Zacks Research Downgrades Rhythm Pharmaceuticals (NASDAQ:RYTM) to Strong Sell

Rhythm Pharmaceuticals (NASDAQ:RYTM) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other equities research analysts have also recently issued reports on the stock. Needham & Company LLC boosted their target price on shares of Rhythm Pharmaceuticals from $145.00 to $148.00 and gave the company a “buy” rating in a research report on Friday, January 9th. UBS Group reiterated a “buy” rating on shares of Rhythm Pharmaceuticals in a research note on Wednesday, December 17th. HC Wainwright increased their target price on shares of Rhythm Pharmaceuticals from $123.00 to $125.00 and gave the stock a “buy” rating in a research report on Tuesday. Citizens Jmp raised their target price on shares of Rhythm Pharmaceuticals from $141.00 to $167.00 and gave the stock a “market outperform” rating in a report on Friday, December 12th. Finally, Wall Street Zen cut Rhythm Pharmaceuticals from a “hold” rating to a “sell” rating in a research note on Saturday, November 8th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $131.29.

Rhythm Pharmaceuticals Stock Up 0.9%

Shares of RYTM stock opened at $102.59 on Monday. The firm has a 50 day moving average price of $106.01 and a two-hundred day moving average price of $100.75. The company has a market capitalization of $6.85 billion, a PE ratio of -33.09 and a beta of 2.00. Rhythm Pharmaceuticals has a 12-month low of $45.90 and a 12-month high of $122.20.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last announced its earnings results on Tuesday, November 4th. The company reported ($0.82) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.72) by ($0.10). The firm had revenue of $51.30 million for the quarter, compared to the consensus estimate of $50.71 million. Rhythm Pharmaceuticals had a negative return on equity of 433.21% and a negative net margin of 110.32%. As a group, research analysts expect that Rhythm Pharmaceuticals will post -4.32 EPS for the current year.

Insider Buying and Selling at Rhythm Pharmaceuticals

In other news, insider Joseph Shulman sold 9,748 shares of the business’s stock in a transaction on Thursday, October 30th. The stock was sold at an average price of $115.24, for a total transaction of $1,123,359.52. Following the completion of the transaction, the insider owned 8,509 shares of the company’s stock, valued at approximately $980,577.16. The trade was a 53.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Pamela J. Cramer sold 3,350 shares of the firm’s stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $111.00, for a total value of $371,850.00. Following the completion of the sale, the insider directly owned 20,814 shares in the company, valued at $2,310,354. This trade represents a 13.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 15,913 shares of company stock worth $1,818,963. Corporate insiders own 6.10% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. Smartleaf Asset Management LLC raised its holdings in Rhythm Pharmaceuticals by 97.2% during the 3rd quarter. Smartleaf Asset Management LLC now owns 286 shares of the company’s stock valued at $29,000 after acquiring an additional 141 shares during the period. Farther Finance Advisors LLC lifted its holdings in Rhythm Pharmaceuticals by 1,110.3% during the 3rd quarter. Farther Finance Advisors LLC now owns 351 shares of the company’s stock worth $35,000 after purchasing an additional 322 shares in the last quarter. GAMMA Investing LLC boosted its stake in Rhythm Pharmaceuticals by 48.6% in the 4th quarter. GAMMA Investing LLC now owns 361 shares of the company’s stock worth $39,000 after purchasing an additional 118 shares during the period. Optiver Holding B.V. grew its holdings in Rhythm Pharmaceuticals by 65.2% during the 3rd quarter. Optiver Holding B.V. now owns 365 shares of the company’s stock valued at $37,000 after buying an additional 144 shares in the last quarter. Finally, Osaic Holdings Inc. increased its position in shares of Rhythm Pharmaceuticals by 65.9% during the second quarter. Osaic Holdings Inc. now owns 979 shares of the company’s stock valued at $62,000 after buying an additional 389 shares during the period.

Rhythm Pharmaceuticals Company Profile

Rhythm Pharmaceuticals, Inc is a clinical‐stage biotechnology company dedicated to developing targeted therapies for rare genetic diseases of obesity and metabolic dysfunction. The company’s research focuses on the melanocortin‐4 receptor (MC4R) pathway, which plays a central role in regulating appetite, energy expenditure and body weight. Using proprietary peptide technology, Rhythm aims to provide precision treatments to patients with specific genetic variants that disrupt normal weight regulation.

The company’s lead investigational product, setmelanotide, is a selective MC4R agonist designed to restore signaling in patients with deficiencies in genes such as POMC, LEPR and PCSK1.