Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) Chief Financial Officer Hunter C. Smith has sold a total of 15,515 shares of common stock, with the transactions valued at over $600,000. The sales took place on March 19, 2024, and were executed at a weighted average price of $39.22 per share. The price range for these transactions was between $39.04 and $39.22.
The sale by Smith was carried out under a prearranged trading plan, known as a Rule 10b5-1 plan, which was adopted on February 27, 2023. The primary purpose of this sale was to cover withholding taxes associated with the vesting of certain restricted stock units that had been previously reported.
Following the transaction, Smith still holds 97,939 shares of Rhythm Pharmaceuticals. The company, headquartered in Boston, Massachusetts, is in the pharmaceutical preparations industry and focuses on developing therapies for the treatment of rare genetic disorders of obesity.
Investors and security holders may request additional details from Smith regarding the specific prices at which the shares were sold within the reported range.
InvestingPro Insights
Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) has been navigating a dynamic market landscape, as reflected in the company's recent financial metrics and stock performance. With a market capitalization of approximately $2.35 billion, RYTM's financial health and stock valuation are key areas of interest for investors, especially in light of the CFO's recent stock sale.
The company boasts an impressive gross profit margin of 87.99% for the last twelve months as of Q4 2023. This indicates that RYTM has been effective in controlling the costs associated with their goods sold, which is a positive sign for potential investors. Despite this strong gross profit margin, the company is not expected to be profitable this year, as indicated by an InvestingPro Tip. This is further substantiated by a negative P/E ratio of -12.74, reinforcing the notion that profitability is a challenge for RYTM at this juncture.
Additionally, the stock's volatility is noteworthy, with a significant six-month price total return of 62.8%, yet a substantial one-month price total return decline of -20.34%. This volatility is a critical factor for investors to consider, especially those looking for stable investments. The company's stock is currently trading at 74.42% of its 52-week high, with a previous close at $40.6.
For those interested in a deeper analysis of Rhythm Pharmaceuticals, there are additional InvestingPro Tips available. These include insights on earnings revisions, net income expectations, and the company's debt levels. Investors can access a wealth of detailed metrics and tips on InvestingPro, with a total of 13 additional InvestingPro Tips to help guide their investment decisions. To enhance your research experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
It's important for investors to consider these factors in the context of the CFO's stock transactions and the company's current financial position. RYTM's next earnings date is set for April 30, 2024, which will be a critical time for investors to assess the company's performance and future outlook.
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