Stephens Issues Pessimistic Forecast for iRhythm Technologies (NASDAQ:IRTC) Stock Price

Key Points

• Stephens cut its price target on iRhythm Technologies from $160 to $120 but maintained an “overweight” rating; the new target implies 39.44% upside from the stock’s current price.
• Several other analysts also lowered their targets, though the consensus remains “Moderate Buy,” with an average price target of $164.07.
• In its latest quarter, iRhythm reported EPS of $0.82, beating the $0.02 consensus estimate, while revenue of $221.59 million came in slightly below expectations and grew 14.9% year over year.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) had its price objective reduced by equities research analysts at Stephens from $160.00 to $120.00 in a report issued on Wednesday, Benzinga reports. The firm presently has an "overweight" rating on the stock. Stephens's target price would indicate a potential upside of 39.44% from the stock's current price.

Several other research firms have also recently weighed in on IRTC. JPMorgan Chase & Co. reduced their price target on iRhythm Technologies from $175.00 to $145.00 and set an "overweight" rating on the stock in a report on Friday, November 6th. Wall Street Zen lowered shares of iRhythm Technologies from a "buy" rating to a "hold" rating in a report on Saturday, October 10th. Piper Sandler cut their target price on shares of iRhythm Technologies from $160.00 to $150.00 and set an "overweight" rating on the stock in a research report on Friday, November 6th. BTIG Research cut their target price on shares of iRhythm Technologies from $185.00 to $170.00 and set a "buy" rating on the stock in a research report on Friday, November 6th. Finally, Citigroup lowered shares of iRhythm Technologies from a "buy" rating to a "neutral" rating and reduced their target price for the stock from $157.00 to $124.00 in a report on Friday, November 6th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, iRhythm Technologies has a consensus rating of "Moderate Buy" and an average target price of $164.07.

iRhythm Technologies Stock Performance

NASDAQ:IRTC opened at $86.06 on Wednesday. iRhythm Technologies has a twelve month low of $82.85 and a twelve month high of $192.47. The company has a quick ratio of 3.45, a current ratio of 3.57 and a debt-to-equity ratio of 3.68. The stock's 50-day simple moving average is $113.66 and its 200 day simple moving average is $120.93. The firm has a market capitalization of $2.84 billion, a PE ratio of -73.56 and a beta of 1.39.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) last issued its earnings results on Thursday, November 5th. The company reported $0.82 EPS for the quarter, topping the consensus estimate of $0.02 by $0.80. The firm had revenue of $221.59 million during the quarter, compared to the consensus estimate of $222.23 million. iRhythm Technologies had a positive return on equity of 26.88% and a negative net margin of 4.52%. The business's quarterly revenue was up 14.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.06) earnings per share. On average, analysts anticipate that iRhythm Technologies will post 1.03 EPS for the current fiscal year.

Institutional Investors Weigh In On iRhythm Technologies

A number of hedge funds have recently added to or reduced their stakes in the business. Stephens Investment Management Group LLC boosted its holdings in shares of iRhythm Technologies by 1.7% during the 3rd quarter. Stephens Investment Management Group LLC now owns 705,533 shares of the company's stock worth $80,191,000 after buying an additional 12,096 shares in the last quarter. Braidwell LP increased its stake in shares of iRhythm Technologies by 7.2% in the 2nd quarter. Braidwell LP now owns 654,262 shares of the company's stock valued at $77,824,000 after acquiring an additional 44,070 shares in the last quarter. Allspring Global Investments Holdings LLC lifted its position in shares of iRhythm Technologies by 14.7% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 467,113 shares of the company's stock valued at $55,222,000 after acquiring an additional 59,704 shares during the period. The Manufacturers Life Insurance Company lifted its position in shares of iRhythm Technologies by 99.2% during the 1st quarter. The Manufacturers Life Insurance Company now owns 390,577 shares of the company's stock valued at $46,096,000 after acquiring an additional 194,502 shares during the period. Finally, Rock Springs Capital Management LP lifted its position in shares of iRhythm Technologies by 11.4% during the 1st quarter. Rock Springs Capital Management LP now owns 261,750 shares of the company's stock valued at $30,892,000 after acquiring an additional 26,750 shares during the period.

About iRhythm Technologies

iRhythm Technologies is a medical technology company that develops digital solutions for detecting and monitoring heart rhythm disorders. Its services combine wearable electrocardiogram (ECG) devices with cloud-based data analysis and clinical reporting to help healthcare professionals assess patients for conditions such as cardiac arrhythmias. The company's Zio product line includes wearable ECG monitors, such as Zio XT, which records a patient's heart activity during an extended monitoring period. iRhythm also offers Zio AT, a monitoring service designed to provide clinicians with ECG data during the monitoring period.

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