Rhythm Pharmaceuticals (NASDAQ:RYTM) Sees Large Volume Increase on Analyst Upgrade

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) saw an uptick in 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 traded hands during 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.

RYTM has been the subject of several other research reports. Citigroup reaffirmed a “market outperform” rating 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 note on Thursday, October 15th. Wolfe Research started coverage on shares of Rhythm Pharmaceuticals in a report on Thursday, September 17th. They set an “outperform” rating for the company. Weiss Ratings restated a “sell (d-)” rating on shares of Rhythm Pharmaceuticals in a research report on Thursday, October 15th. Finally, Needham & Company LLC reduced their price target on shares of Rhythm Pharmaceuticals from $130.00 to $114.00 and set a “buy” rating on the stock in a report on Tuesday. Eighteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Rhythm Pharmaceuticals currently has a consensus rating of “Moderate Buy” and an average target price of $141.94.

Insider Activity at Rhythm Pharmaceuticals

In related news, EVP Yann Mazabraud sold 57,000 shares of the stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $116.15, for a total transaction of $6,620,550.00. Following the sale, the executive vice president owned 55,655 shares of the company’s stock, valued at $6,464,328.25. This trade represents a 50.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Hunter C. Smith sold 62,774 shares of Rhythm Pharmaceuticals stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $105.46, for a total value of $6,620,146.04. Following the sale, the chief financial officer owned 114,024 shares of the company’s stock, valued at approximately $12,024,971.04. This represents a 35.51% decrease in their position. 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 valued at $28,796,497 in the last ninety days. 5.90% of the stock is owned by insiders.

Rhythm Pharmaceuticals News Roundup

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 Inflows and Outflows

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

Rhythm Pharmaceuticals Price Performance

The stock’s 50-day moving average is $96.29 and its 200-day moving average is $97.18. The stock has a market cap of $7.34 billion, a price-to-earnings ratio of -37.12 and a beta of 2.17.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last released its earnings results on Tuesday, November 3rd. The company reported ($0.61) EPS for the quarter, topping the consensus estimate of ($0.71) by $0.10. The firm 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%. Rhythm Pharmaceuticals’s revenue for the quarter was up 79.6% on a year-over-year basis. During the same period in the previous year, the company earned ($0.82) EPS. Analysts predict that Rhythm Pharmaceuticals, Inc. will post -2.77 EPS 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.