HC Wainwright Has Positive Outlook for RYTM Q3 Earnings

Key Points

• HC Wainwright raised its Q3 2026 EPS estimate for Rhythm Pharmaceuticals to a loss of $0.68 from $0.71, while maintaining a Buy rating and $130 price target. The firm also improved its FY2026 loss forecast to $2.28 per share.
• Analyst sentiment remains broadly positive, with 17 Buy ratings, three Holds and one Sell, producing a consensus “Moderate Buy” rating and an average price target of $142.56.
• Rhythm reported stronger-than-expected latest-quarter results, including a $0.73 per-share loss versus the $0.81 consensus and $71.25 million in revenue, up 46.9% year over year. However, insiders sold $28.8 million of shares over the past 90 days, while HC Wainwright reduced its FY2027 forecast to a $0.62 loss.

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM - Free Report) - Equities research analysts at HC Wainwright lifted their Q3 2026 earnings estimates for shares of Rhythm Pharmaceuticals in a report released on Monday, October 12th. HC Wainwright analyst R. Selvaraju now anticipates that the company will post earnings per share of ($0.68) for the quarter, up from their prior estimate of ($0.71). HC Wainwright currently has a "Buy" rating and a $130.00 target price on the stock. The consensus estimate for Rhythm Pharmaceuticals' current full-year earnings is ($2.85) per share. HC Wainwright also issued estimates for Rhythm Pharmaceuticals' Q4 2026 earnings at ($0.57) EPS, FY2026 earnings at ($2.28) EPS, Q1 2027 earnings at ($0.45) EPS, Q2 2027 earnings at ($0.27) EPS, Q3 2027 earnings at ($0.03) EPS, Q4 2027 earnings at $0.14 EPS and FY2027 earnings at ($0.62) EPS.

Several other research analysts also recently issued reports on RYTM. Royal Bank Of Canada upped their price target on shares of Rhythm Pharmaceuticals from $155.00 to $159.00 and gave the stock an "outperform" rating in a report on Thursday, October 8th. TD Cowen reiterated a "buy" rating on shares of Rhythm Pharmaceuticals in a research note on Wednesday, June 17th. Citizens Jmp raised their price objective on Rhythm Pharmaceuticals from $155.00 to $160.00 and gave the company a "market outperform" rating in a report on Wednesday, August 5th. JPMorgan Chase & Co. raised their price objective on Rhythm Pharmaceuticals from $145.00 to $146.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Finally, Leerink Partners started coverage on Rhythm Pharmaceuticals in a research report on Monday, September 14th. They set an "outperform" rating and a $133.00 price objective on the stock. Seventeen analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $142.56.

Rhythm Pharmaceuticals Stock Performance

Shares of Rhythm Pharmaceuticals stock opened at $86.61 on Wednesday. Rhythm Pharmaceuticals has a fifty-two week low of $74.50 and a fifty-two week high of $122.20. The company's 50 day moving average price is $103.31 and its two-hundred day moving average price is $97.84.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported ($0.73) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.81) by $0.08. The business had revenue of $71.25 million during the quarter, compared to analysts' expectations of $67.66 million. Rhythm Pharmaceuticals had a negative net margin of 85.59% and a negative return on equity of 159.87%. The firm's quarterly revenue was up 46.9% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.75) EPS.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of RYTM. GAMMA Investing LLC grew its holdings in Rhythm Pharmaceuticals by 36.3% in the second quarter. GAMMA Investing LLC now owns 364 shares of the company's stock worth $40,000 after purchasing an additional 97 shares during the period. EverSource Wealth Advisors LLC increased its stake in Rhythm Pharmaceuticals by 106.4% in the first quarter. EverSource Wealth Advisors LLC now owns 549 shares of the company's stock valued at $48,000 after purchasing an additional 283 shares in the last quarter. Global Retirement Partners LLC bought a new stake in Rhythm Pharmaceuticals in the second quarter valued at $51,000. Chicago Partners Investment Group LLC increased its stake in Rhythm Pharmaceuticals by 14.1% in the first quarter. Chicago Partners Investment Group LLC now owns 3,125 shares of the company's stock valued at $266,000 after purchasing an additional 386 shares in the last quarter. Finally, Centaurus Financial Inc. acquired a new position in shares of Rhythm Pharmaceuticals during the second quarter valued at about $272,000.

Insider Buying and Selling

In related news, CFO Hunter C. Smith sold 62,774 shares of the company's stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $105.46, for a total value of $6,620,146.04. Following the sale, the chief financial officer directly owned 114,024 shares in the company, valued at $12,024,971.04. This represents a 35.51% 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 Yann Mazabraud sold 57,000 shares of the stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $116.15, for a total transaction of $6,620,550.00. Following the sale, the executive vice president directly owned 55,655 shares of the company's stock, valued at $6,464,328.25. This represents a 50.60% decrease in their position. The SEC filing for this sale provides additional information. 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 corporate insiders.

Key Headlines Impacting Rhythm Pharmaceuticals

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

• Positive Sentiment: Rhythm announced the commercial launch of IMCIVREE (setmelanotide) in Japan for acquired hypothalamic obesity. The treatment is the first approved therapy in Japan for this condition and is covered under the country’s National Health Insurance drug-price system, creating a new commercial opportunity. Rhythm Pharmaceuticals Announces Commercial Launch of IMCIVREE in Japan
• Positive Sentiment: Zacks upgraded RYTM to a Rank #2, or Buy, citing improving optimism around the company’s earnings prospects. Such a rating change may support near-term investor interest. Rhythm Pharmaceuticals Upgraded to Buy
• Neutral Sentiment: Recent commentary highlights investor focus on Rhythm’s progress in Prader-Willi syndrome and genetically defined obesity therapies, but provides limited new operating or financial information. Investors May Respond to Rhythm Pharmaceuticals Progress
• Negative Sentiment: HC Wainwright cut its FY2027 EPS forecast to a loss of $0.62 from a projected profit of $0.53. It also lowered estimates for the second and third quarters of 2027 and Q4 2027, signaling slower expected improvement in profitability.
• Positive Sentiment: HC Wainwright raised its FY2026 EPS forecast to a loss of $2.28 from $2.96 and modestly improved its Q3 and Q4 2026 estimates. The analyst nevertheless retained a Buy rating and $130 target, implying substantial upside from the recently reported trading level.

Rhythm Pharmaceuticals Company Profile

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.

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