Deutsche Bank Reduces Stake in Rhythm Pharmaceuticals by Over 10%

Deutsche Bank AG has reduced its stake in Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) by 10.2% during the first quarter of 2023. According to its recent 13F filing with the U.S. Securities and Exchange Commission (SEC), the bank now holds 43,779 shares of Rhythm Pharmaceuticals, down from 48,745 shares after selling 4,966 shares in the period. This reduction means Deutsche Bank owns approximately 0.07% of the company, valued at around $2.32 million.

In addition to Deutsche Bank, several other institutional investors have adjusted their positions in Rhythm Pharmaceuticals. For instance, Victory Capital Management Inc. increased its holdings by 1.0%, acquiring an additional 174 shares to reach a total of 17,326 shares, valued at $918,000. Xponance Inc. also raised its stake by 4.7%, now holding 4,365 shares worth $231,000 after purchasing 197 shares.

Principal Financial Group Inc. and GF Fund Management CO. LTD. have similarly boosted their stakes. Principal Financial Group increased its holdings by 0.7%, now owning 37,156 shares valued at $1.97 million, while GF Fund Management expanded its position by 21.9%, acquiring 283 shares to hold a total of 1,573 shares valued at $83,000. Furthermore, Two Sigma Advisers LP raised its holdings in Rhythm Pharmaceuticals by 2.3% in the fourth quarter of 2022.

Market Performance and Earnings Results

On Thursday, shares of Rhythm Pharmaceuticals opened at $98.70. The company has seen considerable fluctuations, with a 50-day moving average of $80.36 and a 200-day moving average of $65.85. Currently, the firm boasts a market capitalization of $6.56 billion, a P/E ratio of -32.79, and a beta of 2.38. Over the past twelve months, the stock has ranged from a low of $43.57 to a high of $99.04.

Rhythm Pharmaceuticals recently announced its quarterly earnings, reporting a loss of $0.75 per share for the second quarter of 2023. This figure fell short of analysts’ consensus estimates of $0.66 by $0.09. The company’s revenue for the quarter reached $48.50 million, exceeding estimates of $43.72 million. Notably, revenue increased by 66.8% compared to the same quarter last year, despite experiencing a negative return on equity of -1,831.43% and a negative net margin of -117.13%.

Analysts project that Rhythm Pharmaceuticals will report an earnings per share (EPS) of -4.32 for the current fiscal year.

Insider Transactions and Analyst Ratings

In related developments, insider Pamela J. Cramer sold 1,520 shares on July 29, 2023, at an average price of $85.93, totaling $130,613.60. Following this transaction, she holds 20,814 shares valued at approximately $1.79 million. Additionally, Chief Accounting Officer Christopher Paul German sold 1,500 shares on August 12, 2023, at an average price of $95.00, bringing in $142,500.00. Insiders have sold a total of 114,989 shares worth $9.56 million over the last three months, with company insiders owning 6.10% of the stock.

Several research analysts have also reviewed Rhythm Pharmaceuticals recently. Morgan Stanley reiterated an “overweight” rating with a target price of $109.00, raised from $100.00. Leerink Partners upgraded the stock to a “strong-buy” rating, while Guggenheim increased their target price from $119.00 to $120.00. Bank of America and Wells Fargo & Company also adjusted their target prices upward, with Wells Fargo setting a new target of $129.00. Currently, one analyst has given the stock a “Strong Buy” rating, and fourteen have rated it as a “Buy,” leading to an average rating of “Buy” and an average target price of $101.57 according to MarketBeat.com.

Rhythm Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company that specializes in rare neuroendocrine diseases. Its primary product candidate is IMCIVREE (setmelanotide), which targets conditions such as pro-opiomelanocortin (POMC) deficiency obesity, leptin receptor (LEPR) deficiency obesity, and syndromes like Bardet-Biedl and Alström.