Insider Sell: Rhythm Pharmaceuticals Inc (RYTM) CEO David Meeker Disposes of 45,494 Shares
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 President and CEO of the company, David Meeker, sold 45,494 shares of the company on March 19, 2024. The transaction was disclosed in an SEC Filing.
Over the past year, the insider has sold a total of 49,855 shares and has not made any purchases of the company's stock. This latest transaction continues a trend of insider sells at Rhythm Pharmaceuticals Inc, with a total of 29 insider sells and no insider buys occurring over the past year.
On the date of the reported sell, shares of Rhythm Pharmaceuticals Inc were trading at $39.22, giving the company a market capitalization of $2.352 billion. The stock's price on that day reflects a significant discount when compared to the GuruFocus Value (GF Value) of $134.79, resulting in a price-to-GF-Value ratio of 0.29. This valuation suggests that the stock may be categorized as a Possible Value Trap, and investors should think twice before making an investment decision.
The GF Value is a proprietary valuation metric developed by GuruFocus, which 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. It also includes an adjustment factor based on the company's historical returns and growth, as well as future business performance estimates provided by Morningstar analysts.
The insider trend image above illustrates the pattern of insider transactions over the past year, highlighting the prevalence of insider selling at Rhythm Pharmaceuticals Inc.
The GF Value image provides a visual representation of the stock's current price in relation to its intrinsic value, as estimated by GuruFocus.
Investors and analysts often monitor insider selling as it can provide insights into an insider's perspective on the value of the company's stock. However, it is important to consider a wide range of factors when evaluating insider transactions and to conduct thorough research before making investment decisions.
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.
