Rhythm Pharmaceuticals (NASDAQ:RYTM) Stock Price Crosses Above 200 Day Moving Average Following Analyst Downgrade

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM)’s share price passed above its 200-day moving average during trading on Wednesday after Citizens Jmp raised their price target on the stock from $160.00 to $166.00. The stock has a 200-day moving average of $97.18 and traded as high as $110.68. Citizens Jmp currently has a market outperform rating on the stock. Rhythm Pharmaceuticals shares last traded at $110.68, with a volume of 5,480,755 shares changing hands.

A number of other brokerages have also issued reports on RYTM. Deutsche Bank Aktiengesellschaft began coverage on Rhythm Pharmaceuticals in a research report on Friday, August 28th. They set a “hold” rating and a $120.00 target price on the stock. Wolfe Research began coverage on shares of Rhythm Pharmaceuticals in a research report on Thursday, September 17th. They set an “outperform” rating for the company. Needham & Company LLC decreased their price objective on shares of Rhythm Pharmaceuticals from $130.00 to $114.00 and set a “buy” rating on the stock in a report on Tuesday. Canaccord Genuity Group set a $154.00 target price on shares of Rhythm Pharmaceuticals in a research report on Wednesday, August 5th. Finally, JPMorgan Chase & Co. cut their target price on shares of Rhythm Pharmaceuticals from $146.00 to $145.00 and set an “overweight” rating for the company in a research note on Thursday, October 15th. Eighteen analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Rhythm Pharmaceuticals currently has an average rating of “Moderate Buy” and a consensus target price of $141.94.

Insider Transactions at Rhythm Pharmaceuticals

In other Rhythm Pharmaceuticals news, EVP Yann Mazabraud sold 57,000 shares of Rhythm Pharmaceuticals stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $116.15, for a total transaction of $6,620,550.00. Following the sale, the executive vice president owned 55,655 shares of the company’s stock, valued at $6,464,328.25. The trade was a 50.60% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Alastair Garfield sold 7,763 shares of Rhythm Pharmaceuticals stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $117.57, for a total transaction of $912,695.91. Following the sale, the insider directly owned 2,295 shares in the company, valued at approximately $269,823.15. This trade represents a 77.18% 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 sold 258,450 shares of company stock worth $28,796,497 in the last quarter. 5.90% of the stock is owned by insiders.

Key Headlines Impacting Rhythm Pharmaceuticals

Here are the key news stories impacting Rhythm Pharmaceuticals this week:

• Positive Sentiment: Reported acquisition offer: The Wall Street Journal and Reuters reported that AstraZeneca recently offered about $10 billion for Rhythm, potentially giving investors a substantial takeover catalyst. Reuters report Wall Street Journal article
• Positive Sentiment: Expanded coverage potential: NICE issued positive guidance expanding IMCIVREE coverage in England to include adults with genetically confirmed Bardet-Biedl syndrome, potentially widening access to the treatment. Company announcement
• Positive Sentiment: Quarterly results beat expectations: Third-quarter revenue was $92.1 million, up 79.6% year over year and ahead of estimates; the $0.61-per-share loss was also narrower than expected. Quarterly results
• Neutral Sentiment: Pipeline funding and revised license terms: Rhythm secured up to $750 million in financing and reduced LG Chem’s royalty rate to 1%, while committing to $350 million in fixed payments over four years. The arrangement supports development but includes significant future payments. License amendment
• Negative Sentiment: Recent earnings-related volatility: Rhythm’s shares reportedly fell after its quarterly report, and Needham lowered its price target to $114 despite maintaining a Buy rating. The takeover report has since become the more prominent catalyst. Earnings reaction

Institutional Trading of Rhythm Pharmaceuticals

Several large investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in shares of Rhythm Pharmaceuticals in the second quarter valued at about $683,601,000. Primecap Management Co. CA acquired a new stake in Rhythm Pharmaceuticals during the second quarter worth about $351,838,000. Jupiter Topco LLC acquired a new stake in Rhythm Pharmaceuticals during the second quarter worth about $102,752,000. Pictet Asset Management Holding SA raised its stake in Rhythm Pharmaceuticals by 2.0% during the third quarter. Pictet Asset Management Holding SA now owns 976,487 shares of the company’s stock worth $93,019,000 after purchasing an additional 18,702 shares during the period. Finally, Siren L.L.C. raised its stake in Rhythm Pharmaceuticals by 45.1% during the first quarter. Siren L.L.C. now owns 725,511 shares of the company’s stock worth $63,098,000 after purchasing an additional 225,536 shares during the period.

Rhythm Pharmaceuticals Price Performance

The company has a market capitalization of $7.58 billion, a PE ratio of -38.17 and a beta of 2.17. The business’s 50 day simple moving average is $96.29 and its 200 day simple moving average is $97.18.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last posted its quarterly earnings results on Tuesday, November 3rd. The company reported ($0.61) earnings per share for the quarter, beating the consensus estimate of ($0.71) by $0.10. The business had revenue of $92.13 million during the quarter, compared to analysts’ expectations of $85.56 million. Rhythm Pharmaceuticals had a negative net margin of 69.03% and a negative return on equity of 159.32%. The business’s revenue for the quarter was up 79.6% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.82) EPS. As a group, analysts anticipate that Rhythm Pharmaceuticals, Inc. will post -2.77 EPS for the current year.

Rhythm Pharmaceuticals Company Profile

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.