Blue Owl Capital Holdings LP Invests $6.82 Million in Rhythm Pharmaceuticals, Inc. $RYTM

Key Points

• Blue Owl Capital Holdings purchased 61,455 Rhythm Pharmaceuticals shares worth approximately $6.82 million, representing about 0.09% of the company and 1% of Blue Owl’s portfolio.
• Several major institutions increased or initiated positions, including RA Capital, Vanguard, BlackRock, State Street and T. Rowe Price. Analysts maintain a broadly positive view, with a consensus “Moderate Buy” rating and an average price target of $142.44.
• Rhythm reported quarterly revenue of $71.25 million, up 46.9% year over year, and an adjusted loss of $0.73 per share that beat estimates. The stock opened at $108.92 after reportedly falling 5.9%, while insiders sold more than $20.7 million of shares over the prior 90 days.

Blue Owl Capital Holdings LP purchased a new stake in shares of Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 61,455 shares of the company's stock, valued at approximately $6,823,000. Rhythm Pharmaceuticals accounts for about 1.0% of Blue Owl Capital Holdings LP's portfolio, making the stock its 19th biggest holding. Blue Owl Capital Holdings LP owned about 0.09% of Rhythm Pharmaceuticals at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in RYTM. RA Capital Management L.P. boosted its stake in shares of Rhythm Pharmaceuticals by 17.3% in the 4th quarter. RA Capital Management L.P. now owns 6,666,837 shares of the company's stock valued at $713,618,000 after purchasing an additional 985,478 shares during the last quarter. Vanguard Group Inc. lifted its holdings in Rhythm Pharmaceuticals by 24.3% in the fourth quarter. Vanguard Group Inc. now owns 6,210,916 shares of the company's stock valued at $664,816,000 after buying an additional 1,214,489 shares during the period. BlackRock Inc. acquired a new position in Rhythm Pharmaceuticals in the second quarter valued at approximately $683,601,000. State Street Corp boosted its stake in Rhythm Pharmaceuticals by 8.4% in the fourth quarter. State Street Corp now owns 2,198,615 shares of the company's stock valued at $235,340,000 after acquiring an additional 169,964 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD boosted its stake in Rhythm Pharmaceuticals by 11.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,560,847 shares of the company's stock valued at $167,074,000 after acquiring an additional 160,950 shares during the last quarter.

Rhythm Pharmaceuticals Stock Down 5.9%

Shares of RYTM opened at $108.92 on Friday. Rhythm Pharmaceuticals, Inc. has a twelve month low of $74.50 and a twelve month high of $122.20. The company has a 50 day moving average of $107.60 and a 200-day moving average of $96.69. The stock has a market capitalization of $7.46 billion, a P/E ratio of -35.02 and a beta of 1.92.

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, topping the consensus estimate of ($0.81) by $0.08. The firm 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 business's quarterly revenue was up 46.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.75) EPS. On average, sell-side analysts anticipate that Rhythm Pharmaceuticals, Inc. will post -2.82 earnings per share for the current fiscal year.

Insider Activity at Rhythm Pharmaceuticals

In other news, Director Lynn A. Tetrault sold 37,000 shares of the company's stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $100.32, for a total value of $3,711,840.00. Following the sale, the director directly owned 7,000 shares of the company's stock, valued at approximately $702,240. This represents a 84.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Joseph Shulman sold 5,079 shares of the firm's stock in a transaction dated 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 owned 15,915 shares of the company's stock, valued at $1,905,821.25. This trade represents a 24.19% 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 182,676 shares of company stock worth $20,754,691 over the last ninety days. Company insiders own 5.90% of the company's stock.

Analysts Set New Price Targets

Several analysts have commented on the stock. Royal Bank Of Canada upped their target price on shares of Rhythm Pharmaceuticals from $141.00 to $155.00 and gave the company an "outperform" rating in a research report on Wednesday, August 5th. TD Cowen restated a "buy" rating on shares of Rhythm Pharmaceuticals in a research report on Wednesday, June 17th. National Bank Financial set a $160.00 price objective on Rhythm Pharmaceuticals in a research note on Wednesday, August 5th. Stifel Nicolaus set a $133.00 price objective on Rhythm Pharmaceuticals in a report on Monday, June 15th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Rhythm Pharmaceuticals in a research note on Friday, July 17th. Fifteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Rhythm Pharmaceuticals presently has a consensus rating of "Moderate Buy" and an average price target of $142.44.

Rhythm Pharmaceuticals Profile

Rhythm Pharmaceuticals, Inc is a clinical‐stage biotechnology company dedicated to developing targeted therapies for rare genetic diseases of obesity and metabolic dysfunction. The company's research focuses on the melanocortin‐4 receptor (MC4R) pathway, which plays a central role in regulating appetite, energy expenditure and body weight. Using proprietary peptide technology, Rhythm aims to provide precision treatments to patients with specific genetic variants that disrupt normal weight regulation.

The company's lead investigational product, setmelanotide, is a selective MC4R agonist designed to restore signaling in patients with deficiencies in genes such as POMC, LEPR and PCSK1.

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