Rhythm Pharmaceuticals (NASDAQ:RYTM) Stock Price Down 3.3% – Should You Sell?

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) fell 3.3% on Tuesday . The stock traded as low as $109.31 and last traded at $108.8750. 248,322 shares were traded during mid-day trading, a decline of 64% from the average session volume of 680,928 shares. The stock had previously closed at $112.55.

Analyst Upgrades and Downgrades

RYTM has been the subject of several research reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rhythm Pharmaceuticals in a report on Wednesday, October 8th. Needham & Company LLC raised their target price on shares of Rhythm Pharmaceuticals from $120.00 to $145.00 and gave the stock a “buy” rating in a research note on Thursday, December 11th. Wall Street Zen cut shares of Rhythm Pharmaceuticals from a “hold” rating to a “sell” rating in a report on Saturday, November 8th. Cowen restated a “buy” rating on shares of Rhythm Pharmaceuticals in a research report on Thursday, December 11th. Finally, JMP Securities upped their target price on Rhythm Pharmaceuticals from $135.00 to $142.00 and gave the company a “market outperform” rating in a research report on Thursday, September 25th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $126.47.

Rhythm Pharmaceuticals Trading Down 5.0%

The stock has a market capitalization of $7.14 billion, a price-to-earnings ratio of -34.45 and a beta of 1.96. The company’s 50-day simple moving average is $107.01 and its 200-day simple moving average is $96.15.

Rhythm Pharmaceuticals (NASDAQ:RYTM) last released 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). Rhythm Pharmaceuticals had a negative net margin of 110.32% and a negative return on equity of 433.21%. The firm had revenue of $51.30 million for the quarter, compared to analyst estimates of $50.71 million. On average, equities research analysts expect that Rhythm Pharmaceuticals, Inc. will post -4.32 earnings per share for the current fiscal 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 that occurred on Thursday, October 30th. The stock was sold at an average price of $115.24, for a total value of $1,123,359.52. Following the transaction, the insider owned 8,509 shares in the company, valued at $980,577.16. The trade was a 53.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Pamela J. Cramer sold 3,350 shares of the stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $111.00, for a total transaction of $371,850.00. Following the transaction, the insider directly owned 20,814 shares of the company’s stock, valued at $2,310,354. This 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 three months, insiders sold 30,350 shares of company stock valued at $3,436,340. 6.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Trexquant Investment LP increased its stake in shares of Rhythm Pharmaceuticals by 396.6% in the first quarter. Trexquant Investment LP now owns 38,724 shares of the company’s stock worth $2,051,000 after buying an additional 30,926 shares during the period. Panagora Asset Management Inc. bought a new position in Rhythm Pharmaceuticals in the first quarter worth about $7,477,000. Cubist Systematic Strategies LLC purchased a new stake in Rhythm Pharmaceuticals in the first quarter worth about $9,207,000. PDT Partners LLC boosted its position in Rhythm Pharmaceuticals by 134.5% during the 1st quarter. PDT Partners LLC now owns 102,195 shares of the company’s stock valued at $5,413,000 after acquiring an additional 58,612 shares in the last quarter. Finally, ADAR1 Capital Management LLC grew its holdings in shares of Rhythm Pharmaceuticals by 19.2% during the 1st quarter. ADAR1 Capital Management LLC now owns 36,890 shares of the company’s stock worth $1,954,000 after acquiring an additional 5,949 shares during the period.

About Rhythm Pharmaceuticals

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.