HC Wainwright Issues Pessimistic Outlook for RYTM Earnings

Key Points

• HC Wainwright cut its Q3 2027 EPS estimate for Rhythm Pharmaceuticals to $0.31 from $0.33, while keeping a Buy rating and $100 price target.
• Rhythm recently reported better-than-expected Q1 results, with EPS of ($0.83) versus the ($0.86) consensus and revenue of $60.11 million, up 83.8% year over year.
• Despite mostly positive analyst sentiment overall, the stock was down 7.2% and closed near $87.39, while the broader consensus still shows a Moderate Buy with a target of $131.81.

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM - Free Report) - Stock analysts at HC Wainwright dropped their Q3 2027 EPS estimates for Rhythm Pharmaceuticals in a note issued to investors on Monday, May 11th. HC Wainwright analyst R. Selvaraju now forecasts that the company will post earnings per share of $0.31 for the quarter, down from their previous estimate of $0.33. HC Wainwright has a "Buy" rating and a $100.00 price target on the stock. The consensus estimate for Rhythm Pharmaceuticals' current full-year earnings is ($3.04) per share. HC Wainwright also issued estimates for Rhythm Pharmaceuticals' Q4 2027 earnings at $0.66 EPS and FY2027 earnings at $0.53 EPS.

Several other analysts have also commented on the company. Citigroup dropped their price objective on Rhythm Pharmaceuticals from $136.00 to $131.00 and set a "buy" rating on the stock in a report on Tuesday, March 17th. Weiss Ratings reissued a "sell (d-)" rating on shares of Rhythm Pharmaceuticals in a research note on Tuesday, April 21st. Canaccord Genuity Group boosted their price target on shares of Rhythm Pharmaceuticals from $140.00 to $143.00 and gave the stock a "buy" rating in a report on Thursday. Jefferies Financial Group restated a "buy" rating and set a $125.00 price objective on shares of Rhythm Pharmaceuticals in a research report on Tuesday, March 3rd. Finally, Stifel Nicolaus set a $131.00 price objective on shares of Rhythm Pharmaceuticals in a report on Thursday, February 26th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued 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 a consensus rating of "Moderate Buy" and a consensus target price of $131.81.

Rhythm Pharmaceuticals Stock Down 7.2%

Shares of Rhythm Pharmaceuticals stock opened at $87.39 on Tuesday. The firm has a market cap of $5.99 billion, a PE ratio of -27.92 and a beta of 1.94. Rhythm Pharmaceuticals has a twelve month low of $55.31 and a twelve month high of $122.20. The business has a 50-day moving average price of $87.61 and a 200 day moving average price of $98.97.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported ($0.83) earnings per share (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 business had revenue of $60.11 million for the quarter, compared to analyst estimates of $55.78 million. During the same period in the prior year, the company posted ($0.81) EPS. The company's revenue for the quarter was up 83.8% on a year-over-year basis.

Insider Activity at Rhythm Pharmaceuticals

In other news, CAO Christopher Paul German sold 5,614 shares of the company's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $89.56, for a total transaction 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. This represents a 97.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Hunter C. Smith sold 4,385 shares of the stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $101.26, for a total transaction of $444,025.10. Following the completion of the sale, the chief financial officer owned 110,512 shares of the company's stock, valued at $11,190,445.12. This trade represents a 3.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 17,926 shares of company stock valued at $1,737,778 over the last quarter. 5.90% of the stock is owned by company insiders.

Institutional Trading of Rhythm Pharmaceuticals

A number of hedge funds have recently bought and sold shares of the business. Nisa Investment Advisors LLC lifted its position in Rhythm Pharmaceuticals by 956.9% during the third quarter. Nisa Investment Advisors LLC now owns 13,254 shares of the company's stock worth $1,339,000 after buying an additional 12,000 shares in the last quarter. EFG Asset Management North America Corp. purchased a new stake in Rhythm Pharmaceuticals in the 3rd quarter valued at $2,047,000. Penserra Capital Management LLC acquired a new stake in shares of Rhythm Pharmaceuticals in the 3rd quarter worth $3,073,000. M&T Bank Corp purchased a new position in shares of Rhythm Pharmaceuticals during the 4th quarter worth $9,202,000. Finally, Hillsdale Investment Management Inc. purchased a new position in shares of Rhythm Pharmaceuticals during the 3rd quarter worth $4,302,000.

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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