325,470 Shares in Rhythm Pharmaceuticals, Inc. $RYTM Acquired by Bank of America Corp DE

Key Points

• Bank of America acquired 325,470 shares of Rhythm Pharmaceuticals during the second quarter, valued at approximately $36.1 million and representing about 0.47% of the company.
• Several other institutional investors also established new positions, including Primecap Management with a stake valued at roughly $351.8 million and Jupiter Topco with approximately $102.8 million.
• Rhythm reported stronger-than-expected quarterly results, with revenue up 46.9% year over year to $71.25 million and an adjusted loss of $0.73 per share. Analysts maintain a “Moderate Buy” consensus with an average price target of $140.67, though company insiders sold approximately $28.8 million in shares over the past 90 days.

Bank of America Corp DE bought a new position in shares of Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 325,470 shares of the company's stock, valued at approximately $36,137,000. Bank of America Corp DE owned approximately 0.47% of Rhythm Pharmaceuticals as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Man Group plc acquired a new stake in shares of Rhythm Pharmaceuticals in the second quarter valued at $5,639,000. Jupiter Topco LLC acquired a new position in Rhythm Pharmaceuticals during the 2nd quarter worth $102,752,000. ADAR1 Capital Management LLC purchased a new stake in Rhythm Pharmaceuticals during the 2nd quarter worth about $15,118,000. EFG International AG purchased a new stake in Rhythm Pharmaceuticals during the 2nd quarter worth about $3,728,000. Finally, Primecap Management Co. CA purchased a new stake in Rhythm Pharmaceuticals during the 2nd quarter worth about $351,838,000.

Rhythm Pharmaceuticals Stock Up 1.1%

NASDAQ RYTM opened at $98.83 on Tuesday. The stock has a market capitalization of $6.77 billion, a P/E ratio of -31.78 and a beta of 1.97. Rhythm Pharmaceuticals, Inc. has a 52-week low of $74.50 and a 52-week high of $122.20. The firm has a 50-day moving average price of $107.07 and a 200 day moving average price of $97.32.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last announced its quarterly earnings data 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. The company had revenue of $71.25 million for the quarter, compared to analyst estimates 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 revenue for the quarter was up 46.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.75) EPS. On average, equities research analysts expect that Rhythm Pharmaceuticals, Inc. will post -2.86 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

RYTM has been the topic of a number of analyst reports. Weiss Ratings restated a "sell (d-)" rating on shares of Rhythm Pharmaceuticals in a report on Friday, July 17th. Stifel Nicolaus set a $133.00 price objective on Rhythm Pharmaceuticals in a report on Monday, June 15th. Deutsche Bank Aktiengesellschaft began coverage on shares of Rhythm Pharmaceuticals in a research report on Friday, August 28th. They issued a "hold" rating and a $120.00 price target for the company. Wolfe Research started coverage on shares of Rhythm Pharmaceuticals in a research report on Thursday, September 17th. They set an "outperform" rating on the stock. Finally, TD Cowen reaffirmed a "buy" rating on shares of Rhythm Pharmaceuticals in a report on Wednesday, June 17th. Seventeen 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.com, Rhythm Pharmaceuticals has an average rating of "Moderate Buy" and an average target price of $140.67.

Insider Activity at Rhythm Pharmaceuticals

In other news, CEO David Meeker sold 50,000 shares of the company's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $102.67, for a total transaction of $5,133,500.00. Following the transaction, the chief executive officer directly owned 239,258 shares of the company's stock, valued at $24,564,618.86. This represents a 17.29% decrease in their position. The transaction was disclosed in a document filed with the SEC, 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 the company's stock in a transaction dated 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 owned 54,233 shares in the company, 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. In the last ninety days, insiders sold 258,450 shares of company stock worth $28,796,497. 5.90% of the stock is currently owned by insiders.

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 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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