Market Analysts see Rhythm Pharmaceuticals Inc. [RYTM] gaining to $28. Time to buy?

Rhythm Pharmaceuticals Inc. [NASDAQ: RYTM] traded at a low on 09/15/22, posting a -24.44 loss after which it closed the day’ session at $23.31. The company report on September 14, 2022 that Rhythm Pharmaceuticals, Inc. Announces Pricing of Public Offering.

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Rhythm Pharmaceuticals, Inc. (Nasdaq: RYTM) (“Rhythm”), a commercial-stage biopharmaceutical company focused on transforming the lives of patients and their families living with hyperphagia and severe obesity caused by rare melanocortin-4 receptor pathway (MC4R) diseases, today announced the pricing of its public offering of 4,800,000 shares of its common stock at a public offering price of $26.00 per share. All of the shares are being offered by Rhythm. In addition, Rhythm has granted the underwriters a 30-day option to purchase up to an additional 720,000 shares of its common stock at the public offering price, less the underwriting discount and commission. The offering is expected to close on September 19, 2022, subject to the satisfaction of customary closing conditions.

Cowen, Stifel and Wells Fargo Securities are acting as joint book-running managers for the offering. Ladenburg Thalmann is acting as manager for the offering.

The results of the trading session contributed to over 7399111 shares changing hands. Over the past one week, the price volatility of Rhythm Pharmaceuticals Inc. stands at 18.09% while the volatility over the past one month is 12.82%.

The market cap for RYTM stock reached $1.04 billion, with 50.72 million shares outstanding and 50.54 million shares in the current float. Compared to the average trading volume of 2.58M shares, RYTM reached a trading volume of 7399111 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Rhythm Pharmaceuticals Inc. [RYTM]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RYTM shares is $30.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RYTM stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Goldman have made an estimate for Rhythm Pharmaceuticals Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on August 08, 2022. While these analysts kept the previous recommendation, BofA Securities dropped their target price from $8 to $20. The new note on the price target was released on August 05, 2022, representing the official price target for Rhythm Pharmaceuticals Inc. stock. Previously, the target price had yet another drop from $40 to $25, while Needham kept a Buy rating on RYTM stock.

The Average True Range (ATR) for Rhythm Pharmaceuticals Inc. is set at 3.48, with the Price to Sales ratio for RYTM stock in the period of the last 12 months amounting to 77.69. The Price to Book ratio for the last quarter was 6.01, with the Price to Cash per share for the same quarter was set at 5.28.

How has RYTM stock performed recently?

Rhythm Pharmaceuticals Inc. [RYTM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.31. With this latest performance, RYTM shares dropped by -6.12% in over the last four-week period, additionally plugging by 119.70% over the last 6 months – not to mention a rise of 85.29% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for RYTM stock in for the last two-week period is set at 51.27, with the RSI for the last a single of trading hit 48.29, and the three-weeks RSI is set at 53.67 for Rhythm Pharmaceuticals Inc. [RYTM]. The present Moving Average for the last 50 days of trading for this stock 18.38, while it was recorded at 25.74 for the last single week of trading, and 10.26 for the last 200 days.

Rhythm Pharmaceuticals Inc. [RYTM]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Rhythm Pharmaceuticals Inc. [RYTM] shares currently have an operating margin of -5391.85 and a Gross Margin at +55.14. Rhythm Pharmaceuticals Inc.’s Net Margin is presently recorded at -2207.10.

Return on Equity for this stock declined to -30.89, with Return on Assets sitting at -26.95.

Rhythm Pharmaceuticals Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 5.60 and a Current Ratio set at 5.60.

Earnings analysis for Rhythm Pharmaceuticals Inc. [RYTM]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for RYTM. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Rhythm Pharmaceuticals Inc. go to -9.00%.

Insider trade positions for Rhythm Pharmaceuticals Inc. [RYTM]

There are presently around $1,072 million, or 93.60% of RYTM stock, in the hands of institutional investors. The top three institutional holders of RYTM stocks are: PRIMECAP MANAGEMENT CO/CA/ with ownership of 6,364,094, which is approximately 1.146% of the company’s market cap and around 0.10% of the total institutional ownership; NEA MANAGEMENT COMPANY, LLC, holding 4,912,306 shares of the stock with an approximate value of $114.51 million in RYTM stocks shares; and RA CAPITAL MANAGEMENT, L.P., currently with $113.55 million in RYTM stock with ownership of nearly 0% of the company’s market capitalization.

Positions in Rhythm Pharmaceuticals Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 43 institutional holders increased their position in Rhythm Pharmaceuticals Inc. [NASDAQ:RYTM] by around 3,959,560 shares. Additionally, 70 investors decreased positions by around 6,827,480 shares, while 18 investors held positions by with 35,219,938 shares. The mentioned changes placed institutional holdings at 46,006,978 shares, according to the latest SEC report filing. RYTM stock had 21 new institutional investments in for a total of 2,862,425 shares, while 38 institutional investors sold positions of 914,977 shares during the same period.


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