Rhythm Pharmaceuticals Inc. (NASDAQ: RYTM): Stock That Needs Special Handling


Janus Capital Management LLC recently announced the acquisition of new stake in Rhythm Pharmaceuticals Inc. (NASDAQ:RYTM). The institutional investor has increased its shareholding in the Healthcare company by 2.12% to 4.41 million shares with purchase of 91455.0 shares. This fresh investment now brings its stake to 10.00% valued currently at $84.77 million. In addition, PRIMECAP Management Co. raised its holdings by 2200.0 to 3.54 million shares. And BlackRock Fund Advisors has lifted its position by 10.97% or 0.25 million shares – to 2.54 million shares.

With over 1.22 million Rhythm Pharmaceuticals Inc. (RYTM) shares trading Friday and a closing price of $26.97 on the day, the dollar volume was approximately $32.98 million. The shares have shown a positive weekly performance of 46.02% and its price on 08/28/20 gained nearly 16.80%. Currently, there are 44.10M common shares owned by the public and among those 41.16M shares have been available to trade.

The analysts have set the share’s price value over the next 12 months at a high of $43.00 and a low of $18.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Rhythm Pharmaceuticals Inc. stock is 1.70 for the next 12 months. The average price target is 17.97% above its last price level and an upside to the estimated low will see the stock lose -49.83% over that period. But an upside of 37.28% will see the stock hit the forecast high price target while mean target price for the stock is $31.00.

Insiders at the company have transacted a total of 58 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 8 of these insider trades were purchases, accounting for 106,661 shares. Insider sales of the common stock occurred on 50 occasions, with total insider shares sold totaling 1,291,999 shares.

The top 3 mutual fund holders in Rhythm Pharmaceuticals Inc. are PRIMECAP Odyssey Aggressive Growt, Janus Henderson Global Life Scien, and Federated Hermes Kaufmann Small C. PRIMECAP Odyssey Aggressive Growt owns 3.41 million shares of the company’s stock, all valued at over $65.63 million. Janus Henderson Global Life Scien sold 23510.0 shares to see its total holdings shrink to 1.31 million shares valued at over $25.24 million and representing 2.98% of the shares outstanding. Federated Hermes Kaufmann Small C now owns shares totaling to 2.78% of the shares outstanding.

Shares of Rhythm Pharmaceuticals Inc. (NASDAQ: RYTM) opened at $24.206, up $1.12 from a prior closing price of $23.09. However, the script later closed the day at $26.97, up 16.80%. The company’s stock has a 5-day price change of 46.02% and 36.21% over the past three months. RYTM shares are trading 17.47% year to date (YTD), with the 12-month market performance up to 19.44% higher. It has a 12-month low price of $12.99 and touched a high of $25.86 over the same period. Currently, 1.22 million shares have been traded, compared to an average intraday trading volume of 200.17K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 42.28%, 29.34%, and 36.43% respectively.

Institutional ownership of Rhythm Pharmaceuticals Inc. (NASDAQ: RYTM) shares accounts for 95.80% of the company’s 44.10M shares outstanding. Mutual fund holders own 39.77%, while other institutional holders and individual stakeholders account for 62.87% and 38.20% respectively.

It has a market capitalization of $1.02B. The earnings-per-share (ttm) stands at -$3.30. Price movements for the stock have been influenced by the stock’s volatility, which stands at 8.86% over the week and 5.78% over the month.

Analysts forecast that Rhythm Pharmaceuticals Inc. (RYTM) will achieve an EPS of -$0.84 for the current quarter, -$0.71 for the next quarter and -$2.63 for 2021. The lowest estimate earnings-per-share for the quarter is -$1.02 while analysts give the company a high EPS estimate of -$0.74. Comparatively, EPS for the current quarter was -$1.04 a year ago. Earnings per share for the fiscal year are expected to decrease by -61.70%, and 13.20% over the next financial year.

Looking at the support for the RYTM, a number of firms have released research notes about the stock. Goldman stated their Sell rating for the stock in a research note on January 08, 2020, with the firm’s price target at $18. Stifel coverage for the Rhythm Pharmaceuticals Inc. (RYTM) stock in a research note released on July 12, 2019 offered a Buy rating with a price target of $34. Canaccord Genuity was of a view on July 08, 2019 that the stock is Buy, while Ladenburg Thalmann gave the stock Buy rating on March 13, 2019, issuing a price target of $43. Morgan Stanley on their part issued Overweight rating on September 07, 2018.


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