Rhythm Pharmaceuticals (NASDAQ:RYTM) Shares Gap Down – Here’s Why

Shares of Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) gapped down before the market opened on Tuesday. The stock had previously closed at $93.44, but opened at $84.83. Rhythm Pharmaceuticals shares last traded at $83.8950, with a volume of 1,186,779 shares traded.

Analyst Ratings Changes

RYTM has been the subject of a number of research analyst reports. HC Wainwright boosted their target price on Rhythm Pharmaceuticals from $105.00 to $130.00 and gave the company a “buy” rating in a research report on Monday, October 12th. William Blair initiated coverage on Rhythm Pharmaceuticals in a research note on Friday, October 16th. They issued an “outperform” rating for the company. Wolfe Research started coverage on Rhythm Pharmaceuticals in a research note on Thursday, September 17th. They issued an “outperform” rating for the company. Leerink Partners initiated coverage on Rhythm Pharmaceuticals in a report on Monday, September 14th. They set an “outperform” rating and a $133.00 price objective for the company. Finally, National Bank Financial set a $160.00 target price on Rhythm Pharmaceuticals in a research report on Wednesday, August 5th. Eighteen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $142.50.

Rhythm Pharmaceuticals Stock Down 11.0%

The company has a market capitalization of $5.70 billion, a PE ratio of -26.52 and a beta of 2.01. The company has a 50-day moving average price of $96.85 and a two-hundred day moving average price of $97.29.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last released its quarterly earnings data on Tuesday, November 3rd. The company reported ($0.61) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.71) by $0.10. The company had revenue of $92.13 million for the quarter, compared to analyst estimates of $85.56 million. Rhythm Pharmaceuticals had a negative return on equity of 159.87% and a negative net margin of 85.59%. The firm’s revenue for the quarter was up 79.6% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.82) EPS. As a group, equities analysts anticipate that Rhythm Pharmaceuticals, Inc. will post -2.77 EPS for the current fiscal year.

Insider Activity at Rhythm Pharmaceuticals

In related news, insider Alastair Garfield sold 7,763 shares of the company’s stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $117.57, for a total value of $912,695.91. Following the completion of the transaction, the insider directly owned 2,295 shares in the company, valued at approximately $269,823.15. The trade was a 77.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jennifer Lee sold 75,834 shares of the stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $117.38, for a total value of $8,901,394.92. Following the completion of the transaction, the executive vice president directly owned 54,233 shares in the company, valued at approximately $6,365,869.54. This represents a 58.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 258,450 shares of company stock valued at $28,796,497 in the last ninety days. Insiders own 5.90% of the company’s stock.

Hedge Funds Weigh In On Rhythm Pharmaceuticals

Hedge funds and other institutional investors have recently made changes to their positions in the business. GAMMA Investing LLC lifted its stake in Rhythm Pharmaceuticals by 36.3% in the second quarter. GAMMA Investing LLC now owns 364 shares of the company’s stock worth $40,000 after acquiring an additional 97 shares during the period. Global Retirement Partners LLC purchased a new position in Rhythm Pharmaceuticals during the 2nd quarter valued at $51,000. EverSource Wealth Advisors LLC increased its position in Rhythm Pharmaceuticals by 106.4% during the 1st quarter. EverSource Wealth Advisors LLC now owns 549 shares of the company’s stock valued at $48,000 after purchasing an additional 283 shares during the period. Pinnacle Wealth Planning Services Inc. increased its position in Rhythm Pharmaceuticals by 894.0% during the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 666 shares of the company’s stock valued at $63,000 after purchasing an additional 599 shares during the period. Finally, Nisa Investment Advisors LLC raised its holdings in Rhythm Pharmaceuticals by 9.1% in the 3rd quarter. Nisa Investment Advisors LLC now owns 1,630 shares of the company’s stock worth $155,000 after purchasing an additional 136 shares in the last quarter.

About Rhythm Pharmaceuticals

Rhythm Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing therapies for rare genetic diseases of obesity and related metabolic disorders. The company’s work is based on the melanocortin-4 receptor (MC4R) pathway, which plays an important role in regulating hunger and energy balance.

Rhythm’s principal product is IMCIVREE (setmelanotide), a targeted therapy designed to restore impaired MC4R pathway signaling. In the United States, IMCIVREE is approved for chronic weight management in adults and children at least 6 years old with obesity caused by certain genetic deficiencies, including POMC, PCSK1, or LEPR deficiency, as well as Bardet-Biedl syndrome.