Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) Stock Has Consensus Target Price of $140.67

Key Points

• Analysts broadly favor Rhythm Pharmaceuticals: Twenty-one analysts give the stock a consensus “Moderate Buy” rating, with 17 buys, three holds, and one sell. The average 12-month price target is $140.67 versus a recent price of $95.71.
• Rhythm reported quarterly EPS of -$0.73, beating the consensus estimate of -$0.81, while revenue reached $71.25 million, up 46.9% year over year and above expectations.
• Company insiders sold 258,450 shares worth approximately $28.8 million over the past three months, including substantial sales by the CFO and another insider under pre-arranged Rule 10b5-1 plans.

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM - Get Free Report) has received a consensus rating of "Moderate Buy" from the twenty-one analysts that are covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, three have given a hold rating and seventeen have assigned a buy rating to the company. The average 1-year price objective among brokers that have covered the stock in the last year is $140.67.

RYTM has been the topic of several recent analyst reports. Deutsche Bank Aktiengesellschaft assumed coverage on Rhythm Pharmaceuticals in a research note on Friday, August 28th. They issued a "hold" rating and a $120.00 price target on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Rhythm Pharmaceuticals in a report on Friday, July 17th. Citizens Jmp upped their target price on shares of Rhythm Pharmaceuticals from $155.00 to $160.00 and gave the company a "market outperform" rating in a research report on Wednesday, August 5th. Wolfe Research assumed coverage on shares of Rhythm Pharmaceuticals in a research note on Thursday, September 17th. They set an "outperform" rating for the company. Finally, Canaccord Genuity Group set a $154.00 price target on shares of Rhythm Pharmaceuticals in a research report on Wednesday, August 5th.

Rhythm Pharmaceuticals Price Performance

Shares of NASDAQ RYTM opened at $95.71 on Wednesday. The company has a market capitalization of $6.56 billion, a P/E ratio of -30.77 and a beta of 1.97. The company has a 50 day simple moving average of $105.97 and a 200-day simple moving average of $97.58. 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 released its quarterly earnings data on Tuesday, August 4th. The company reported ($0.73) EPS for the quarter, beating analysts' consensus estimates of ($0.81) by $0.08. The firm had revenue of $71.25 million for the quarter, compared to analysts' expectations of $67.66 million. Rhythm Pharmaceuticals had a negative return on equity of 159.87% and a negative net margin of 85.59%.The firm's quarterly revenue was up 46.9% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.75) earnings per share. As a group, research analysts expect that Rhythm Pharmaceuticals will post -2.86 EPS for the current year.

Insider Activity

In related news, CFO Hunter 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 transaction of $6,620,146.04. Following the completion of the transaction, the chief financial officer owned 114,024 shares of the company's stock, valued at approximately $12,024,971.04. This trade represents a 35.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, 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 Rhythm Pharmaceuticals stock in a transaction that occurred 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 sale, the insider owned 2,295 shares of the company's stock, valued at $269,823.15. This trade represents a 77.18% 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. Insiders have sold a total of 258,450 shares of company stock worth $28,796,497 in the last three months. 5.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Rhythm Pharmaceuticals

Several institutional investors and hedge funds have recently modified their holdings of the company. EverSource Wealth Advisors LLC raised its stake in shares of Rhythm Pharmaceuticals by 303.0% in the fourth quarter. EverSource Wealth Advisors LLC now owns 266 shares of the company's stock valued at $28,000 after acquiring an additional 200 shares in the last quarter. GAMMA Investing LLC boosted its holdings in Rhythm Pharmaceuticals by 36.3% in the second quarter. GAMMA Investing LLC now owns 364 shares of the company's stock valued at $40,000 after purchasing an additional 97 shares during the period. Global Retirement Partners LLC acquired a new position in Rhythm Pharmaceuticals during the 2nd quarter worth $51,000. State of Wyoming grew its stake in Rhythm Pharmaceuticals by 155.9% during the 4th quarter. State of Wyoming now owns 2,441 shares of the company's stock worth $261,000 after purchasing an additional 1,487 shares in the last quarter. Finally, Centaurus Financial Inc. purchased a new stake in Rhythm Pharmaceuticals during the 2nd quarter worth about $272,000.

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 research is centered on the melanocortin-4 receptor (MC4R) pathway, which plays an important role in regulating hunger and energy balance.

Rhythm's primary product is IMCIVREE (setmelanotide), an MC4R agonist. In the United States, IMCIVREE is approved for chronic weight management in adults and children at least 2 years old with obesity and certain genetically confirmed conditions affecting the MC4R pathway, including pro-opiomelanocortin, proprotein convertase subtilisin/kexin type 1 and leptin receptor deficiencies, as well as Bardet-Biedl syndrome.

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