iRhythm Technologies (NASDAQ:IRTC) to Repurchase $200 million in Outstanding Stock

Key Points

• iRhythm’s board authorized a $200 million share repurchase program, allowing the company to buy back up to 6.7% of its outstanding shares through open-market purchases.
• In its latest quarter, iRhythm reported EPS of $0.82, beating the $0.02 consensus estimate, while revenue of $221.59 million fell slightly short of forecasts; revenue grew 14.9% year over year.
• Analysts’ consensus rating was “Moderate Buy,” with an average price target of $164.07.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) declared that its Board of Directors has approved a share repurchase plan on Wednesday, November 11th, RTT News reports. The company plans to buy back $200 million in shares. This buyback authorization allows the company to repurchase up to 6.7% of its shares through open market purchases. Stock buyback plans are usually a sign that the company's board believes its stock is undervalued.

iRhythm Technologies Stock Up 5.5%

IRTC stock traded up $4.88 during midday trading on Thursday, hitting $93.56. The stock had a trading volume of 1,390,277 shares, compared to its average volume of 928,925. The firm has a market cap of $3.15 billion, a price-to-earnings ratio of 66.18 and a beta of 1.39. The business has a 50-day moving average of $112.41 and a two-hundred day moving average of $120.23. iRhythm Technologies has a 52-week low of $82.85 and a 52-week high of $192.47. The company has a debt-to-equity ratio of 3.68, a current ratio of 3.57 and a quick ratio of 3.45.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) last issued its quarterly earnings results on Thursday, November 5th. The company reported $0.82 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.02 by $0.80. The company had revenue of $221.59 million during the quarter, compared to analysts' expectations of $222.23 million. iRhythm Technologies had a negative net margin of 4.52% and a positive return on equity of 26.88%. iRhythm Technologies's revenue was up 14.9% on a year-over-year basis. During the same period last year, the company posted ($0.06) EPS. As a group, equities research analysts forecast that iRhythm Technologies will post 0.79 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on IRTC. Canaccord Genuity Group raised their price objective on iRhythm Technologies from $196.00 to $206.00 and gave the company a "buy" rating in a research note on Friday, November 6th. Truist Financial lowered their target price on iRhythm Technologies from $168.00 to $140.00 and set a "buy" rating for the company in a research note on Monday. Wells Fargo & Company dropped their target price on iRhythm Technologies from $150.00 to $135.00 and set an "overweight" rating for the company in a report on Friday, November 6th. Citigroup cut iRhythm Technologies from a "buy" rating to a "neutral" rating and dropped their target price for the company from $157.00 to $124.00 in a report on Friday, November 6th. Finally, Stephens reduced their price target on iRhythm Technologies from $160.00 to $120.00 and set an "overweight" rating on the stock in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, iRhythm Technologies presently has an average rating of "Moderate Buy" and a consensus target price of $164.07.

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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