Rhythm Pharmaceuticals (NASDAQ:RYTM) Stock Price Crosses Above 200 Day Moving Average Following Analyst Downgrade

Shares of Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) crossed above its 200-day moving average during trading on Wednesday after Citizens Jmp raised their price target on the stock from $160.00 to $166.00. The stock has a 200-day moving average of $97.18 and traded as high as $110.68. Citizens Jmp currently has a market outperform rating on the stock. Rhythm Pharmaceuticals shares last traded at $110.68, with a volume of 5,480,755 shares traded.

Several other brokerages have also commented on RYTM. JPMorgan Chase & Co. decreased their price target on Rhythm Pharmaceuticals from $146.00 to $145.00 and set an “overweight” rating on the stock in a research note on Thursday, October 15th. Royal Bank Of Canada reissued an “outperform” rating on shares of Rhythm Pharmaceuticals in a research report on Wednesday. Oppenheimer restated a “market perform” rating on shares of Rhythm Pharmaceuticals in a report on Wednesday. Wolfe Research started coverage on shares of Rhythm Pharmaceuticals in a report on Thursday, September 17th. They issued an “outperform” rating on the stock. Finally, National Bank Financial set a $160.00 target price on shares of Rhythm Pharmaceuticals in a research report on Wednesday, August 5th. Eighteen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $141.94.

Insider Buying and Selling

In other news, CFO Hunter C. Smith sold 62,774 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $105.46, for a total value of $6,620,146.04. Following the completion of the transaction, the chief financial officer owned 114,024 shares of the company’s stock, valued at approximately $12,024,971.04. This trade represents a 35.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Alastair Garfield sold 7,763 shares of Rhythm Pharmaceuticals stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $117.57, for a total transaction of $912,695.91. Following the completion of the transaction, the insider owned 2,295 shares of the company’s stock, valued at $269,823.15. This trade represents a 77.18% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 258,450 shares of company stock worth $28,796,497 over the last 90 days. 5.90% of the stock is owned by insiders.

Trending Headlines about Rhythm Pharmaceuticals

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

• Positive Sentiment: Reported acquisition offer: The Wall Street Journal and Reuters reported that AstraZeneca recently offered about $10 billion for Rhythm, potentially giving investors a substantial takeover catalyst. Reuters report Wall Street Journal article
• Positive Sentiment: Expanded coverage potential: NICE issued positive guidance expanding IMCIVREE coverage in England to include adults with genetically confirmed Bardet-Biedl syndrome, potentially widening access to the treatment. Company announcement
• Positive Sentiment: Quarterly results beat expectations: Third-quarter revenue was $92.1 million, up 79.6% year over year and ahead of estimates; the $0.61-per-share loss was also narrower than expected. Quarterly results
• Neutral Sentiment: Pipeline funding and revised license terms: Rhythm secured up to $750 million in financing and reduced LG Chem’s royalty rate to 1%, while committing to $350 million in fixed payments over four years. The arrangement supports development but includes significant future payments. License amendment
• Negative Sentiment: Recent earnings-related volatility: Rhythm’s shares reportedly fell after its quarterly report, and Needham lowered its price target to $114 despite maintaining a Buy rating. The takeover report has since become the more prominent catalyst. Earnings reaction

Hedge Funds Weigh In On Rhythm Pharmaceuticals

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of Rhythm Pharmaceuticals in the second quarter worth $683,601,000. Primecap Management Co. CA purchased a new stake in shares of Rhythm Pharmaceuticals during the second quarter worth $351,838,000. Jupiter Topco LLC acquired a new stake in shares of Rhythm Pharmaceuticals in the second quarter valued at $102,752,000. Bank of America Corp DE raised its stake in shares of Rhythm Pharmaceuticals by 180.0% in the first quarter. Bank of America Corp DE now owns 628,667 shares of the company’s stock valued at $54,675,000 after acquiring an additional 404,183 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in Rhythm Pharmaceuticals in the second quarter valued at $43,751,000.

Rhythm Pharmaceuticals Stock Up 28.0%

The stock has a market capitalization of $7.58 billion, a PE ratio of -38.17 and a beta of 2.17. The stock has a fifty day moving average of $96.29 and a 200-day moving average of $97.18.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last issued its quarterly earnings results on Tuesday, November 3rd. The company reported ($0.61) earnings per share for the quarter, topping the consensus estimate of ($0.71) by $0.10. The company had revenue of $92.13 million for 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% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.82) EPS. Equities research analysts expect that Rhythm Pharmaceuticals, Inc. will post -2.77 EPS for the current year.

Rhythm Pharmaceuticals Company Profile

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.