Rhythm Pharmaceuticals (NASDAQ:RYTM) Sees Strong Trading Volume on Analyst Upgrade

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) shares saw strong trading volume on Thursday after Citizens Jmp raised their price target on the stock from $160.00 to $166.00. Citizens Jmp currently has a market outperform rating on the stock. 1,160,063 shares were traded during mid-day trading, an increase of 44% from the average daily volume of 807,115 shares. The stock last traded at $108.13 and had previously closed at $110.68.

A number of other equities analysts have also recently commented on RYTM. Citigroup reaffirmed a “market outperform” rating on shares of Rhythm Pharmaceuticals in a report on Wednesday, August 5th. National Bank Financial set a $160.00 price target on shares of Rhythm Pharmaceuticals in a research note on Wednesday, August 5th. JPMorgan Chase & Co. lowered their price objective on shares of Rhythm Pharmaceuticals from $146.00 to $145.00 and set an “overweight” rating on the stock in a research report on Thursday, October 15th. Deutsche Bank Aktiengesellschaft began coverage on shares of Rhythm Pharmaceuticals in a research note on Friday, August 28th. They issued a “hold” rating and a $120.00 price objective on the stock. Finally, Leerink Partners started coverage on shares of Rhythm Pharmaceuticals in a report on Monday, September 14th. They issued an “outperform” rating and a $133.00 target price for the company. Eighteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $141.94.

Insider Buying and Selling at Rhythm Pharmaceuticals

In related news, insider Joseph Shulman sold 5,079 shares of Rhythm Pharmaceuticals stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $119.75, for a total value of $608,210.25. Following the transaction, the insider directly owned 15,915 shares in the company, valued at $1,905,821.25. This trade represents a 24.19% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David P. Meeker sold 50,000 shares of the business’s stock in a transaction on Monday, September 14th. The shares were sold at an average price of $102.67, for a total transaction of $5,133,500.00. Following the completion of the transaction, the chief executive officer directly owned 239,258 shares in the company, valued at $24,564,618.86. This represents a 17.29% 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. Over the last three months, insiders have sold 258,450 shares of company stock valued at $28,796,497. Corporate insiders own 5.90% of the company’s stock.

Key Rhythm Pharmaceuticals News

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

• Positive Sentiment: Reported takeover offer: AstraZeneca’s reported offer would value Rhythm at roughly $10 billion and add its rare-disease treatments to AstraZeneca’s portfolio. The report triggered a sharp move in RYTM shares and a temporary trading halt. Reuters article on reported AstraZeneca offer
• Positive Sentiment: Expanded UK treatment access: NICE issued positive updated guidance extending IMCIVREE use to adults with genetically confirmed Bardet-Biedl syndrome, potentially broadening access to the treatment. Rhythm Pharmaceuticals NICE guidance announcement
• Positive Sentiment: Sales potential: RBC said IMCIVREE could reach $2 billion in worldwide sales by 2030, reinforcing the commercial-growth case for Rhythm. RBC sales forecast article
• Positive Sentiment: Analyst support: Citizens JMP raised its price target to $166 and maintained a market-outperform rating. Citizens JMP rating information
• Neutral Sentiment: Quarterly results were mixed for sentiment: Rhythm reported a smaller-than-expected Q3 loss and revenue above estimates, but shares had slipped after the earnings announcement. Q3 earnings flash
• Negative Sentiment: Lower target from Needham: Needham cut its price target from $130 to $114, while retaining a Buy rating—an offsetting caution amid the takeover speculation. Needham rating information

Institutional Trading of Rhythm Pharmaceuticals

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

Rhythm Pharmaceuticals Price Performance

The firm’s 50-day simple moving average is $96.29 and its two-hundred day simple moving average is $97.18. The company has a market capitalization of $7.34 billion, a price-to-earnings ratio of -37.12 and a beta of 2.17.

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