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Rhythm Pharmaceuticals: Unexpected Surge Raises Interest

Bryce TuoheyAvatar
Written by Bryce Tuohey
Updated 7/9/2025, 2:32 pm ET 5 min read

Rhythm Pharmaceuticals Inc.’s stocks have been trading up by 35.25 percent following promising FDA approvals and trial results.

Market Developments

  • Leerink’s coverage initiation with an ‘Outperform’ rating suggests a positive outlook for Rhythm Pharmaceuticals, pinpointing a price target of $88.
  • The scheduling of clinical trial results for bivamelagon, aimed at treating acquired hypothalamic obesity, hints at potential market breakthroughs ahead.
  • The anticipation of trial outcomes on July 09, 2025, fuels market excitement as investors await insights on treatment efficacy and safety.

Candlestick Chart

Live Update At 14:32:14 EST: On Wednesday, July 09, 2025 Rhythm Pharmaceuticals Inc. stock [NASDAQ: RYTM] is trending up by 35.25%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Performance Overview

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.” For traders, understanding this principle can dramatically shift the focus from short-term gains to long-term success. This mindset encourages meticulous risk management, allowing traders to focus on consistent progress rather than immediate profits. By prioritizing the protection of capital and maintaining steady momentum in trading, individuals stand a better chance of weathering market volatility and securing sustainable growth in their trading endeavors.

Rhythm Pharmaceuticals Inc. recently released its financial results with some key figures catching the eye. The company reported a revenue of about $130M, an indication of growth in its operations. Still, the challenging aspect continues to be profitability, exemplified by a negative EBIT margin of -115.8. Despite the revenue performance, the earnings report showed an overall net loss due to high operating expenses and research costs.

More Breaking News

The substantial R&D investment is notable, with over $36M spent in the area, signifying a commitment to innovation, particularly in treatments like bivamelagon. However, this has contributed to a widening of net losses, which stand at nearly $50M. While the operating cash flow is in negative territory, there are signs of financial prudence, with a positive change in cash flow from financing activities, thanks largely to common stock issuance raising significant capital.

Growth Insights and Market Reactions

In the world of pharma, Read oversimplifying the recent developments involving Rhythm Pharmaceuticals would not do justice to the complexities at play. A key catalyst is the anticipation surrounding the Phase 2 trial results for bivamelagon. As it’s a novel treatment approach for hypothalamic obesity, the results due on July 09 are a focal point for the market.

Such trials are vital not just scientifically but financially; they determine the potential market viability of new drugs. Positive outcomes could translate into lucrative opportunities for Rhythm Pharmaceuticals and increase traction around its stock. With Leerink backing the stock with an ‘Outperform’ rating, it strengthens the case for continued upward momentum. Analyst endorsements are potent market movers, adding credibility and often sparking investor interest.

Rhythm’s ability to leverage this trial outcome could shape its medium-term market performance. Especially as healthcare investors, keenly eye new treatments that promise tangible health outcomes but also tantalize with robust business cases.

The Road Ahead and Implications

Will Rhythm Pharmaceuticals sustain its recent market trajectory? It partly hinges on clinical successes translating into viable products and market adoption. With a mean price target hovering close to $84 but some predictions pegging it at $88, trader sentiment varies but retains an optimistic tilt.

On a broader scale, Rhythm Pharmaceuticals’ persistent losses underscore the nuanced challenges faced by pharmaceutical companies in balancing innovation with economic sustainability. Still, a revenue exceeding $130M shows growth potential, driven by the backing of traders securing more capital through equity offerings.

Investment in R&D is a double-edged sword. While it depletes cash flow and sharpens quarterly losses, it simultaneously lays the groundwork for future breakthroughs and market leadership. So, while Rhythm’s stock trajectory partially hinges on the bivamelagon outcomes, its long-term journey will likely encompass how well it balances these strategic investments.

Trading these stocks requires a keen sense of timing and strategy. As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” In this sense, the market’s embrace of the company’s present hurdles, juxtaposed against a landscape of possibilities embedded in untapped treatment sectors, crafts a rich narrative, fusing the pragmatic with the potential. The imminent trial results could indeed herald fresh market paradigms — pivotal days lie ahead.

With clinical milestones approaching and market buzz intensifying, Rhythm Pharmaceuticals stands at the cusp of potentially reshaping patient lives, carving its niche in the competitive pharmaceutical arena.

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.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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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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