Bank of America Has Lowered Expectations for iRhythm Technologies (NASDAQ:IRTC) Stock Price

Key Points

• Bank of America cut its price target on iRhythm Technologies from $225 to $180, while keeping a buy rating. The new target still implies about 63% upside from the prior close.
• Analysts remain generally constructive on the stock overall, with MarketBeat reporting a Moderate Buy consensus and an average price target of $191.85. The broader analyst mix includes 2 Strong Buy ratings, 11 Buy ratings, 1 Hold, and 1 Sell.
• iRhythm’s latest earnings beat expectations, with quarterly EPS of ($0.35) versus an expected ($0.56) and revenue of $199.39 million, up 25.6% year over year. Even so, the stock was trading near its 52-week low around $110, well below its 200-day average of $150.32.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) had its target price lowered by Bank of America from $225.00 to $180.00 in a note issued to investors on Monday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Bank of America's price objective would suggest a potential upside of 62.96% from the company's previous close.

Other equities analysts have also issued research reports about the stock. Robert W. Baird lowered their price target on shares of iRhythm Technologies from $220.00 to $200.00 and set an "outperform" rating for the company in a research report on Friday, February 20th. Weiss Ratings restated a "sell (d-)" rating on shares of iRhythm Technologies in a research report on Tuesday, April 21st. Citigroup raised their price objective on iRhythm Technologies from $155.00 to $157.00 and gave the stock a "buy" rating in a research note on Monday, May 4th. Truist Financial reduced their price objective on iRhythm Technologies from $200.00 to $170.00 and set a "buy" rating for the company in a research note on Wednesday, April 15th. Finally, Wall Street Zen raised iRhythm Technologies from a "hold" rating to a "buy" rating in a research note on Sunday, May 3rd. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $191.85.

iRhythm Technologies Stock Performance

Shares of NASDAQ:IRTC traded down $3.55 during trading on Monday, hitting $110.45. 389,529 shares of the company traded hands, compared to its average volume of 620,906. The stock has a market capitalization of $3.63 billion, a price-to-earnings ratio of -128.43 and a beta of 1.33. The business's fifty day moving average is $119.69 and its 200-day moving average is $150.32. iRhythm Technologies has a one year low of $110.02 and a one year high of $212.00. The company has a quick ratio of 4.98, a current ratio of 5.17 and a debt-to-equity ratio of 4.03.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, beating the consensus estimate of ($0.56) by $0.21. The company had revenue of $199.39 million during the quarter, compared to analyst estimates of $194.11 million. iRhythm Technologies had a negative return on equity of 10.26% and a negative net margin of 3.53%.The business's revenue was up 25.6% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.97) earnings per share. As a group, equities analysts predict that iRhythm Technologies will post 0.13 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Sumi Shrishrimal sold 2,830 shares of the firm's stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $128.44, for a total transaction of $363,485.20. Following the completion of the sale, the executive vice president directly owned 41,870 shares in the company, valued at approximately $5,377,782.80. This trade represents a 6.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Mervin Smith sold 1,352 shares of iRhythm Technologies stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $128.44, for a total value of $173,650.88. Following the sale, the executive vice president directly owned 25,612 shares of the company's stock, valued at approximately $3,289,605.28. The trade was a 5.01% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 94,509 shares of company stock valued at $12,734,195 over the last quarter. 0.98% of the stock is owned by insiders.

Hedge Funds Weigh In On iRhythm Technologies

Several institutional investors have recently bought and sold shares of the stock. Tudor Investment Corp ET AL bought a new position in iRhythm Technologies during the third quarter valued at about $3,439,800,000. Vanguard Group Inc. raised its holdings in iRhythm Technologies by 2.2% during the fourth quarter. Vanguard Group Inc. now owns 3,310,519 shares of the company's stock valued at $587,418,000 after buying an additional 70,420 shares in the last quarter. RTW Investments LP bought a new position in iRhythm Technologies during the fourth quarter valued at about $209,732,000. Geode Capital Management LLC raised its holdings in iRhythm Technologies by 8.6% during the fourth quarter. Geode Capital Management LLC now owns 858,405 shares of the company's stock valued at $152,337,000 after buying an additional 68,301 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of iRhythm Technologies by 45.6% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 829,862 shares of the company's stock valued at $147,251,000 after purchasing an additional 259,800 shares during the period.

iRhythm Technologies Company Profile

iRhythm Technologies, Inc is a medical technology company that develops and commercializes wearable cardiac monitoring devices and associated data analytics services. Founded in 2006 and headquartered in San Francisco, California, the company's flagship product is the Zio® patch, a discreet, single-use, continuous ECG recorder designed to monitor heart rhythms for up to 14 days. iRhythm's digital diagnostics platform combines biosensor technology with proprietary algorithms to detect arrhythmias and streamline data interpretation for physicians.

The Zio service is prescribed by cardiologists and other healthcare providers to aid in the diagnosis of atrial fibrillation, bradycardia, tachycardia and other rhythm disorders.

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