JPMorgan Chase & Co. Has Lowered Expectations for Rhythm Pharmaceuticals (NASDAQ:RYTM) Stock Price

Key Points

• JPMorgan lowered Rhythm Pharmaceuticals’ price target slightly from $146 to $145 while maintaining an “overweight” rating, implying roughly 63% upside from the prior close.
• Analyst sentiment remains broadly positive: 17 analysts rate the stock a Buy, with an average rating of “Moderate Buy” and a consensus price target of $142.50.
• Rhythm exceeded quarterly expectations, reporting a $0.73 per-share loss versus the anticipated $0.81 loss and revenue of $71.25 million. However, the company remains unprofitable, and insiders sold approximately 258,450 shares worth $28.8 million over the last three months.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) had its price objective cut by equities research analysts at JPMorgan Chase & Co. from $146.00 to $145.00 in a research report issued on Thursday, Benzinga reports. The firm currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price target points to a potential upside of 62.97% from the company's previous close.

A number of other analysts have also weighed in on RYTM. TD Cowen restated a "buy" rating on shares of Rhythm Pharmaceuticals in a research note on Wednesday, June 17th. Canaccord Genuity Group set a $154.00 target price on Rhythm Pharmaceuticals in a research note on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft assumed coverage on Rhythm Pharmaceuticals in a report on Friday, August 28th. They issued a "hold" rating and a $120.00 target price for the company. Wolfe Research started coverage on Rhythm Pharmaceuticals in a research note on Thursday, September 17th. They issued an "outperform" rating for the company. Finally, Citizens Jmp upped their price target on Rhythm Pharmaceuticals from $155.00 to $160.00 and gave the company a "market outperform" rating in a report on Wednesday, August 5th. Seventeen research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $142.50.

Rhythm Pharmaceuticals Stock Performance

Shares of Rhythm Pharmaceuticals stock traded up $2.27 during trading on Thursday, hitting $88.98. The company's stock had a trading volume of 129,617 shares, compared to its average volume of 758,112. Rhythm Pharmaceuticals has a 52 week low of $74.50 and a 52 week high of $122.20. The company has a fifty day simple moving average of $102.83 and a two-hundred day simple moving average of $97.88. The company has a market capitalization of $6.10 billion, a PE ratio of -28.55 and a beta of 2.01.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported ($0.73) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.81) by $0.08. The firm had revenue of $71.25 million during the quarter, compared to analyst estimates of $67.66 million. Rhythm Pharmaceuticals had a negative net margin of 85.59% and a negative return on equity of 159.87%. The business's revenue was up 46.9% on a year-over-year basis. During the same period last year, the business earned ($0.75) earnings per share. As a group, analysts predict that Rhythm Pharmaceuticals will post -2.75 EPS for the current year.

Insiders Place Their Bets

In other Rhythm Pharmaceuticals news, CFO Hunter C. Smith sold 62,774 shares of the stock in a transaction that occurred 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 directly owned 114,024 shares in the company, valued at approximately $12,024,971.04. This trade represents a 35.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 firm's stock in a transaction 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 completion of the transaction, the insider directly owned 2,295 shares in the company, valued at approximately $269,823.15. This represents 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. In the last three months, insiders sold 258,450 shares of company stock valued at $28,796,497. 5.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Rhythm Pharmaceuticals

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. GAMMA Investing LLC boosted its position in shares of Rhythm Pharmaceuticals by 36.3% during the second quarter. GAMMA Investing LLC now owns 364 shares of the company's stock worth $40,000 after acquiring an additional 97 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in Rhythm Pharmaceuticals by 106.4% in the 1st quarter. EverSource Wealth Advisors LLC now owns 549 shares of the company's stock valued at $48,000 after acquiring an additional 283 shares during the last quarter. Global Retirement Partners LLC bought a new stake in Rhythm Pharmaceuticals in the 2nd quarter valued at $51,000. Chicago Partners Investment Group LLC lifted its stake in Rhythm Pharmaceuticals by 14.1% in the 1st quarter. Chicago Partners Investment Group LLC now owns 3,125 shares of the company's stock worth $266,000 after purchasing an additional 386 shares in the last quarter. Finally, Centaurus Financial Inc. purchased a new stake in Rhythm Pharmaceuticals in the 2nd quarter worth $272,000.

Rhythm Pharmaceuticals News Summary

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

• Positive Sentiment: Rhythm launched IMCIVREE (setmelanotide) commercially in Japan for patients with acquired hypothalamic obesity. The launch follows approval from Japan’s Ministry of Health, Labour and Welfare and inclusion on the National Health Insurance drug-price list. IMCIVREE is the first approved treatment in Japan for this condition, creating a potential new source of international revenue. Rhythm Pharmaceuticals Announces Commercial Launch of IMCIVREE in Japan
• Positive Sentiment: Zacks upgraded RYTM to a Rank #2 (Buy), citing improving optimism about the company’s earnings prospects. The upgrade may support near-term investor sentiment. Rhythm Pharmaceuticals Upgraded to Buy
• Neutral Sentiment: HC Wainwright maintained a Buy rating and a $130 price target, well above the recent trading level. The firm raised its FY2026 EPS forecast to a loss of $2.28 from a loss of $2.96 and slightly improved its Q3 and Q4 2026 estimates, indicating expectations for better near-term results.
• Negative Sentiment: HC Wainwright reduced several 2027 forecasts, including FY2027 EPS to a loss of $0.62 from projected earnings of $0.53. Estimates were also lowered for the second and third quarters of 2027 and Q4 2027, signaling that the path to profitability may be slower than previously expected.

About Rhythm Pharmaceuticals

Rhythm Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing medicines for rare genetic diseases of obesity and other disorders involving the melanocortin-4 receptor (MC4R) pathway. The company's research is centered on conditions in which genetic defects disrupt the body's regulation of appetite, hunger and energy expenditure.

Rhythm's lead product is IMCIVREE (setmelanotide), an MC4R agonist designed to restore signaling in the brain's melanocortin pathway.

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.