Rhythm Pharmaceuticals Inc. (NASDAQ: RYTM) stock jumped 1.22% on Friday to $24.96 against a previous-day closing price of $24.66. With 2.3 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.81 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $25.35 whereas the lowest price it dropped to was $24.29. The 52-week range on RYTM shows that it touched its highest point at $34.99 and its lowest point at $15.50 during that stretch. It currently has a 1-year price target of $38.22. Beta for the stock currently stands at 1.62.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RYTM was up-trending over the past week, with a rise of 0.24%, but this was down by -1.96% over a month. Three-month performance surged to 36.54% while six-month performance rose 38.28%. The stock lost -19.09% in the past year, while it has lost -14.29% so far this year. A look at the trailing 12-month EPS for RYTM yields -3.29 with Next year EPS estimates of -2.29. For the next quarter, that number is -0.75. This implies an EPS growth rate of -147.60% for this year and 29.30% for next year. EPS is expected to decline by -9.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -4.20%.
Float and Shares Shorts:
At present, 56.87 million RYTM shares are outstanding with a float of 56.66 million shares on hand for trading. On Aug 30, 2023, short shares totaled 10.65 million, which was 18.08% higher than short shares on Jul 30, 2023. In addition to Dr. David P. Meeker M.D. as the firm’s Chairman, Pres & CEO, Mr. Hunter C. Smith M.B.A. serves as its CFO & Treasurer.
Through their ownership of 108.16% of RYTM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 59.59% of RYTM, in contrast to 55.50% held by mutual funds. Shares owned by individuals account for 51.05%. As the largest shareholder in RYTM with 14.59% of the stake, PRIMECAP Management Co. holds 8,299,317 shares worth 8,299,317. A second-largest stockholder of RYTM, Baker Bros. Advisors LP, holds 6,498,267 shares, controlling over 11.42% of the firm’s shares. RA Capital Management LP is the third largest shareholder in RYTM, holding 5,676,067 shares or 9.98% stake. With a 9.48% stake in RYTM, the PRIMECAP Odyssey Aggressive Growt is the largest stakeholder. A total of 5,393,780 shares are owned by the mutual fund manager. The PRIMECAP Odyssey Growth Fund, which owns about 4.48% of RYTM stock, is the second-largest Mutual Fund holder. It holds 2,550,458 shares valued at 66.34 million. Polar Capital Funds Plc – Biotech holds 3.95% of the stake in RYTM, owning 2,250,000 shares worth 58.52 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, RYTM reported revenue of $9.07M and operating income of -$45.10M. The EBITDA in the recently reported quarter was -$45.10M and diluted EPS was -$0.89.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RYTM since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With RYTM analysts setting a high price target of $52.00 and a low target of $27.00, the average target price over the next 12 months is $38.22. Based on these targets, RYTM could surge 108.33% to reach the target high and rise by 8.17% to reach the target low. Reaching the average price target will result in a growth of 53.12% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded RYTM stock several times over the past three months with 3 Buys and 3 Sells. In these transactions, 13,434 shares were bought while 13,871 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 21 over the past year. The total number of shares bought during that period was 49,927 while 34,126 shares were sold.