $608,498.30. Following the completion of the sale, the chief financial officer now owns 97,939 shares of the company’s stock, valued at $3,841,167.58. The disclosure for this sale can be found here. Insiders have sold 172,069 shares of company stock valued at $7,626,355 in the last 90 days. Company insiders own 4.70% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RYTM. Vanguard Group Inc. lifted its position in shares of Rhythm Pharmaceuticals by 7.0% in the 4th quarter. Vanguard Group Inc. now owns 3,226,938 shares of the company’s stock worth $148,342,000 after purchasing an additional 212,370 shares during the period. Polar Capital Holdings Plc boosted its position in Rhythm Pharmaceuticals by 11.1% during the 3rd quarter. Polar Capital Holdings Plc now owns 2,500,000 shares of the company’s stock valued at $57,312,000 after acquiring an additional 250,000 shares in the last quarter. Perceptive Advisors LLC boosted its position in Rhythm Pharmaceuticals by 465.6% during the 4th quarter. Perceptive Advisors LLC now owns 2,154,110 shares of the company’s stock valued at $99,024,000 after acquiring an additional 1,773,282 shares in the last quarter. FMR LLC increased its holdings in shares of Rhythm Pharmaceuticals by 23.8% in the 3rd quarter. FMR LLC now owns 868,474 shares of the company’s stock valued at $19,910,000 after acquiring an additional 166,940 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its position in shares of Rhythm Pharmaceuticals by 3.4% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 397,685 shares of the company’s stock worth $18,282,000 after acquiring an additional 12,937 shares in the last quarter.

Rhythm Pharmaceuticals Stock Performance

The business has a 50 day moving average of $40.68 and a two-hundred day moving average of $39.85. The stock has a market capitalization of $2.37 billion, a PE ratio of -12.16 and a beta of 1.94.

Rhythm Pharmaceuticals Company Profile

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.