Rhythm Pharmaceuticals (NASDAQ:RYTM) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Rhythm Pharmaceuticals (NASDAQ:RYTM) released its quarterly earnings results on Tuesday. The company reported ($0.83) earnings per share for the quarter, topping the consensus estimate of ($0.86) by $0.03, Zacks reports. The firm had revenue of $60.11 million for the quarter, compared to analysts’ expectations of $55.78 million. Rhythm Pharmaceuticals had a negative net margin of 103.57% and a negative return on equity of 266.56%. The business’s quarterly revenue was up 83.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.81) earnings per share.

Here are the key takeaways from Rhythm Pharmaceuticals’ conference call:

• IMCIVREE launch for acquired hypothalamic obesity (HO) has started strongly with >150 start forms in six weeks, ~110 unique prescribers (≈80% new to IMCIVREE) and early payer approvals and receptivity.
• Rhythm achieved a major international advance with a faster-than-expected EU marketing authorization for HO and the Japanese NDA accepted, positioning launches/negotiations in Europe and a potential Japan approval by end of 2026.
• Q1 results show momentum with $60.1M net revenue (5% sequential growth), an 8% increase in patients on reimbursed therapy QoQ, and about $341M cash expected to fund operations for at least 24 months.
• Operating costs and losses remain high—Q1 operating expenses were ~$105M (non‑GAAP $82M), GAAP net loss of $0.83/sh, and FY non‑GAAP OpEx guidance of $385–415M—which increases near‑term cash burn and pressure on profitability.

Rhythm Pharmaceuticals Stock Up 7.7%

Shares of Rhythm Pharmaceuticals stock traded up $6.59 during trading on Tuesday, hitting $92.17. 1,165,539 shares of the stock traded hands, compared to its average volume of 778,824. The stock has a market cap of $6.32 billion, a price-to-earnings ratio of -29.64 and a beta of 1.94. The firm’s fifty day moving average is $88.12 and its 200-day moving average is $99.56. Rhythm Pharmaceuticals has a 52 week low of $55.31 and a 52 week high of $122.20.

Analyst Ratings Changes

Several research analysts have recently weighed in on RYTM shares. Canaccord Genuity Group decreased their price target on shares of Rhythm Pharmaceuticals from $141.00 to $140.00 and set a “buy” rating on the stock in a report on Monday, March 2nd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rhythm Pharmaceuticals in a report on Tuesday, April 21st. Jefferies Financial Group reaffirmed a “buy” rating and issued a $125.00 price target on shares of Rhythm Pharmaceuticals in a report on Tuesday, March 3rd. Wells Fargo & Company upped their price target on shares of Rhythm Pharmaceuticals from $136.00 to $143.00 and gave the stock an “overweight” rating in a report on Thursday, March 12th. Finally, Citigroup decreased their price target on shares of Rhythm Pharmaceuticals from $136.00 to $131.00 and set a “buy” rating on the stock in a report on Tuesday, March 17th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $131.13.

Insider Activity

In other news, CAO Christopher Paul German sold 5,614 shares of the stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $89.56, for a total transaction of $502,789.84. Following the transaction, the chief accounting officer directly owned 160 shares in the company, valued at approximately $14,329.60. This represents a 97.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Hunter C. Smith sold 4,385 shares of the stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $101.26, for a total value of $444,025.10. Following the transaction, the chief financial officer owned 110,512 shares in the company, valued at $11,190,445.12. This trade represents a 3.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 27,267 shares of company stock worth $2,719,955 over the last quarter. Corporate insiders own 6.10% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of RYTM. RA Capital Management L.P. grew its stake in shares of Rhythm Pharmaceuticals by 17.3% during the fourth quarter. RA Capital Management L.P. now owns 6,666,837 shares of the company’s stock valued at $713,618,000 after buying an additional 985,478 shares during the last quarter. Alliancebernstein L.P. grew its stake in shares of Rhythm Pharmaceuticals by 1,493.8% during the third quarter. Alliancebernstein L.P. now owns 979,682 shares of the company’s stock valued at $98,938,000 after buying an additional 918,212 shares during the last quarter. Adage Capital Partners GP L.L.C. bought a new position in shares of Rhythm Pharmaceuticals during the second quarter valued at about $21,548,000. Balyasny Asset Management L.P. grew its stake in shares of Rhythm Pharmaceuticals by 547.1% during the third quarter. Balyasny Asset Management L.P. now owns 350,008 shares of the company’s stock valued at $35,347,000 after buying an additional 295,920 shares during the last quarter. Finally, Integral Health Asset Management LLC grew its stake in shares of Rhythm Pharmaceuticals by 115.9% during the fourth quarter. Integral Health Asset Management LLC now owns 475,000 shares of the company’s stock valued at $50,844,000 after buying an additional 255,000 shares during the last quarter.

About Rhythm Pharmaceuticals

Rhythm Pharmaceuticals, Inc is a clinical‐stage biotechnology company dedicated to developing targeted therapies for rare genetic diseases of obesity and metabolic dysfunction. The company’s research focuses on the melanocortin‐4 receptor (MC4R) pathway, which plays a central role in regulating appetite, energy expenditure and body weight. Using proprietary peptide technology, Rhythm aims to provide precision treatments to patients with specific genetic variants that disrupt normal weight regulation.

The company’s lead investigational product, setmelanotide, is a selective MC4R agonist designed to restore signaling in patients with deficiencies in genes such as POMC, LEPR and PCSK1.