Sands Capital Management LLC Cuts Stake in iRhythm Technologies $IRTC

Key Points

• Sands Capital cut its stake in iRhythm by 23.3% in Q3, selling 679,417 shares and now owns 2,236,110 shares (about 6.94% of the company) valued at roughly $384.6 million, making it Sands' 29th largest holding.
• iRhythm topped the quarter's expectations with $0.29 EPS versus a $0.02 estimate and revenue of $208.9 million (+27.1% YoY), but remains unprofitable (negative net margin and ROE); analysts have a consensus rating of Moderate Buy with a $211.62 price target.
• Company insiders have been net sellers recently, disposing of 94,509 shares worth about $12.7 million in the last 90 days, including two EVP sales on March 2 that trimmed their positions by ~6.3% and ~5.0%.

Sands Capital Management LLC lessened its holdings in iRhythm Technologies (NASDAQ:IRTC - Free Report) by 23.3% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 2,236,110 shares of the company's stock after selling 679,417 shares during the quarter. iRhythm Technologies accounts for 1.1% of Sands Capital Management LLC's investment portfolio, making the stock its 29th biggest position. Sands Capital Management LLC owned 6.94% of iRhythm Technologies worth $384,589,000 as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in the business. Holocene Advisors LP grew its stake in shares of iRhythm Technologies by 2,023.1% during the second quarter. Holocene Advisors LP now owns 313,094 shares of the company's stock valued at $48,204,000 after buying an additional 298,347 shares during the last quarter. Loomis Sayles & Co. L P purchased a new stake in iRhythm Technologies during the 2nd quarter valued at about $39,339,000. Goldman Sachs Group Inc. boosted its holdings in iRhythm Technologies by 33.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 433,780 shares of the company's stock valued at $45,408,000 after acquiring an additional 108,941 shares during the period. Assenagon Asset Management S.A. bought a new position in iRhythm Technologies during the 3rd quarter worth approximately $13,394,000. Finally, M&G PLC purchased a new position in iRhythm Technologies in the 2nd quarter worth approximately $11,457,000.

iRhythm Technologies Stock Down 2.6%

Shares of iRhythm Technologies stock opened at $120.53 on Wednesday. The company has a current ratio of 4.63, a quick ratio of 4.48 and a debt-to-equity ratio of 4.25. iRhythm Technologies has a 12-month low of $92.52 and a 12-month high of $212.00. The company has a market cap of $3.90 billion, a P/E ratio of -86.09 and a beta of 1.09. The company's fifty day simple moving average is $154.14 and its two-hundred day simple moving average is $168.79.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) last posted its earnings results on Thursday, February 19th. The company reported $0.29 EPS for the quarter, topping the consensus estimate of $0.02 by $0.27. iRhythm Technologies had a negative net margin of 5.96% and a negative return on equity of 28.15%. The firm had revenue of $208.89 million during the quarter, compared to analysts' expectations of $202.61 million. During the same period last year, the company posted ($0.04) EPS. The company's quarterly revenue was up 27.1% compared to the same quarter last year. Research analysts anticipate that iRhythm Technologies will post -1.98 EPS for the current year.

Analyst Ratings Changes

Several brokerages have recently issued reports on IRTC. Wall Street Zen upgraded shares of iRhythm Technologies from a "hold" rating to a "buy" rating in a report on Saturday, February 21st. Morgan Stanley reissued an "overweight" rating on shares of iRhythm Technologies in a research report on Monday, January 12th. Weiss Ratings reissued a "sell (d-)" rating on shares of iRhythm Technologies in a report on Thursday, January 22nd. Needham & Company LLC restated a "buy" rating and issued a $244.00 price objective on shares of iRhythm Technologies in a research report on Monday, January 12th. Finally, Evercore upgraded shares of iRhythm Technologies from an "in-line" rating to an "outperform" rating and increased their target price for the stock from $194.00 to $210.00 in a report on Monday, January 5th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $211.62.

Insider Buying and Selling at iRhythm Technologies

In other news, EVP Sumi Shrishrimal sold 2,830 shares of the firm's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $128.44, for a total value of $363,485.20. Following the completion of the transaction, the executive vice president owned 41,870 shares in the company, valued at $5,377,782.80. This trade represents a 6.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Mervin Smith sold 1,352 shares of the stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $128.44, for a total value of $173,650.88. Following the completion of the transaction, the executive vice president owned 25,612 shares of the company's stock, valued at approximately $3,289,605.28. This trade represents a 5.01% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 94,509 shares of company stock worth $12,734,195. Insiders own 0.68% of the company's stock.

iRhythm Technologies 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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