Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) Receives Average Recommendation of "Buy" from Brokerages

Key Points

• Rhythm Pharmaceuticals has received an average recommendation of "Buy" from 15 analysts, with 14 recommending buying and one issuing a strong buy.
• The average twelve-month price target for Rhythm Pharmaceuticals stock, according to brokerages, is $101.57.
• Insider trading saw significant activity, with a total of 119,177 shares sold in the last 90 days, representing over $9.9 million in value.

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM - Get Free Report) has been given a consensus recommendation of "Buy" by the fifteen analysts that are presently covering the company, MarketBeat reports. Fourteen research analysts have rated the stock with a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $101.5714.

A number of equities research analysts have recently weighed in on RYTM shares. HC Wainwright lifted their price objective on Rhythm Pharmaceuticals from $80.00 to $100.00 and gave the stock a "buy" rating in a research report on Thursday, August 7th. Bank of America lifted their price objective on Rhythm Pharmaceuticals from $73.00 to $95.00 and gave the stock a "buy" rating in a research report on Thursday, July 10th. Leerink Partners started coverage on Rhythm Pharmaceuticals in a research report on Monday, July 7th. They issued an "outperform" rating and a $88.00 price objective on the stock. Leerink Partnrs upgraded Rhythm Pharmaceuticals to a "strong-buy" rating in a research report on Monday, July 7th. Finally, Wells Fargo & Company lifted their price objective on Rhythm Pharmaceuticals from $91.00 to $129.00 and gave the stock an "overweight" rating in a research report on Thursday, July 10th.

Insiders Place Their Bets

In related news, insider Joseph Shulman sold 4,188 shares of Rhythm Pharmaceuticals stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $100.07, for a total transaction of $419,093.16. Following the sale, the insider directly owned 8,509 shares in the company, valued at $851,495.63. The trade was a 32.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Pamela J. Cramer sold 1,520 shares of Rhythm Pharmaceuticals stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $85.93, for a total value of $130,613.60. Following the sale, the insider owned 20,814 shares in the company, valued at $1,788,547.02. This represents a 6.81% 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 valued at $9,977,553 in the last 90 days. 6.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Rhythm Pharmaceuticals

Several hedge funds have recently made changes to their positions in the company. Captrust Financial Advisors boosted its position in shares of Rhythm Pharmaceuticals by 0.7% during the second quarter. Captrust Financial Advisors now owns 17,471 shares of the company's stock valued at $1,104,000 after purchasing an additional 114 shares in the last quarter. Victory Capital Management Inc. raised its stake in Rhythm Pharmaceuticals by 1.0% during the first quarter. Victory Capital Management Inc. now owns 17,326 shares of the company's stock valued at $918,000 after buying an additional 174 shares during the last quarter. California State Teachers Retirement System raised its stake in Rhythm Pharmaceuticals by 0.5% during the second quarter. California State Teachers Retirement System now owns 42,917 shares of the company's stock valued at $2,712,000 after buying an additional 196 shares during the last quarter. Xponance Inc. raised its stake in Rhythm Pharmaceuticals by 4.7% during the first quarter. Xponance Inc. now owns 4,365 shares of the company's stock valued at $231,000 after buying an additional 197 shares during the last quarter. Finally, Principal Financial Group Inc. raised its stake in Rhythm Pharmaceuticals by 0.7% during the first quarter. Principal Financial Group Inc. now owns 37,156 shares of the company's stock valued at $1,968,000 after buying an additional 272 shares during the last quarter.

Rhythm Pharmaceuticals Price Performance

Shares of Rhythm Pharmaceuticals stock opened at $99.20 on Tuesday. The business's 50 day simple moving average is $82.68 and its two-hundred day simple moving average is $66.80. The stock has a market capitalization of $6.59 billion, a P/E ratio of -32.96 and a beta of 2.38. Rhythm Pharmaceuticals has a one year low of $45.00 and a one year high of $104.87.

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

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.

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