Driehaus Capital Management LLC Boosts Stake in Rhythm Pharmaceuticals, Inc. $RYTM

Key Points

• Driehaus Capital Management LLC has increased its stake in Rhythm Pharmaceuticals by 12.9%, holding 1,458,022 shares valued at approximately $77 million.
• Despite a revenue increase of 66.8% year-over-year, Rhythm Pharmaceuticals reported a loss of ($0.75) earnings per share, missing analyst estimates.
• Wall Street analysts have raised price targets for Rhythm Pharmaceuticals, with JMP Securities setting a target of $135, indicating optimism about the company's future performance.

Driehaus Capital Management LLC lifted its holdings in shares of Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM - Free Report) by 12.9% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,458,022 shares of the company's stock after purchasing an additional 167,047 shares during the period. Driehaus Capital Management LLC owned 2.29% of Rhythm Pharmaceuticals worth $77,231,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in the business. Siren L.L.C. bought a new position in Rhythm Pharmaceuticals in the first quarter worth approximately $14,701,000. Trexquant Investment LP lifted its holdings in shares of Rhythm Pharmaceuticals by 396.6% in the first quarter. Trexquant Investment LP now owns 38,724 shares of the company's stock valued at $2,051,000 after purchasing an additional 30,926 shares in the last quarter. Rafferty Asset Management LLC lifted its holdings in shares of Rhythm Pharmaceuticals by 14.6% in the first quarter. Rafferty Asset Management LLC now owns 57,732 shares of the company's stock valued at $3,058,000 after purchasing an additional 7,338 shares in the last quarter. Comerica Bank lifted its holdings in shares of Rhythm Pharmaceuticals by 1,330.2% in the first quarter. Comerica Bank now owns 244,754 shares of the company's stock valued at $12,965,000 after purchasing an additional 227,641 shares in the last quarter. Finally, Jump Financial LLC bought a new position in shares of Rhythm Pharmaceuticals in the first quarter valued at approximately $2,212,000.

Analyst Ratings Changes

A number of research firms have recently weighed in on RYTM. HC Wainwright raised their target price on Rhythm Pharmaceuticals from $80.00 to $100.00 and gave the company a "buy" rating in a report on Thursday, August 7th. Leerink Partners began coverage on Rhythm Pharmaceuticals in a research report on Monday, July 7th. They set an "outperform" rating and a $88.00 price target for the company. Canaccord Genuity Group increased their price target on Rhythm Pharmaceuticals from $92.00 to $105.00 and gave the company a "buy" rating in a research report on Friday, July 18th. Morgan Stanley reaffirmed an "overweight" rating and set a $109.00 price target (up from $100.00) on shares of Rhythm Pharmaceuticals in a research report on Tuesday, August 5th. Finally, Wall Street Zen raised Rhythm Pharmaceuticals from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. One research analyst has rated the stock with a Strong Buy rating and fourteen have given a Buy rating to the company. According to MarketBeat.com, Rhythm Pharmaceuticals currently has a consensus rating of "Buy" and an average price target of $101.57.

Rhythm Pharmaceuticals Stock Down 1.1%

NASDAQ:RYTM traded down $1.13 during trading hours on Wednesday, hitting $103.09. 270,802 shares of the company's stock traded hands, compared to its average volume of 659,019. The firm has a market cap of $6.85 billion, a P/E ratio of -34.20 and a beta of 2.23. Rhythm Pharmaceuticals, Inc. has a 52 week low of $45.00 and a 52 week high of $106.52. The business's fifty day simple moving average is $87.59 and its two-hundred day simple moving average is $68.63.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported ($0.75) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.66) by ($0.09). Rhythm Pharmaceuticals had a negative net margin of 117.13% and a negative return on equity of 1,831.43%. The business had revenue of $48.50 million for the quarter, compared to the consensus estimate of $43.72 million. During the same period in the prior year, the business posted ($0.55) EPS. Rhythm Pharmaceuticals's quarterly revenue was up 66.8% on a year-over-year basis. On average, analysts expect that Rhythm Pharmaceuticals, Inc. will post -4.32 EPS for the current year.

Insider Transactions at Rhythm Pharmaceuticals

In other news, insider Joseph Shulman sold 7,969 shares of the business's stock in a transaction that occurred on Wednesday, July 9th. The stock was sold at an average price of $77.78, for a total value of $619,828.82. Following the sale, the insider directly owned 8,509 shares of the company's stock, valued at $661,830.02. The trade was a 48.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Hunter C. Smith sold 42,120 shares of the business's stock in a transaction that occurred on Wednesday, July 9th. The stock was sold at an average price of $80.48, for a total value of $3,389,817.60. Following the completion of the sale, the chief financial officer directly owned 116,915 shares in the company, valued at approximately $9,409,319.20. This represents a 26.48% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 119,177 shares of company stock worth $9,977,553 over the last quarter. Insiders own 6.10% of the company's stock.

About Rhythm Pharmaceuticals

Rhythm Pharmaceuticals, Inc, a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases. The company's lead product candidate is IMCIVREE (setmelanotide), a rare melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, and Bardet-Biedl and Alström syndrome.