Hsbc Holdings PLC Invests $1.23 Million in Rhythm Pharmaceuticals, Inc. $RYTM

Key Points

• HSBC Holdings purchased a new $1.23 million stake in Rhythm Pharmaceuticals, buying 14,307 shares during the first quarter. Several other institutional investors also increased their positions.
• Analyst sentiment is largely positive: 15 analysts rate the stock Buy, two rate it Hold and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $138.73.
• Rhythm reported quarterly revenue of $60.11 million, up 83.8% year over year, and an adjusted loss of $0.83 per share that beat estimates. However, the company remains unprofitable, with a negative net margin of 93.33%.

Hsbc Holdings PLC purchased a new stake in shares of Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 14,307 shares of the company's stock, valued at approximately $1,225,000.

Other institutional investors and hedge funds have also recently made changes to their positions in the company. EverSource Wealth Advisors LLC grew its holdings in Rhythm Pharmaceuticals by 303.0% during the 4th quarter. EverSource Wealth Advisors LLC now owns 266 shares of the company's stock worth $28,000 after acquiring an additional 200 shares in the last quarter. SBI Securities Co. Ltd. increased its position in Rhythm Pharmaceuticals by 73.2% during the 4th quarter. SBI Securities Co. Ltd. now owns 343 shares of the company's stock valued at $37,000 after purchasing an additional 145 shares during the period. GAMMA Investing LLC raised its holdings in shares of Rhythm Pharmaceuticals by 48.6% in the 4th quarter. GAMMA Investing LLC now owns 361 shares of the company's stock valued at $39,000 after purchasing an additional 118 shares in the last quarter. Smartleaf Asset Management LLC raised its holdings in shares of Rhythm Pharmaceuticals by 39.5% in the 4th quarter. Smartleaf Asset Management LLC now owns 399 shares of the company's stock valued at $43,000 after purchasing an additional 113 shares in the last quarter. Finally, Covestor Ltd lifted its position in shares of Rhythm Pharmaceuticals by 328.9% in the 4th quarter. Covestor Ltd now owns 579 shares of the company's stock worth $62,000 after purchasing an additional 444 shares during the period.

Insider Activity

In other news, Director Lynn A. Tetrault sold 37,000 shares of the company's stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $100.32, for a total transaction of $3,711,840.00. Following the transaction, 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 ownership of the stock. The sale 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. Insiders own 5.90% of the company's stock.

Wall Street Analysts Forecast Growth

RYTM has been the topic of a number of recent research reports. Citigroup reiterated a "market outperform" rating on shares of Rhythm Pharmaceuticals in a research note on Wednesday, June 3rd. Canaccord Genuity Group upped their target price on Rhythm Pharmaceuticals from $143.00 to $151.00 and gave the stock a "buy" rating in a report on Tuesday, June 16th. Wells Fargo & Company increased their target price on Rhythm Pharmaceuticals from $144.00 to $155.00 and gave the company an "overweight" rating in a research report on Monday, June 15th. JPMorgan Chase & Co. assumed coverage on Rhythm Pharmaceuticals in a report on Monday. They issued an "overweight" rating and a $145.00 price target on the stock. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Rhythm Pharmaceuticals in a report 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 stock. According to data from MarketBeat, Rhythm Pharmaceuticals presently has an average rating of "Moderate Buy" and an average target price of $138.73.

Rhythm Pharmaceuticals Stock Performance

NASDAQ:RYTM opened at $106.13 on Tuesday. The company's 50-day simple moving average is $99.30 and its 200-day simple moving average is $95.80. Rhythm Pharmaceuticals, Inc. has a fifty-two week low of $74.50 and a fifty-two week high of $122.20. The stock has a market capitalization of $7.27 billion, a P/E ratio of -33.91 and a beta of 1.88.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported ($0.83) EPS for the quarter, topping the consensus estimate of ($0.86) by $0.03. Rhythm Pharmaceuticals had a negative net margin of 93.33% and a negative return on equity of 203.25%. The firm had revenue of $60.11 million during the quarter, compared to analyst estimates of $55.78 million. Rhythm Pharmaceuticals's revenue was up 83.8% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.81) EPS. On average, research analysts forecast that Rhythm Pharmaceuticals, Inc. will post -3.1 EPS for the current year.

Rhythm Pharmaceuticals Company 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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