In a recent transaction on March 19, Yann Mazabraud, EVP and Head of International at Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM), sold 16,000 shares of the company\'s common stock. The total value of the stock sold amounted to $627,520, with the shares being sold at a weighted average price of $39.22. The price range for these transactions varied from $39.10 to $39.22 per share.
The sale was conducted under a Rule 10b5-1 trading plan, which was established on February 27, 2023, for the purpose of covering withholding taxes related to the vesting of certain restricted stock units. Rule 10b5-1 plans allow company insiders to set up predetermined trading plans for selling stocks at a time when they are not in possession of material non-public information.
Following the sale, Mazabraud\'s direct ownership in Rhythm Pharmaceuticals stands at 24,495 shares. The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, with full details available upon request for those interested in the specific prices at which the shares were sold within the given range.
Rhythm Pharmaceuticals, based in Boston, MA, specializes in pharmaceutical preparations and continues to be a key player in the biotech industry. Investors often monitor insider transactions as they can provide insights into an executive\'s confidence in the company\'s prospects.
Pro Insights
In the context of the recent insider trading activity at Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM), evaluating the company\'s financial health and market performance is crucial for investors seeking to understand the broader picture. According to Pro data, Rhythm Pharmaceuticals has a market capitalization of $2.35 billion. Despite the impressive gross profit margin of 87.99% in the last twelve months as of Q4 2023, the company\'s net income is expected to drop this year, and analysts do not anticipate the company will be profitable this year. This aligns with the reported operating income margin of -238.1% and a negative return on assets of -51.64% for the same period.
Pro Tips highlight that the stock price movements are quite volatile, with a 6-month price total return of 62.8%, but a 1-month price total return of -20.34%. Moreover, the stock has experienced a large price uptick over the last six months, yet it has fared poorly over the last month, indicating potential uncertainty in the near term. These metrics suggest a level of caution for investors considering the company\'s stock. It is also worth noting that Rhythm Pharmaceuticals does not pay a dividend to shareholders, which could influence the investment decisions of income-focused investors.
For those looking for a more in-depth analysis, there are additional Pro Tips available, which can be accessed at /pro/RYTM. To get an even better understanding of Rhythm Pharmaceuticals\' financials and market performance, interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at Pro, where a total of 14 Pro Tips await to guide your investment strategy.
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