Vanguard Group Inc. Purchases 1,214,489 Shares of Rhythm Pharmaceuticals, Inc. $RYTM

Key Points

• Vanguard Group increased its stake in Rhythm Pharmaceuticals by 24.3%, buying 1,214,489 shares to own 6,210,916 shares (about 9.31% of the company) valued at roughly $664.8 million.
• Rhythm posted a quarterly beat with EPS of ($0.73) vs. ($0.79) expected and revenue of $57.25 million (up 36.9% year-over-year), but remains unprofitable with a negative net margin and return on equity.
• Analysts hold an overall view of a "Moderate Buy" with a consensus price target of $131.13, while company insiders have been net sellers, offloading 27,267 shares (~$2.72 million) over the past three months.

Vanguard Group Inc. boosted its position in shares of Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM - Free Report) by 24.3% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 6,210,916 shares of the company's stock after buying an additional 1,214,489 shares during the quarter. Vanguard Group Inc. owned approximately 9.31% of Rhythm Pharmaceuticals worth $664,816,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also added to or reduced their stakes in the company. Smartleaf Asset Management LLC raised its holdings in Rhythm Pharmaceuticals by 97.2% in the 3rd quarter. Smartleaf Asset Management LLC now owns 286 shares of the company's stock worth $29,000 after purchasing an additional 141 shares in the last quarter. Farther Finance Advisors LLC grew its position in shares of Rhythm Pharmaceuticals by 1,110.3% in the 3rd quarter. Farther Finance Advisors LLC now owns 351 shares of the company's stock worth $35,000 after buying an additional 322 shares during the period. GAMMA Investing LLC grew its position in Rhythm Pharmaceuticals by 48.6% during 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 during the last quarter. Optiver Holding B.V. grew its position in Rhythm Pharmaceuticals by 65.2% during the 3rd quarter. Optiver Holding B.V. now owns 365 shares of the company's stock valued at $37,000 after purchasing an additional 144 shares during the last quarter. Finally, Osaic Holdings Inc. grew its position in Rhythm Pharmaceuticals by 65.9% during the 2nd quarter. Osaic Holdings Inc. now owns 979 shares of the company's stock valued at $62,000 after purchasing an additional 389 shares during the last quarter.

Analyst Ratings Changes

A number of analysts have recently issued reports on RYTM shares. Canaccord Genuity Group dropped their price target on shares of Rhythm Pharmaceuticals from $141.00 to $140.00 and set a "buy" rating on the stock in a report on Monday, March 2nd. Weiss Ratings reissued a "sell (d-)" rating on shares of Rhythm Pharmaceuticals in a report on Tuesday, April 21st. Morgan Stanley decreased their target price on shares of Rhythm Pharmaceuticals from $150.00 to $136.00 and set an "overweight" rating on the stock in a research note on Tuesday, March 17th. Wall Street Zen cut shares of Rhythm Pharmaceuticals from a "hold" rating to a "sell" rating in a research note on Sunday, April 19th. Finally, Bank of America reduced their price objective on shares of Rhythm Pharmaceuticals from $145.00 to $139.00 and set a "buy" rating on the stock in a research report on Tuesday, March 17th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $131.13.

Rhythm Pharmaceuticals Price Performance

NASDAQ RYTM opened at $81.81 on Monday. The company has a fifty day moving average of $88.12 and a two-hundred day moving average of $99.56. The firm has a market capitalization of $5.61 billion, a price-to-earnings ratio of -26.31 and a beta of 1.94. Rhythm Pharmaceuticals, Inc. has a 52 week low of $55.31 and a 52 week high of $122.20.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported ($0.73) EPS for the quarter, topping the consensus estimate of ($0.79) by $0.06. The company had revenue of $57.25 million during the quarter, compared to analyst estimates of $56.16 million. Rhythm Pharmaceuticals had a negative net margin of 103.57% and a negative return on equity of 266.56%. Rhythm Pharmaceuticals's quarterly revenue was up 36.9% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.72) earnings per share. Equities research analysts anticipate that Rhythm Pharmaceuticals, Inc. will post -3.08 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Hunter C. Smith sold 4,385 shares of Rhythm Pharmaceuticals stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $101.26, for a total value of $444,025.10. Following the completion of the sale, the chief financial officer directly owned 110,512 shares in the company, valued at $11,190,445.12. The trade was a 3.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CAO Christopher Paul German sold 5,614 shares of Rhythm Pharmaceuticals stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $89.56, for a total value of $502,789.84. Following the completion of the sale, the chief accounting officer owned 160 shares of the company's stock, valued at $14,329.60. The trade was a 97.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 27,267 shares of company stock valued at $2,719,955 over the last three months. Insiders own 6.10% of the company's stock.

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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