Rhythm Pharmaceuticals (NASDAQ:RYTM) Sets New 52-Week High - Time to Buy?

Key Points

• Rhythm Pharmaceuticals (RYTM) has reached a new 52-week high of $106.84, signaling strong market interest and trading activity.
• Analysts have increased their price targets for RYTM stock, with Bank of America and Wells Fargo setting new targets of $95.00 and $129.00 respectively, indicating optimism about the stock's future performance.
• The company reported a 66.8% year-over-year revenue increase, reaching $48.5 million, despite missing earnings expectations with a loss of ($0.75) per share.

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $106.84 and last traded at $106.28, with a volume of 443384 shares trading hands. The stock had previously closed at $100.77.

Analysts Set New Price Targets

Several research firms recently issued reports on RYTM. Bank of America increased their price target on shares of Rhythm Pharmaceuticals from $73.00 to $95.00 and gave the stock a "buy" rating in a report on Thursday, July 10th. Wells Fargo & Company increased their price target on shares of Rhythm Pharmaceuticals from $91.00 to $129.00 and gave the stock an "overweight" rating in a report on Thursday, July 10th. HC Wainwright upped their target price on shares of Rhythm Pharmaceuticals from $100.00 to $110.00 and gave the stock a "buy" rating in a research report on Monday, September 29th. Canaccord Genuity Group upped their target price on shares of Rhythm Pharmaceuticals from $92.00 to $105.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Finally, Leerink Partners initiated coverage on shares of Rhythm Pharmaceuticals in a research report on Monday, July 7th. They set an "outperform" rating and a $88.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Rhythm Pharmaceuticals presently has a consensus rating of "Moderate Buy" and an average target price of $106.64.

Rhythm Pharmaceuticals Trading Up 4.4%

The stock's 50 day moving average price is $98.78 and its two-hundred day moving average price is $78.04. The firm has a market capitalization of $6.99 billion, a PE ratio of -34.95 and a beta of 2.12.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported ($0.75) earnings per share for the quarter, missing analysts' consensus estimates of ($0.66) by ($0.09). The business had revenue of $48.50 million for 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%.The company's revenue for the quarter was up 66.8% on a year-over-year basis. During the same period last year, the business earned ($0.55) earnings per share. Analysts expect that Rhythm Pharmaceuticals, Inc. will post -4.32 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Pamela J. Cramer sold 1,520 shares of the firm's stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $85.93, for a total transaction of $130,613.60. Following the sale, the insider owned 20,814 shares in the company, valued at $1,788,547.02. This trade represents a 6.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Joseph Shulman sold 4,188 shares of the firm's stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $100.07, for a total value of $419,093.16. Following the sale, the insider owned 8,509 shares in the company, valued at $851,495.63. This trade represents a 32.98% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 39,280 shares of company stock worth $3,755,655 over the last ninety days. Company insiders own 6.10% of the company's stock.

Hedge Funds Weigh In On Rhythm Pharmaceuticals

A number of hedge funds have recently made changes to their positions in the stock. Farther Finance Advisors LLC boosted its holdings in shares of Rhythm Pharmaceuticals by 1,110.3% in the 3rd quarter. Farther Finance Advisors LLC now owns 351 shares of the company's stock valued at $35,000 after purchasing an additional 322 shares during the last quarter. Exchange Traded Concepts LLC acquired a new position in shares of Rhythm Pharmaceuticals in the 3rd quarter valued at $645,000. Osaic Holdings Inc. boosted its holdings in shares of Rhythm Pharmaceuticals by 65.9% in the 2nd quarter. Osaic Holdings Inc. now owns 979 shares of the company's stock valued at $62,000 after purchasing an additional 389 shares during the last quarter. State of Wyoming acquired a new position in shares of Rhythm Pharmaceuticals in the 2nd quarter valued at $67,000. Finally, Tower Research Capital LLC TRC lifted its holdings in shares of Rhythm Pharmaceuticals by 477.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 6,111 shares of the company's stock valued at $386,000 after acquiring an additional 5,053 shares in 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.

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