Insider Sell: CFO Hunter Smith Sells 15,515 Shares of Rhythm Pharmaceuticals Inc (RYTM)
Rhythm Pharmaceuticals Inc (NASDAQ:RYTM), a biopharmaceutical company focused on the development and commercialization of therapies for the treatment of rare genetic disorders of obesity, has reported an insider sell according to a recent SEC filing. The company's Chief Financial Officer (CFO), Hunter Smith, sold 15,515 shares of the company on March 19, 2024.According to the filing, the transaction was executed at an average price of $39.22 per share, resulting in a total sale amount of approximately $608,338.30. This sale has contributed to the insider's total sales over the past year, which amount to 69,049 shares. Notably, Hunter Smith has not made any stock purchases in the company during the same period.The insider transaction history for Rhythm Pharmaceuticals Inc reveals a pattern of insider selling, with 29 insider sells and no insider buys over the past year.
On the valuation front, Rhythm Pharmaceuticals Inc's shares were trading at $39.22 on the day of the insider's recent sale, giving the company a market capitalization of approximately $2.35 billion.The stock's price-to-GF-Value ratio stands at 0.29, with a GF Value of $134.79. This valuation suggests that Rhythm Pharmaceuticals Inc is categorized as a "Possible Value Trap, Think Twice" according to GuruFocus's metrics.
The GF Value is determined by considering historical trading multiples such as the price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow. Additionally, a GuruFocus adjustment factor is applied based on the company's historical returns and growth, along with future business performance estimates provided by Morningstar analysts.Investors and stakeholders in Rhythm Pharmaceuticals Inc may consider these insider trading trends and valuation metrics as part of their overall assessment of the company's stock performance and future prospects.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
