Guggenheim Issues Positive Forecast for Rhythm Pharmaceuticals (NASDAQ:RYTM) Stock Price

Key Points

• Guggenheim raised its price target on Rhythm Pharmaceuticals from $143 to $147 and reiterated its Buy rating, implying 38.63% upside from the stock’s price at the time.
• Analyst sentiment was broadly positive: 18 analysts rated the stock Buy, three Hold and one Sell, with a consensus “Moderate Buy” rating and an average target of $142.17.
• Quarterly results beat expectations: Rhythm reported a smaller loss and higher revenue than analysts forecast, with revenue up 79.6% year over year; shares nevertheless fell $4.64 to $106.04 on Thursday.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) had its price target hoisted by investment analysts at Guggenheim from $143.00 to $147.00 in a research note issued to investors on Thursday, Benzinga reports. The firm presently has a "buy" rating on the stock. Guggenheim's target price points to a potential upside of 38.63% from the stock's current price.

Several other brokerages also recently weighed in on RYTM. National Bank Financial set a $160.00 price target on Rhythm Pharmaceuticals in a report on Wednesday, August 5th. William Blair began coverage on Rhythm Pharmaceuticals in a report on Friday, October 16th. They set an "outperform" rating on the stock. Needham & Company LLC lowered their price objective on Rhythm Pharmaceuticals from $130.00 to $114.00 and set a "buy" rating for the company in a research report on Tuesday. Leerink Partners began coverage on Rhythm Pharmaceuticals in a research report on Monday, September 14th. They issued an "outperform" rating and a $133.00 price objective for the company. Finally, Wolfe Research initiated coverage on Rhythm Pharmaceuticals in a research note on Thursday, September 17th. They issued an "outperform" rating for the company. Eighteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Rhythm Pharmaceuticals has an average rating of "Moderate Buy" and an average target price of $142.17.

Rhythm Pharmaceuticals Stock Performance

RYTM stock traded down $4.64 during trading on Thursday, hitting $106.04. The stock had a trading volume of 2,678,368 shares, compared to its average volume of 812,346. The stock has a market cap of $7.27 billion, a price-to-earnings ratio of -36.56 and a beta of 2.17. The company's 50 day moving average price is $96.29 and its two-hundred day moving average price is $97.18. Rhythm Pharmaceuticals has a 1-year low of $74.50 and a 1-year high of $122.20.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last issued its quarterly 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. Rhythm Pharmaceuticals had a negative net margin of 69.03% and a negative return on equity of 159.32%. The business had revenue of $92.13 million during the quarter, compared to the consensus estimate of $85.56 million. During the same period in the previous year, the firm posted ($0.82) earnings per share. The company's quarterly revenue was up 79.6% compared to the same quarter last year. As a group, sell-side analysts forecast that Rhythm Pharmaceuticals will post -2.77 earnings per share for the current fiscal year.

Insider Activity at Rhythm Pharmaceuticals

In other Rhythm Pharmaceuticals news, CFO Hunter Smith sold 62,774 shares of Rhythm Pharmaceuticals stock in a transaction on Monday, August 31st. The shares were sold at an average price of $105.46, for a total value of $6,620,146.04. Following the transaction, the chief financial officer owned 114,024 shares in the company, valued at $12,024,971.04. This trade represents a 35.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Alastair Garfield sold 7,763 shares of Rhythm Pharmaceuticals stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $117.57, for a total transaction of $912,695.91. Following the completion of the transaction, the insider owned 2,295 shares in the company, valued at approximately $269,823.15. This trade represents a 77.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 over the last 90 days. 5.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

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

More Rhythm Pharmaceuticals News

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

About Rhythm Pharmaceuticals

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.