Rhythm Pharmaceuticals (NASDAQ:RYTM) Shares Gap Down on Disappointing Earnings

Shares of Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $43.88, but opened at $40.86. Rhythm Pharmaceuticals shares last traded at $39.34, with a volume of 84,195 shares traded.

The company reported ($2.35) EPS for the quarter, missing analysts’ consensus estimates of ($2.34) by ($0.01). Rhythm Pharmaceuticals had a negative net margin of 238.50% and a negative return on equity of 96.02%. The business had revenue of $26.00 million during the quarter, compared to analysts’ expectations of $26.90 million. During the same quarter in the prior year, the firm earned ($0.92) EPS. Rhythm Pharmaceuticals’s revenue for the quarter was up 126.1% compared to the same quarter last year.

Analyst Ratings Changes

A number of research firms have commented on RYTM. Bank of America cut shares of Rhythm Pharmaceuticals from a “buy” rating to a “neutral” rating and decreased their target price for the company from $49.00 to $42.00 in a research report on Wednesday. Wells Fargo & Company decreased their price objective on shares of Rhythm Pharmaceuticals from $53.00 to $52.00 and set an “overweight” rating on the stock in a report on Thursday, April 18th. The Goldman Sachs Group lifted their target price on shares of Rhythm Pharmaceuticals from $42.00 to $52.00 and gave the company a “buy” rating in a report on Thursday, January 25th. Canaccord Genuity Group decreased their price target on Rhythm Pharmaceuticals from $80.00 to $79.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Needham & Company LLC dropped their price objective on Rhythm Pharmaceuticals from $50.00 to $46.00 and set a “buy” rating for the company in a research note on Tuesday. One analyst has rated the stock with a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $54.33.

Insider Activity at Rhythm Pharmaceuticals

In other Rhythm Pharmaceuticals news, CEO David P. Meeker sold 45,494 shares of the stock in a transaction that occurred on Tuesday, March 19th. The shares were sold at an average price of $39.22, for a total transaction of $1,784,274.68. Following the sale, the chief executive officer now directly owns 174,605 shares in the company, valued at approximately $6,848,008.10. The transaction was disclosed in a document filed with the SEC, which is available through this link. In related news, CEO David P. Meeker sold 45,494 shares of the business’s stock in a transaction on Tuesday, March 19th. The stock was sold at an average price of $39.22, for a total transaction of $1,784,274.68. Following the completion of the transaction, the chief executive officer now directly owns 174,605 shares of the company’s stock, valued at approximately $6,848,008.10. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Joseph Shulman sold 71,774 shares of the company’s stock in a transaction dated Friday, February 9th. The stock was sold at an average price of $50.38, for a total value of $3,615,974.12. Following the sale, the insider now owns 2,686 shares in the company, valued at approximately $135,320.68. The disclosure for this sale can be found here. Over the last quarter, insiders sold 172,069 shares of company stock worth $7,626,355. Corporate insiders own 4.70% of the company’s stock.

Institutional Trading of Rhythm Pharmaceuticals

Several hedge funds have recently added to or reduced their stakes in the company. AJOVista LLC acquired a new position in Rhythm Pharmaceuticals during the 4th quarter worth approximately $42,000. Nisa Investment Advisors LLC grew its stake in shares of 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 purchasing an additional 600 shares in the last quarter. China Universal Asset Management Co. Ltd. increased its holdings 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 buying an additional 713 shares during the last quarter. Quarry LP purchased a new position in Rhythm Pharmaceuticals in the fourth quarter valued at $69,000. Finally, ZRC Wealth Management LLC raised its stake in Rhythm Pharmaceuticals by 392.8% in the first quarter. ZRC Wealth Management LLC now owns 1,971 shares of the company’s stock valued at $85,000 after buying an additional 1,571 shares in the last quarter.

Rhythm Pharmaceuticals Trading Down 1.1 %

The stock has a fifty day simple moving average of $40.68 and a 200-day simple moving average of $39.85. The company has a market capitalization of $2.37 billion, a PE ratio of -12.16 and a beta of 1.94.

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.