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

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM)’s share price gapped down before the market opened 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.

Other equities research analysts also recently issued research reports about the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rhythm Pharmaceuticals in a research note on Thursday, October 15th. Royal Bank Of Canada lifted their price target on shares of Rhythm Pharmaceuticals from $155.00 to $159.00 and gave the stock an “outperform” rating in a research report on Thursday, October 8th. National Bank Financial set a $160.00 price target on shares of Rhythm Pharmaceuticals in a research report on Wednesday, August 5th. Citizens Jmp boosted their price target on shares of Rhythm Pharmaceuticals from $155.00 to $160.00 and gave the company a “market outperform” rating in a report on Wednesday, August 5th. Finally, Leerink Partners began coverage on shares of Rhythm Pharmaceuticals in a research report on Monday, September 14th. They issued an “outperform” rating and a $133.00 price objective for the company. Eighteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Rhythm Pharmaceuticals currently has an average rating of “Moderate Buy” and a consensus target price of $142.17.

Insider Buying and Selling at Rhythm Pharmaceuticals

In related news, EVP Jennifer Lee sold 75,834 shares of the business’s stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $117.38, for a total value of $8,901,394.92. Following the completion of the transaction, the executive vice president directly owned 54,233 shares in the company, valued at approximately $6,365,869.54. The trade was a 58.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Alastair Garfield sold 7,763 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $117.57, for a total value of $912,695.91. Following the sale, the insider directly owned 2,295 shares of the company’s stock, valued at approximately $269,823.15. The trade was a 77.18% 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 worth $28,796,497 over the last three months. Company 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 $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 large investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in Rhythm Pharmaceuticals in the second quarter valued at $683,601,000. Primecap Management Co. CA acquired a new stake in Rhythm Pharmaceuticals in the 2nd quarter valued at $351,838,000. Jupiter Topco LLC acquired a new stake in Rhythm Pharmaceuticals in the 2nd quarter valued at $102,752,000. Pictet Asset Management Holding SA lifted its position in Rhythm Pharmaceuticals by 2.0% during the 3rd quarter. Pictet Asset Management Holding SA now owns 976,487 shares of the company’s stock worth $93,019,000 after buying an additional 18,702 shares in the last quarter. Finally, Siren L.L.C. lifted its position in Rhythm Pharmaceuticals by 45.1% during the 1st quarter. Siren L.L.C. now owns 725,511 shares of the company’s stock worth $63,098,000 after buying an additional 225,536 shares in the last quarter.

Rhythm Pharmaceuticals Stock Performance

The firm’s 50-day simple moving average is $96.29 and its 200 day simple moving average is $97.18. The stock has a market capitalization of $7.20 billion, a P/E ratio of -36.21 and a beta of 2.17.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last announced its quarterly earnings data 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 analysts’ expectations 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 for the quarter was up 79.6% compared to the same quarter last year. During the same quarter last year, the company earned ($0.82) EPS. As a group, research analysts expect that Rhythm Pharmaceuticals, Inc. will post -2.77 earnings per share for the current fiscal 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.