Rhythm Pharmaceuticals (NASDAQ:RYTM) Posts Earnings Results, Misses Estimates By $0.09 EPS

Key Points

• Rhythm Pharmaceuticals reported a quarterly loss of ($0.75) EPS, missing estimates by ($0.09), despite revenue of $48.50 million which exceeded estimates.
• The company's stock fell 1.4% to $89.01, with a market capitalization of $5.66 billion and a price-to-earnings ratio of -31.67.
• Wall Street analysts maintain a consensus "Buy" rating for the stock, with target prices ranging from $91.93 to $129.00.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) released its earnings results on Tuesday. The company reported ($0.75) earnings per share for the quarter, missing analysts' consensus estimates of ($0.66) by ($0.09), Zacks reports. The firm had revenue of $48.50 million during the quarter, compared to analyst estimates of $43.72 million. Rhythm Pharmaceuticals had a negative return on equity of 739.62% and a negative net margin of 123.26%. The business's revenue for the quarter was up 66.8% on a year-over-year basis. During the same quarter last year, the company earned ($0.55) earnings per share.

Rhythm Pharmaceuticals Stock Down 1.4%

Rhythm Pharmaceuticals stock traded down $1.24 during midday trading on Tuesday, hitting $89.01. 323,356 shares of the stock were exchanged, compared to its average volume of 670,292. The stock has a market capitalization of $5.66 billion, a price-to-earnings ratio of -31.67 and a beta of 2.38. Rhythm Pharmaceuticals has a 52-week low of $42.74 and a 52-week high of $94.80. The business's 50-day moving average price is $72.95 and its 200-day moving average price is $62.82.

Insider Transactions at Rhythm Pharmaceuticals

In other news, CFO Hunter C. Smith sold 42,120 shares of the firm's stock in a transaction on Wednesday, July 9th. The stock was sold at an average price of $80.48, for a total transaction of $3,389,817.60. Following the completion of the sale, the chief financial officer directly owned 116,915 shares of the company's stock, valued at $9,409,319.20. This trade represents a 26.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Joseph Shulman sold 7,969 shares of the stock in a transaction dated Wednesday, July 9th. The shares were sold at an average price of $77.78, for a total transaction of $619,828.82. Following the transaction, the insider owned 8,509 shares of the company's stock, valued at approximately $661,830.02. The trade was a 48.36% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 81,417 shares of company stock worth $6,352,511. 6.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Rhythm Pharmaceuticals

An institutional investor recently raised its position in Rhythm Pharmaceuticals stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM - Free Report) by 6.4% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 35,282 shares of the company's stock after purchasing an additional 2,126 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. owned about 0.06% of Rhythm Pharmaceuticals worth $1,874,000 at the end of the most recent reporting period.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on RYTM. Morgan Stanley set a $95.00 target price on Rhythm Pharmaceuticals and gave the stock an "overweight" rating in a report on Wednesday, July 9th. The Goldman Sachs Group started coverage on Rhythm Pharmaceuticals in a research report on Thursday, July 10th. They issued a "buy" rating and a $97.00 price target on the stock. Leerink Partnrs raised Rhythm Pharmaceuticals to a "strong-buy" rating in a report on Monday, July 7th. Wall Street Zen upgraded Rhythm Pharmaceuticals from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Finally, Wells Fargo & Company boosted their price objective on shares of Rhythm Pharmaceuticals from $91.00 to $129.00 and gave the stock an "overweight" rating in a research report on Thursday, July 10th. One equities research analyst has rated the stock with a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Buy" and an average price target of $91.93.

Rhythm Pharmaceuticals Company Profile

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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