Rhythm Pharmaceuticals (NASDAQ:RYTM) Stock Price Down 6.6% Following Weak Earnings

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) traded down 6.6% on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $60.34 and last traded at $60.34. 97,426 shares changed hands during mid-day trading, a decline of 82% from the average session volume of 544,492 shares. The stock had previously closed at $64.63.

The company reported ($0.81) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.69) by ($0.12). The business had revenue of $37.72 million during the quarter, compared to analysts’ expectations of $40.43 million. Rhythm Pharmaceuticals had a negative net margin of 230.07% and a negative return on equity of 367.36%. The firm’s revenue for the quarter was up 25.9% on a year-over-year basis. During the same period last year, the company earned ($2.35) EPS.

Analysts Set New Price Targets

A number of brokerages have weighed in on RYTM. Wells Fargo & Company increased their price target on Rhythm Pharmaceuticals from $80.00 to $91.00 and gave the stock an “overweight” rating in a research note on Monday, April 7th. Bank of America raised shares of Rhythm Pharmaceuticals from a “neutral” rating to a “buy” rating and set a $63.00 target price on the stock in a research report on Monday, April 7th. Canaccord Genuity Group increased their price target on shares of Rhythm Pharmaceuticals from $81.00 to $92.00 and gave the stock a “buy” rating in a research note on Tuesday, April 8th. Morgan Stanley restated an “overweight” rating and set a $72.00 price objective on shares of Rhythm Pharmaceuticals in a report on Friday, March 7th. Finally, Needham & Company LLC lifted their target price on Rhythm Pharmaceuticals from $66.00 to $72.00 and gave the company a “buy” rating in a report on Wednesday. Thirteen research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $75.38.

Insider Buying and Selling

In other news, CEO David P. Meeker sold 9,896 shares of the business’s stock in a transaction that occurred on Wednesday, February 19th. The stock was sold at an average price of $57.22, for a total transaction of $566,249.12. Following the sale, the chief executive officer now directly owns 201,281 shares in the company, valued at approximately $11,517,298.82. The trade was a 4.69 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CAO Christopher Paul German sold 635 shares of the firm’s stock in a transaction dated Wednesday, February 19th. The stock was sold at an average price of $57.22, for a total transaction of $36,334.70. Following the transaction, the chief accounting officer now owns 2,070 shares of the company’s stock, valued at approximately $118,445.40. This represents a 23.48 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 151,733 shares of company stock worth $8,492,699. Corporate insiders own 5.60% of the company’s stock.

Hedge Funds Weigh In On Rhythm Pharmaceuticals

Institutional investors and hedge funds have recently bought and sold shares of the business. Federated Hermes Inc. raised its stake in shares of Rhythm Pharmaceuticals by 2.7% during the first quarter. Federated Hermes Inc. now owns 1,591,871 shares of the company’s stock worth $84,321,000 after buying an additional 42,236 shares during the last quarter. Westfield Capital Management Co. LP bought a new position in Rhythm Pharmaceuticals in the first quarter valued at approximately $71,038,000. Janus Henderson Group PLC boosted its stake in Rhythm Pharmaceuticals by 103.9% in the 4th quarter. Janus Henderson Group PLC now owns 1,219,554 shares of the company’s stock worth $68,309,000 after purchasing an additional 621,432 shares during the period. Marshall Wace LLP grew its holdings in shares of Rhythm Pharmaceuticals by 70.4% during the fourth quarter. Marshall Wace LLP now owns 692,803 shares of the company’s stock worth $38,783,000 after buying an additional 286,188 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD grew its stake in shares of Rhythm Pharmaceuticals by 24.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 685,152 shares of the company’s stock worth $38,355,000 after acquiring an additional 134,622 shares in the last quarter.

Rhythm Pharmaceuticals Trading Down 5.5 %

The stock has a market capitalization of $3.65 billion, a price-to-earnings ratio of -13.25 and a beta of 2.36. The firm’s 50 day simple moving average is $56.87 and its 200-day simple moving average is $56.94.

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.