Rhythm Pharmaceuticals (NASDAQ:RYTM) Sees Unusually-High Trading Volume – Still a Buy?

Shares of Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) saw an uptick in trading volume on Tuesday . 661,673 shares changed hands during mid-day trading, an increase of 27% from the previous session’s volume of 521,279 shares.The stock last traded at $56.68 and had previously closed at $54.54.

Analyst Ratings Changes

A number of research firms recently issued reports on RYTM. Guggenheim initiated coverage on Rhythm Pharmaceuticals in a research report on Monday, October 21st. They issued a “buy” rating and a $70.00 target price on the stock. Oppenheimer initiated coverage on Rhythm Pharmaceuticals in a report on Friday, December 20th. They issued an “outperform” rating and a $76.00 price objective for the company. TD Cowen boosted their target price on shares of Rhythm Pharmaceuticals from $55.00 to $65.00 and gave the stock a “buy” rating in a report on Wednesday, November 6th. Needham & Company LLC lifted their price objective on shares of Rhythm Pharmaceuticals from $55.00 to $64.00 and gave the company a “buy” rating in a research report on Wednesday, November 6th. Finally, The Goldman Sachs Group upped their target price on shares of Rhythm Pharmaceuticals from $59.00 to $66.00 and gave the company a “buy” rating in a report on Thursday, December 5th. One equities research analyst has rated the stock with a hold rating and ten have given a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $68.09.

Rhythm Pharmaceuticals Stock Performance

The company has a market capitalization of $3.59 billion, a price-to-earnings ratio of -13.50 and a beta of 2.16. The firm has a fifty day moving average price of $57.59 and a 200-day moving average price of $52.50.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last posted its quarterly earnings results on Tuesday, November 5th. The company reported ($0.73) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.80) by $0.07. The business had revenue of $33.20 million for the quarter, compared to analyst estimates of $32.52 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 47.6% on a year-over-year basis. During the same quarter last year, the business posted ($0.76) EPS. On average, sell-side analysts forecast that Rhythm Pharmaceuticals, Inc. will post -4.33 EPS for the current fiscal year.

Insider Activity at Rhythm Pharmaceuticals

In related news, EVP Jennifer Kayden Lee sold 66,861 shares of the firm’s stock in a transaction on Monday, November 11th. The stock was sold at an average price of $66.33, for a total transaction of $4,434,890.13. Following the sale, the executive vice president now owns 972 shares of the company’s stock, valued at $64,472.76. This trade represents a 98.57 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Joseph Shulman sold 13,281 shares of the company’s stock in a transaction dated Monday, November 11th. The stock was sold at an average price of $66.44, for a total value of $882,389.64. The disclosure for this sale can be found here. Insiders have sold 84,830 shares of company stock valued at $5,622,000 over the last ninety days. 5.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Rhythm Pharmaceuticals

A number of institutional investors have recently added to or reduced their stakes in the business. FMR LLC raised its position in shares of Rhythm Pharmaceuticals by 79.7% during the third quarter. FMR LLC now owns 50,295 shares of the company’s stock worth $2,635,000 after acquiring an additional 22,306 shares during the last quarter. Principal Financial Group Inc. increased its position in Rhythm Pharmaceuticals by 241.9% during the 3rd quarter. Principal Financial Group Inc. now owns 32,586 shares of the company’s stock valued at $1,707,000 after purchasing an additional 23,054 shares during the period. BNP Paribas Financial Markets raised its holdings in Rhythm Pharmaceuticals by 307.1% during the 3rd quarter. BNP Paribas Financial Markets now owns 14,425 shares of the company’s stock worth $756,000 after purchasing an additional 10,882 shares during the last quarter. Frazier Life Sciences Management L.P. lifted its position in shares of Rhythm Pharmaceuticals by 8.3% in the 2nd quarter. Frazier Life Sciences Management L.P. now owns 2,371,304 shares of the company’s stock worth $97,366,000 after purchasing an additional 181,125 shares during the period. Finally, Creative Planning bought a new stake in shares of Rhythm Pharmaceuticals in the 3rd quarter valued at $450,000.

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.