Rhythm Pharmaceuticals (NASDAQ:RYTM) Stock Price Target Cut by Needham & Company LLC

Rhythm Pharmaceuticals (NASDAQ:RYTM) had its price target cut by research analysts at Needham & Company LLC from $130.00 to $114.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The brokerage currently has a “buy” rating on the stock. Needham & Company LLC‘s price objective indicates a potential upside of 30.11% from the stock’s previous close.

RYTM has been the topic of a number of other research reports. Citigroup restated a “market outperform” rating on shares of Rhythm Pharmaceuticals in a report on Wednesday, August 5th. Leerink Partners started coverage on shares of Rhythm Pharmaceuticals in a report on Monday, September 14th. They set an “outperform” rating and a $133.00 target price for the company. William Blair assumed coverage on Rhythm Pharmaceuticals in a research report on Friday, October 16th. They issued an “outperform” rating on the stock. Royal Bank Of Canada upped their price target on Rhythm Pharmaceuticals from $155.00 to $159.00 and gave the stock an “outperform” rating in a research note on Thursday, October 8th. Finally, Deutsche Bank Aktiengesellschaft started coverage on Rhythm Pharmaceuticals in a research report on Friday, August 28th. They set a “hold” rating and a $120.00 price objective for the company. Eighteen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Rhythm Pharmaceuticals currently has a consensus rating of “Moderate Buy” and an average target price of $141.61.

Rhythm Pharmaceuticals Stock Down 6.2%

Shares of RYTM stock traded down $5.82 during mid-day trading on Tuesday, reaching $87.62. 5,132,320 shares of the company’s stock traded hands, compared to its average volume of 773,576. Rhythm Pharmaceuticals has a 12 month low of $74.50 and a 12 month high of $122.20. The company has a market cap of $6.00 billion, a P/E ratio of -28.09 and a beta of 2.01. The company’s 50-day moving average price is $96.85 and its 200-day moving average price is $97.29.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last issued its quarterly earnings results on Tuesday, November 3rd. The company reported ($0.61) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.71) by $0.10. The company had revenue of $92.13 million during the quarter, compared to analyst estimates of $85.56 million. Rhythm Pharmaceuticals had a negative net margin of 85.59% and a negative return on equity of 159.87%. Rhythm Pharmaceuticals’s quarterly revenue was up 79.6% compared to the same quarter last year. During the same period last year, the business earned ($0.82) EPS. Equities analysts predict that Rhythm Pharmaceuticals will post -2.77 earnings per share for the current year.

Insider Buying and Selling at Rhythm Pharmaceuticals

In other news, CFO Hunter C. Smith sold 62,774 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $105.46, for a total value of $6,620,146.04. Following the transaction, the chief financial officer owned 114,024 shares in the company, valued at approximately $12,024,971.04. This represents a 35.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Alastair Garfield sold 7,763 shares of the stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $117.57, for a total transaction of $912,695.91. Following the sale, the insider owned 2,295 shares in the company, valued at approximately $269,823.15. The trade was 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 90 days. Insiders own 5.90% of the company’s stock.

Hedge Funds Weigh In On Rhythm Pharmaceuticals

Hedge funds have recently added to or reduced their stakes in the company. GAMMA Investing LLC lifted its stake in Rhythm Pharmaceuticals by 36.3% during the 2nd quarter. GAMMA Investing LLC now owns 364 shares of the company’s stock valued at $40,000 after acquiring an additional 97 shares during the period. Global Retirement Partners LLC bought a new stake in shares of Rhythm Pharmaceuticals in the second quarter worth approximately $51,000. EverSource Wealth Advisors LLC grew its stake in shares of Rhythm Pharmaceuticals by 106.4% in the first quarter. EverSource Wealth Advisors LLC now owns 549 shares of the company’s stock worth $48,000 after acquiring an additional 283 shares during the period. Pinnacle Wealth Planning Services Inc. raised its holdings in shares of Rhythm Pharmaceuticals by 894.0% during the third quarter. Pinnacle Wealth Planning Services Inc. now owns 666 shares of the company’s stock valued at $63,000 after purchasing an additional 599 shares during the last quarter. Finally, Nisa Investment Advisors LLC raised its holdings in shares of Rhythm Pharmaceuticals by 9.1% during the third quarter. Nisa Investment Advisors LLC now owns 1,630 shares of the company’s stock valued at $155,000 after purchasing an additional 136 shares during the last quarter.

Rhythm Pharmaceuticals News Summary

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

• Positive Sentiment: Rhythm reported a third-quarter loss of $0.61 per share, better than the consensus loss estimate of $0.68–$0.71 and an improvement from a $0.82 loss a year earlier. Rhythm Pharmaceuticals Reports Q3 Loss, Beats Revenue Estimates
• Positive Sentiment: Revenue reached $92.1 million, exceeding expectations of approximately $85.6 million and rising 79.6% year over year. IMCIVREE revenue increased 29% from the prior quarter, supported by more than 700 U.S. patient start forms for acquired hypothalamic obesity as of September 30. Rhythm Pharmaceuticals Third-Quarter Results and Business Update
• Positive Sentiment: The company has begun the commercial launch of IMCIVREE in Japan and plans to advance bivamelagon into pivotal development for Prader-Willi syndrome, providing additional potential growth drivers. Rhythm Pharmaceuticals Business Update
• Positive Sentiment: Rhythm amended its LG Chem license agreement to reduce royalties on global net sales of its MC4R agonists—including setmelanotide, bivamelagon and RM-718—to 1% from the previous low-to-mid-single-digit structure. It also secured access to up to $750 million in financing for its obesity pipeline. Rhythm and LG Chem License Amendment
• Neutral Sentiment: The revised agreement requires Rhythm to make an additional $350 million in fixed payments to LG Chem over four years, increasing near-term cash commitments despite the lower royalty rate. Rhythm Revises LG Chem Deal and Secures Financing
• Negative Sentiment: Rhythm remains unprofitable, with an $85.59% negative net margin and analysts expecting a full-year loss. Investors may be concerned that funding pipeline expansion will require substantial financing while the company continues to generate losses.

About Rhythm Pharmaceuticals

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.