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Rhythm Pharmaceuticals Faces Rising Prospects Amidst Clinical Trials

Ellis HobbsAvatar
Written by Ellis Hobbs
Updated 7/9/2025, 11:33 am ET 4 min read

Rhythm Pharmaceuticals Inc. stocks have been trading up by 34.36% after breaking news on promising FDA designations.

Key Takeaways

  • Leerink, a financial institution, has started coverage with an ‘Outperform’ grade and set a price target above average market expectations.
  • Upcoming July conference call will spotlight the Phase 2 trial results of bivamelagon, focusing on its effectiveness in treating hypothalamic obesity.
  • Bivamelagon trials aim to assess impacts on weight, safety, hunger, and life quality in participants.
  • Positive trial results may significantly impact investor confidence and stock performance.

Candlestick Chart

Live Update At 11:32:26 EST: On Wednesday, July 09, 2025 Rhythm Pharmaceuticals Inc. stock [NASDAQ: RYTM] is trending up by 34.36%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Rhythm Pharmaceuticals has seen its stock prices experiencing dramatic fluctuations recently. In just the past few days, its prices varied widely, hitting a high of $87.55 on Jul 9, 2025, before experiencing earlier lows around $62. Despite this volatility, the company is rated with a strong market valuation of around $3.94B and maintains a current ratio of 3.3, reflecting good short-term financial health.

More Breaking News

Their financials, however, paint a nuanced picture. The company shows a concerning ebitdamargin at -116.2% but boasts a 30.86 price-to-sales ratio, suggesting market interest despite negative earnings margins. The reported net income for Q1 2025 reflects a significant loss, indicating room for profitability improvement. Despite negative returns on equity and assets, their gross margin stands favorably at 89.6%, hinting at high operational efficiency amidst other financial challenges.

Potential Market Impacts

The unveiling of bivamelagon trial outcomes can set the tone for Rhythm’s near-term market trajectory. Investors are keenly awaiting results, which could affect stock prices based on how the drug performs in improving patient health conditions. As Rhythm gears for the announcement, analyst projections of exceeding a shared price target signal optimism. This anticipates that the trial’s success may provide leverage in captivating investor interest and potentially reversing negative financial metrics.

Leerink’s initiation of coverage suggests renewed investor interest. Historically, coverage by prominent investors could serve as a catalyst for stock performance rebounds. An outperform rating not only captures current investor sentiment but also marks a pivotal moment for Rhythm, especially when paired with strategic innovations like bivamelagon.

Conclusion

Rhythm Pharmaceuticals stands on the cusp of substantial market shifts. Leerink’s endorsement and upcoming trial results for bivamelagon are dual pillars poised to influence future stock behavior significantly. As traders digest these developments, the momentum teased by these events could redefine Rhythm’s stance in the pharma landscape. As millionaire penny stock trader and teacher Tim Sykes says, “The goal is not to win every trade but to protect your capital and keep moving forward.” This mindset will be important for traders who are tracking these developments.

In conclusion, the forthcoming days remain crucial for Rhythm Pharmaceuticals, with its potential breakthroughs steering both trader confidence and financial prognosis. The unfolding narratives around their strategic initiatives might well play a transformative role in Rhythm’s financial journey.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Ellis Hobbs

Trainer and Mentor on Tim Sykes’ Trading Challenge
He teaches webinars on Tim Sykes’ Trading Challenge He treats trading like a business, not a hobby He emphasizes taking small risks — “If you get the process right, money is a forgone conclusion.”
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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