Rhythm Pharmaceuticals (NASDAQ:RYTM) Given New $142.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan cut its price target on Rhythm Pharmaceuticals from $145 to $142 but maintained an “overweight” rating, implying 26.47% upside from the current share price.
• Rhythm reported quarterly revenue of $92.13 million, up 79.6% year over year, and a loss per share of $0.61—narrower than analysts’ expected $0.71 loss.
• Insiders sold 258,450 shares worth about $28.8 million over the past 90 days; the disclosed sales were made under pre-arranged trading plans.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) had its price target reduced by JPMorgan Chase & Co. from $145.00 to $142.00 in a research note issued on Friday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s target price would indicate a potential upside of 26.47% from the stock's current price.

Several other equities analysts have also commented on RYTM. National Bank Financial set a $160.00 price objective on shares of Rhythm Pharmaceuticals in a research report on Wednesday, August 5th. Needham & Company LLC reduced their target price on shares of Rhythm Pharmaceuticals from $130.00 to $114.00 and set a "buy" rating on the stock in a report on Tuesday, November 3rd. Leerink Partners assumed coverage on shares of Rhythm Pharmaceuticals in a research report on Monday, September 14th. They set an "outperform" rating and a $133.00 target price on the stock. Guggenheim increased their price target on shares of Rhythm Pharmaceuticals from $143.00 to $147.00 and gave the company a "buy" rating in a report on Thursday. Finally, Oppenheimer reiterated a "market perform" rating on shares of Rhythm Pharmaceuticals in a research report on Wednesday. Eighteen analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $142.00.

Rhythm Pharmaceuticals Price Performance

Shares of RYTM opened at $112.28 on Friday. The stock has a market capitalization of $7.78 billion, a price-to-earnings ratio of -38.72 and a beta of 2.17. Rhythm Pharmaceuticals has a 1 year low of $74.50 and a 1 year high of $122.20. The business's 50 day simple moving average is $96.15 and its 200-day simple moving average is $97.25.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last posted its earnings results on Tuesday, November 3rd. The company reported ($0.61) EPS for the quarter, beating analysts' consensus estimates of ($0.71) by $0.10. Rhythm Pharmaceuticals had a negative return on equity of 171.16% and a negative net margin of 69.03%. The firm had revenue of $92.13 million during the quarter, compared to the consensus estimate of $85.56 million. During the same period in the prior year, the company earned ($0.82) EPS. The company's quarterly revenue was up 79.6% compared to the same quarter last year. On average, sell-side analysts expect that Rhythm Pharmaceuticals will post -4.24 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Joseph Shulman sold 5,079 shares of the firm's stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $119.75, for a total value of $608,210.25. Following the completion of the sale, the insider directly owned 15,915 shares in the company, valued at $1,905,821.25. This trade represents a 24.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jennifer Lee sold 75,834 shares of Rhythm Pharmaceuticals stock in a transaction on 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 transaction, the executive vice president directly owned 54,233 shares of the company's stock, valued at $6,365,869.54. The trade was a 58.30% decrease in their ownership of the stock. 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 sold 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 Investors Weigh In On Rhythm Pharmaceuticals

Several institutional investors have recently made changes to their positions in RYTM. BlackRock Inc. bought a new stake in shares of Rhythm Pharmaceuticals during the second quarter worth $683,601,000. Primecap Management Co. CA purchased a new stake in shares of Rhythm Pharmaceuticals during the second quarter valued at $351,838,000. Jupiter Topco LLC bought a new position in shares of Rhythm Pharmaceuticals in the second quarter worth about $102,752,000. Pictet Asset Management Holding SA grew its holdings in shares of Rhythm Pharmaceuticals by 2.0% in the third quarter. Pictet Asset Management Holding SA now owns 976,487 shares of the company's stock worth $93,019,000 after purchasing an additional 18,702 shares during the last quarter. Finally, Siren L.L.C. grew its holdings in shares of Rhythm Pharmaceuticals by 45.1% in the first quarter. Siren L.L.C. now owns 725,511 shares of the company's stock worth $63,098,000 after purchasing an additional 225,536 shares during the last quarter.

About Rhythm Pharmaceuticals

Rhythm Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing treatments for rare genetic diseases of obesity. The company is headquartered in Boston, Massachusetts, and its work centers on the melanocortin-4 receptor pathway, which helps regulate hunger and energy balance.

Its commercial product, IMCIVREE (setmelanotide), is approved in the United States and Europe for certain forms of genetically defined obesity, including obesity associated with Bardet-Biedl syndrome and specific gene deficiencies.

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