Rhythm Pharmaceuticals (NASDAQ:RYTM) Stock Gets Price Target Trim from Needham & Company LLC

Rhythm Pharmaceuticals (NASDAQ:RYTM) had its target price lowered by Needham & Company LLC from $130.00 to $114.00 in a research report released on Tuesday morning,Benzinga reports. The firm currently has a buy rating on the stock.

Several other equities research analysts have also recently weighed in on the company. Leerink Partners assumed coverage on Rhythm Pharmaceuticals in a report on Monday, September 14th. They set an “outperform” rating and a $133.00 target price for the company. Royal Bank Of Canada raised their price target on Rhythm Pharmaceuticals from $155.00 to $159.00 and gave the stock an “outperform” rating in a research report on Thursday, October 8th. Canaccord Genuity Group set a $154.00 price target on Rhythm Pharmaceuticals in a research note on Wednesday, August 5th. Wolfe Research assumed coverage on Rhythm Pharmaceuticals in a research report on Thursday, September 17th. They issued an “outperform” rating for the company. Finally, Citigroup reissued a “market outperform” rating on shares of Rhythm Pharmaceuticals in a report on Wednesday, August 5th. 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 company’s stock. According to data from MarketBeat.com, Rhythm Pharmaceuticals has an average rating of “Moderate Buy” and a consensus target price of $142.17.

Rhythm Pharmaceuticals Trading Down 5.1%

Shares of NASDAQ RYTM opened at $105.02 on Tuesday. Rhythm Pharmaceuticals has a one year low of $74.50 and a one year high of $122.20. The firm’s 50 day simple moving average is $96.16 and its two-hundred day simple moving average is $97.20.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last issued its earnings results on Tuesday, November 3rd. The company reported ($0.61) EPS for the quarter, topping analysts’ consensus estimates of ($0.71) by $0.10. The company had revenue of $92.13 million for 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 171.16%. The firm’s revenue was up 79.6% compared to the same quarter last year. During the same quarter last year, the company earned ($0.82) EPS. On average, equities analysts anticipate that Rhythm Pharmaceuticals will post -3.57 EPS for the current fiscal year.

Insider Transactions at Rhythm Pharmaceuticals

In related news, CFO Hunter C. Smith sold 62,774 shares of Rhythm Pharmaceuticals stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $105.46, for a total transaction of $6,620,146.04. Following the completion of the transaction, the chief financial officer directly owned 114,024 shares of the company’s stock, valued at $12,024,971.04. This trade represents a 35.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jennifer Lee sold 75,834 shares of the business’s stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $117.38, for a total transaction of $8,901,394.92. Following the sale, the executive vice president directly owned 54,233 shares in the company, valued at $6,365,869.54. The trade was a 58.30% 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. Over the last ninety days, insiders sold 258,450 shares of company stock worth $28,796,497. 5.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Rhythm Pharmaceuticals

Several large investors have recently made changes to their positions in the business. Orbimed Advisors LLC increased its stake in Rhythm Pharmaceuticals by 31.0% during the 1st quarter. Orbimed Advisors LLC now owns 314,100 shares of the company’s stock valued at $27,317,000 after purchasing an additional 74,300 shares in the last quarter. Squarepoint Ops LLC raised its holdings in Rhythm Pharmaceuticals by 60.8% in the second quarter. Squarepoint Ops LLC now owns 422,921 shares of the company’s stock worth $46,957,000 after buying an additional 159,953 shares during the last quarter. Nan Fung Group Holdings Ltd bought a new position in shares of Rhythm Pharmaceuticals in the second quarter worth approximately $5,453,794. Blue Owl Capital Holdings LP bought a new position in shares of Rhythm Pharmaceuticals in the second quarter worth approximately $6,823,000. Finally, Braidwell LP lifted its stake in shares of Rhythm Pharmaceuticals by 22.7% in the second quarter. Braidwell LP now owns 381,128 shares of the company’s stock worth $42,317,000 after buying an additional 70,500 shares in the last quarter.

Rhythm Pharmaceuticals News Roundup

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

• Positive Sentiment: Reported $10 billion AstraZeneca offer: The Wall Street Journal and Reuters reported that AstraZeneca made an offer to acquire Rhythm, potentially valuing it well above the company’s recent market capitalization. A deal could provide a substantial takeover premium, though neither a completed transaction nor agreed terms were confirmed. Reuters article
• Positive Sentiment: More favorable access for IMCIVREE: The UK’s NICE updated its positive guidance to include adults with genetically confirmed Bardet-Biedl syndrome, potentially broadening access to the treatment and supporting future sales. Company announcement
• Positive Sentiment: Analyst optimism: Guggenheim raised its price target to $147 and maintained a Buy rating; Citizens JMP raised its target to $166 and maintained Market Outperform. RBC also estimated that worldwide IMCIVREE sales could reach $2 billion by 2030. RBC sales estimate
• Positive Sentiment: Strong quarterly results: Rhythm’s latest reported quarter exceeded analyst expectations for revenue and earnings per share, with revenue up 79.6% year over year, reinforcing the company’s commercial growth story.
• Negative Sentiment: Takeover uncertainty may temper the rally: The reported AstraZeneca bid has not been confirmed as an agreement. After the news drove a large move, uncertainty over whether a transaction will proceed could contribute to volatility or a pullback.

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.