Rhythm Pharmaceuticals (NASDAQ:RYTM) Hits New 12-Month High - Still a Buy?

Key Points

• Rhythm Pharmaceuticals reached a new 52-week high of $106.52 during trading, closing at $104.21 with a volume of 754,704 shares traded.
• Analyst reports have been positive, with Bank of America raising its price target from $73.00 to $95.00 and Morgan Stanley setting a new target of $109.00, reflecting strong investor sentiment.
• Despite a revenue increase of 66.8% year-over-year to $48.50 million, the company reported a quarterly loss and missed earnings estimates, with a net margin of -117.13%.

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM - Get Free Report)'s stock price hit a new 52-week high during trading on Wednesday . The company traded as high as $106.52 and last traded at $104.21, with a volume of 754704 shares changing hands. The stock had previously closed at $103.15.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the company. Stifel Nicolaus lifted their price target on Rhythm Pharmaceuticals from $78.00 to $94.00 and gave the stock a "buy" rating in a research report on Thursday, May 29th. Guggenheim increased their price target on Rhythm Pharmaceuticals from $119.00 to $120.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. HC Wainwright raised their price target on Rhythm Pharmaceuticals from $80.00 to $100.00 and gave the stock a "buy" rating in a research report on Thursday, August 7th. Canaccord Genuity Group lifted their price objective on shares of Rhythm Pharmaceuticals from $92.00 to $105.00 and gave the stock a "buy" rating in a research note on Friday, July 18th. Finally, Oppenheimer boosted their price objective on shares of Rhythm Pharmaceuticals from $76.00 to $110.00 and gave the company an "outperform" rating in a research report on Thursday, July 10th. One investment analyst has rated the stock with a Strong Buy rating and fourteen have issued a Buy rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Buy" and an average target price of $101.57.

Rhythm Pharmaceuticals Price Performance

The firm has a market capitalization of $6.78 billion, a P/E ratio of -33.93 and a beta of 2.23. The firm has a 50-day moving average price of $90.03 and a two-hundred day moving average price of $69.50.

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

Insider Activity at Rhythm Pharmaceuticals

In related news, CAO Christopher Paul German sold 1,500 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $95.00, for a total value of $142,500.00. Following the completion of the sale, the chief accounting officer owned 922 shares in the company, valued at approximately $87,590. The trade was a 61.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Hunter C. Smith sold 3,477 shares of the firm's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $96.00, for a total value of $333,792.00. Following the transaction, the chief financial officer owned 116,915 shares in the company, valued at $11,223,840. The trade was a 2.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 112,146 shares of company stock worth $9,499,093. Insiders own 6.10% of the company's stock.

Institutional Investors Weigh In On Rhythm Pharmaceuticals

Hedge funds have recently modified their holdings of the business. BI Asset Management Fondsmaeglerselskab A S bought a new position in Rhythm Pharmaceuticals in the first quarter worth approximately $34,000. State of Wyoming purchased a new position in shares of Rhythm Pharmaceuticals in the 4th quarter valued at $61,000. Osaic Holdings Inc. raised its position in shares of Rhythm Pharmaceuticals by 65.9% in the 2nd quarter. Osaic Holdings Inc. now owns 979 shares of the company's stock worth $62,000 after acquiring an additional 389 shares in the last quarter. GF Fund Management CO. LTD. bought a new stake in shares of Rhythm Pharmaceuticals in the 4th quarter valued at about $72,000. Finally, CWM LLC grew its position in shares of Rhythm Pharmaceuticals by 92.3% in the 1st quarter. CWM LLC now owns 2,584 shares of the company's stock worth $137,000 after buying an additional 1,240 shares during the last quarter.

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.