Rhythm Pharmaceuticals (NASDAQ:RYTM) Issues Quarterly Earnings Results

Key Points

• Rhythm Pharmaceuticals exceeded earnings expectations, reporting quarterly EPS of negative $0.73 versus the consensus estimate of negative $0.81. Revenue increased 46.9% year over year, although the company remained unprofitable with a negative net margin of 93.33%.
• RYTM shares opened at $102.78, with a market capitalization of approximately $7.04 billion and a 12-month trading range of $74.50 to $122.20.
• Analyst sentiment remains positive: 15 analysts rate the stock Buy, two rate it Hold and one rates it Sell, resulting in a Moderate Buy consensus and an average price target of $138.73.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) announced its earnings results on Tuesday. The company reported ($0.73) earnings per share for the quarter, topping the consensus estimate of ($0.81) by $0.08, Zacks reports. Rhythm Pharmaceuticals had a negative net margin of 93.33% and a negative return on equity of 203.25%. During the same quarter in the prior year, the company posted ($0.75) EPS. The business's revenue was up 46.9% compared to the same quarter last year.

Rhythm Pharmaceuticals Price Performance

Shares of RYTM opened at $102.78 on Tuesday. The stock has a fifty day moving average price of $100.87 and a 200 day moving average price of $95.87. Rhythm Pharmaceuticals has a 12 month low of $74.50 and a 12 month high of $122.20. The company has a market cap of $7.04 billion, a P/E ratio of -32.84 and a beta of 1.92.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on RYTM. Canaccord Genuity Group upped their price objective on Rhythm Pharmaceuticals from $143.00 to $151.00 and gave the stock a "buy" rating in a research report on Tuesday, June 16th. Wall Street Zen upgraded Rhythm Pharmaceuticals from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. TD Cowen restated a "buy" rating on shares of Rhythm Pharmaceuticals in a research report on Wednesday, June 17th. Citigroup reissued a "market outperform" rating on shares of Rhythm Pharmaceuticals in a research note on Wednesday, June 3rd. Finally, Wells Fargo & Company boosted their price target on Rhythm Pharmaceuticals from $144.00 to $155.00 and gave the stock an "overweight" rating in a report on Monday, June 15th. Fifteen equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Rhythm Pharmaceuticals has a consensus rating of "Moderate Buy" and a consensus price target of $138.73.

Insider Activity

In other news, Director Lynn A. Tetrault sold 37,000 shares of the business's stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $100.32, for a total value of $3,711,840.00. Following the sale, the director owned 7,000 shares of the company's stock, valued at approximately $702,240. The trade was a 84.09% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 5.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Smartleaf Asset Management LLC raised its holdings in shares of Rhythm Pharmaceuticals by 39.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 399 shares of the company's stock worth $43,000 after acquiring an additional 113 shares in the last quarter. Osaic Holdings Inc. lifted its position in shares of Rhythm Pharmaceuticals by 65.9% during the 2nd quarter. Osaic Holdings Inc. now owns 979 shares of the company's stock worth $62,000 after buying an additional 389 shares during the period. State of Wyoming acquired a new stake in shares of Rhythm Pharmaceuticals during the 2nd quarter worth about $67,000. Persistent Asset Partners Ltd acquired a new stake in Rhythm Pharmaceuticals in the 4th quarter valued at about $155,000. Finally, Abel Hall LLC bought a new position in Rhythm Pharmaceuticals in the 4th quarter valued at $229,000.

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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