Rhythm Pharmaceuticals (NASDAQ:RYTM) Shares Gap Down After Analyst Downgrade

Shares of Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) gapped down before the market opened on Tuesday after Needham & Company LLC lowered their price target on the stock from $50.00 to $46.00. The stock had previously closed at $43.88, but opened at $40.86. Needham & Company LLC currently has a buy rating on the stock. Rhythm Pharmaceuticals shares last traded at $39.34, with a volume of 84,195 shares changing hands.

Several other brokerages have also weighed in on RYTM. The Goldman Sachs Group lifted their price target on Rhythm Pharmaceuticals from $42.00 to $52.00 and gave the company a “buy” rating in a research note on Thursday, January 25th. Wells Fargo & Company dropped their price target on shares of Rhythm Pharmaceuticals from $53.00 to $52.00 and set an “overweight” rating on the stock in a research note on Thursday, April 18th. Five equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat, Rhythm Pharmaceuticals presently has an average rating of “Buy” and an average target price of $46.40.

Insider Activity at Rhythm Pharmaceuticals

In other news, insider Joseph Shulman sold 71,774 shares of the company’s stock in a transaction on Friday, February 9th. The shares were sold at an average price of $50.38, for a total transaction of $3,615,974.12. Following the completion of the sale, the insider now owns 2,686 shares of the company’s stock, valued at $135,320.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In other Rhythm Pharmaceuticals news, insider Joseph Shulman sold 71,774 shares of the stock in a transaction dated Friday, February 9th. The shares were sold at an average price of $50.38, for a total value of $3,615,974.12. Following the completion of the sale, the insider now owns 2,686 shares in the company, valued at approximately $135,320.68. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Hunter C. Smith sold 15,515 shares of the company’s stock in a transaction that occurred on Tuesday, March 19th. The shares were sold at an average price of $39.22, for a total value of $608,498.30. Following the completion of the sale, the chief financial officer now owns 97,939 shares of the company’s stock, valued at $3,841,167.58. The disclosure for this sale can be found here. In the last ninety days, insiders sold 172,069 shares of company stock valued at $7,626,355. 4.70% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of RYTM. Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in Rhythm Pharmaceuticals by 4.6% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 9,181 shares of the company’s stock valued at $422,000 after purchasing an additional 406 shares during the last quarter. New York State Common Retirement Fund lifted its holdings in Rhythm Pharmaceuticals by 2.7% in the third quarter. New York State Common Retirement Fund now owns 20,641 shares of the company’s stock valued at $473,000 after acquiring an additional 541 shares during the last quarter. Teacher Retirement System of Texas grew its position in Rhythm Pharmaceuticals by 4.9% in the third quarter. Teacher Retirement System of Texas now owns 12,916 shares of the company’s stock worth $296,000 after acquiring an additional 600 shares during the period. Nisa Investment Advisors LLC increased its stake in Rhythm Pharmaceuticals by 91.5% during the fourth quarter. Nisa Investment Advisors LLC now owns 1,256 shares of the company’s stock worth $58,000 after acquiring an additional 600 shares during the last quarter. Finally, China Universal Asset Management Co. Ltd. raised its position in Rhythm Pharmaceuticals by 95.7% in the third quarter. China Universal Asset Management Co. Ltd. now owns 1,458 shares of the company’s stock valued at $33,000 after purchasing an additional 713 shares during the period.

Rhythm Pharmaceuticals Stock Performance

The firm has a market cap of $2.40 billion, a price-to-earnings ratio of -12.30 and a beta of 1.94. The company has a 50 day moving average price of $40.79 and a 200 day moving average price of $39.86.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last announced its earnings results on Thursday, February 22nd. The company reported ($0.70) earnings per share for the quarter, hitting the consensus estimate of ($0.70). The company had revenue of $24.23 million during the quarter, compared to analyst estimates of $25.38 million. Rhythm Pharmaceuticals had a negative net margin of 238.50% and a negative return on equity of 96.02%. Rhythm Pharmaceuticals’s revenue was up 175.7% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.75) earnings per share. On average, research analysts forecast that Rhythm Pharmaceuticals, Inc. will post -4.02 earnings per share for the current year.

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.