Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Rhythm Pharmaceuticals has an average analyst rating of “Moderate Buy” from 17 covering analysts, with 14 buy ratings and an average 1-year target price of about $138.29.
• Recent analyst updates were mostly positive, including reiterated buy/outperform calls from Citigroup, TD Cowen, Canaccord Genuity, and Royal Bank of Canada, with some target prices raised.
• Shares were down 3.3% to $106.09, while the company also reported a smaller-than-expected quarterly loss and stronger-than-expected revenue growth, with revenue up 83.8% year over year.

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM - Get Free Report) has received an average recommendation of "Moderate Buy" from the seventeen analysts that are currently covering the firm, MarketBeat.com reports. One analyst has rated the stock with a sell rating, two have issued a hold rating and fourteen have issued a buy rating on the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $138.2857.

RYTM has been the subject of several recent research reports. Citigroup reiterated a "market outperform" rating on shares of Rhythm Pharmaceuticals in a research note on Wednesday, June 3rd. TD Cowen reaffirmed a "buy" rating on shares of Rhythm Pharmaceuticals in a report on Wednesday, June 17th. Wall Street Zen raised Rhythm Pharmaceuticals from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Canaccord Genuity Group upped their target price on Rhythm Pharmaceuticals from $143.00 to $151.00 and gave the company a "buy" rating in a research report on Tuesday, June 16th. Finally, Royal Bank Of Canada increased their target price on Rhythm Pharmaceuticals from $137.00 to $141.00 and gave the stock an "outperform" rating in a report on Tuesday, July 7th.

Insider Buying and Selling

In related 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 transaction of $3,711,840.00. Following the completion of the sale, the director owned 7,000 shares of the company's stock, valued at $702,240. This represents a 84.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 5.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rhythm Pharmaceuticals

Hedge funds and other institutional investors have recently made changes to their positions in the company. EverSource Wealth Advisors LLC lifted its holdings in shares of 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 during the period. SBI Securities Co. Ltd. increased its stake in Rhythm Pharmaceuticals by 73.2% in the fourth quarter. SBI Securities Co. Ltd. now owns 343 shares of the company's stock valued at $37,000 after acquiring an additional 145 shares during the last quarter. GAMMA Investing LLC increased its stake in Rhythm Pharmaceuticals by 48.6% in the fourth quarter. GAMMA Investing LLC now owns 361 shares of the company's stock valued at $39,000 after acquiring an additional 118 shares during the last quarter. Smartleaf Asset Management LLC raised its position in Rhythm Pharmaceuticals by 39.5% during the fourth 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 raised its position in Rhythm Pharmaceuticals by 328.9% during the fourth quarter. Covestor Ltd now owns 579 shares of the company's stock valued at $62,000 after purchasing an additional 444 shares in the last quarter.

Rhythm Pharmaceuticals Stock Down 3.3%

Shares of Rhythm Pharmaceuticals stock opened at $106.09 on Friday. The stock has a market capitalization of $7.27 billion, a price-to-earnings ratio of -33.89 and a beta of 1.88. Rhythm Pharmaceuticals has a twelve month low of $74.50 and a twelve month high of $122.20. The company has a 50-day simple moving average of $97.40 and a two-hundred day simple moving average of $95.85.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported ($0.83) earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $55.78 million. During the same quarter in the prior year, the business posted ($0.81) EPS. The business's revenue was up 83.8% compared to the same quarter last year. On average, sell-side analysts anticipate that Rhythm Pharmaceuticals will post -3.11 earnings per share for the current fiscal year.

About Rhythm Pharmaceuticals

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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