Rhythm Pharmaceuticals (NASDAQ:RYTM) Trading Down 4.1% – Should You Sell?

Shares of Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) fell 4.1% on Tuesday . The stock traded as low as $59.90 and last traded at $59.80. 204,411 shares changed hands during mid-day trading, a decline of 68% from the average session volume of 633,966 shares. The stock had previously closed at $62.36.

Analysts Set New Price Targets

A number of brokerages recently weighed in on RYTM. Bank of America raised shares of Rhythm Pharmaceuticals from a “neutral” rating to a “buy” rating and set a $63.00 target price on the stock in a research note on Monday, April 7th. Morgan Stanley reaffirmed an “overweight” rating and set a $72.00 price objective on shares of Rhythm Pharmaceuticals in a report on Friday, March 7th. Needham & Company LLC increased their target price on Rhythm Pharmaceuticals from $66.00 to $72.00 and gave the company a “buy” rating in a research note on Wednesday, May 7th. Stifel Nicolaus initiated coverage on Rhythm Pharmaceuticals in a research report on Wednesday, March 5th. They set a “buy” rating and a $78.00 price target on the stock. Finally, HC Wainwright reiterated a “buy” rating and issued a $80.00 price objective (up from $70.00) on shares of Rhythm Pharmaceuticals in a report on Tuesday, April 8th. Thirteen equities research analysts have rated the stock with a buy rating, According to MarketBeat, the company presently has an average rating of “Buy” and a consensus target price of $75.38.

Rhythm Pharmaceuticals Stock Performance

The stock has a market capitalization of $3.76 billion, a P/E ratio of -13.65 and a beta of 2.36. The business has a 50-day moving average price of $58.97 and a 200 day moving average price of $57.59.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last released its quarterly earnings data on Wednesday, May 7th. The company reported ($0.81) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.69) by ($0.12). The firm had revenue of $37.72 million for the quarter, compared to the consensus estimate of $40.43 million. Rhythm Pharmaceuticals had a negative net margin of 230.07% and a negative return on equity of 367.36%. The firm’s revenue for the quarter was up 25.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($2.35) earnings per share. As a group, research analysts forecast that Rhythm Pharmaceuticals, Inc. will post -4.32 earnings per share for the current fiscal year.

Insider Activity at Rhythm Pharmaceuticals

In related news, EVP Yann Mazabraud sold 75,000 shares of the stock in a transaction that occurred on Friday, March 14th. The shares were sold at an average price of $51.48, for a total transaction of $3,861,000.00. Following the transaction, the executive vice president now owns 40,370 shares in the company, valued at $2,078,247.60. This represents a 65.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Pamela J. Cramer sold 20,760 shares of the stock in a transaction on Tuesday, April 8th. The shares were sold at an average price of $60.14, for a total value of $1,248,506.40. Following the transaction, the insider now directly owns 19,209 shares in the company, valued at $1,155,229.26. The trade was a 51.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 127,630 shares of company stock valued at $7,107,346 over the last ninety days. Insiders own 6.10% of the company’s stock.

Institutional Investors Weigh In On Rhythm Pharmaceuticals

Large investors have recently made changes to their positions in the company. Victory Capital Management Inc. lifted its stake in shares of Rhythm Pharmaceuticals by 1.0% in the 1st quarter. Victory Capital Management Inc. now owns 17,326 shares of the company’s stock worth $918,000 after purchasing an additional 174 shares during the period. Xponance Inc. raised its position in Rhythm Pharmaceuticals by 4.7% in the first quarter. Xponance Inc. now owns 4,365 shares of the company’s stock worth $231,000 after acquiring an additional 197 shares during the period. Principal Financial Group Inc. raised its position in Rhythm Pharmaceuticals by 0.7% in the first quarter. Principal Financial Group Inc. now owns 37,156 shares of the company’s stock worth $1,968,000 after acquiring an additional 272 shares during the period. GF Fund Management CO. LTD. boosted its stake in shares of Rhythm Pharmaceuticals by 21.9% during the 1st quarter. GF Fund Management CO. LTD. now owns 1,573 shares of the company’s stock worth $83,000 after acquiring an additional 283 shares during the last quarter. Finally, Two Sigma Advisers LP grew its position in shares of Rhythm Pharmaceuticals by 2.3% during the 4th quarter. Two Sigma Advisers LP now owns 13,100 shares of the company’s stock valued at $733,000 after acquiring an additional 300 shares during the period.

About Rhythm Pharmaceuticals

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.