Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) Stock Has Consensus Target Price of $142.50 According to Brokerages

Key Points

• Analysts maintain a Moderate Buy consensus on Rhythm Pharmaceuticals, with 18 buys, three holds and one sell among 22 firms. The average 12-month price target is $142.50, well above the reported $89.27 share price.
• Rhythm reported quarterly revenue of $71.25 million, up 46.9% year over year and ahead of estimates, while adjusted earnings of $(0.73) per share beat expectations. Analysts anticipate a full-year loss of approximately $2.77 per share.
• Insiders sold 258,450 shares worth roughly $28.8 million over the past three months, including significant sales by two executives under pre-arranged Rule 10b5-1 plans. The company’s lead product is IMCIVREE, an approved treatment for certain rare genetic obesity disorders.

Shares of Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM - Get Free Report) have earned an average recommendation of "Moderate Buy" from the twenty-two ratings firms that are covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, three have given a hold recommendation and eighteen have given a buy recommendation to the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $142.50.

RYTM has been the topic of several research reports. Royal Bank Of Canada upped their price objective on shares of Rhythm Pharmaceuticals from $155.00 to $159.00 and gave the company an "outperform" rating in a report on Thursday, October 8th. HC Wainwright increased their price objective on shares of Rhythm Pharmaceuticals from $105.00 to $130.00 and gave the company a "buy" rating in a research report on Monday, October 12th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Rhythm Pharmaceuticals in a research note on Friday, August 28th. They set a "hold" rating and a $120.00 target price for the company. Citizens Jmp lifted their target price on shares of Rhythm Pharmaceuticals from $155.00 to $160.00 and gave the stock a "market outperform" rating in a report on Wednesday, August 5th. Finally, National Bank Financial set a $160.00 price target on shares of Rhythm Pharmaceuticals in a research note on Wednesday, August 5th.

Rhythm Pharmaceuticals Trading Down 1.8%

RYTM stock opened at $89.27 on Friday. The firm has a market capitalization of $6.12 billion, a PE ratio of -28.70 and a beta of 2.01. 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 $99.15 and its 200 day simple moving average is $98.04.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported ($0.73) earnings per share for the quarter, beating analysts' consensus estimates of ($0.81) by $0.08. Rhythm Pharmaceuticals had a negative return on equity of 159.87% and a negative net margin of 85.59%. The business had revenue of $71.25 million for the quarter, compared to analysts' expectations of $67.66 million. During the same quarter in the prior year, the business earned ($0.75) EPS. The firm's revenue for the quarter was up 46.9% on a year-over-year basis. As a group, sell-side analysts predict that Rhythm Pharmaceuticals will post -2.77 EPS for the current fiscal year.

Insider Activity

In other Rhythm Pharmaceuticals news, insider Joseph Shulman sold 5,079 shares of the firm's stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $119.75, for a total transaction 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 legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jennifer Lee sold 75,834 shares of the business's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $117.38, for a total value of $8,901,394.92. Following the sale, the executive vice president owned 54,233 shares of the company's stock, valued at approximately $6,365,869.54. This represents a 58.30% 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. Over the last three months, insiders sold 258,450 shares of company stock valued at $28,796,497. Company insiders own 5.90% of the company's stock.

Institutional Trading of Rhythm Pharmaceuticals

Several hedge funds have recently added to or reduced their stakes in RYTM. GAMMA Investing LLC boosted its stake in Rhythm Pharmaceuticals by 36.3% in the 2nd 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. EverSource Wealth Advisors LLC increased its position in Rhythm Pharmaceuticals by 106.4% during the 1st quarter. EverSource Wealth Advisors LLC now owns 549 shares of the company's stock worth $48,000 after buying an additional 283 shares during the period. Global Retirement Partners LLC bought a new position in Rhythm Pharmaceuticals during the 2nd quarter worth $51,000. Nisa Investment Advisors LLC increased its position in Rhythm Pharmaceuticals by 9.1% during the 3rd quarter. Nisa Investment Advisors LLC now owns 1,630 shares of the company's stock worth $155,000 after buying an additional 136 shares during the period. Finally, Sterling Capital Management LLC increased its position in Rhythm Pharmaceuticals by 884.0% during the 3rd quarter. Sterling Capital Management LLC now owns 1,909 shares of the company's stock worth $182,000 after buying an additional 1,715 shares during the period.

Rhythm Pharmaceuticals Company Profile

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.

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