iRhythm Technologies (NASDAQ:IRTC) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded iRhythm Technologies from a “buy” to a “hold,” adding to a mixed analyst backdrop that still leaves the stock with a “Moderate Buy” consensus and an average price target of $191.85.
• Latest earnings beat expectations: iRhythm reported a smaller-than-expected loss of $0.35 per share and revenue of $199.39 million, with quarterly sales up 25.6% year over year.
• Stock and ownership activity show pressure: shares traded at $113.90, near the 52-week low of $108.81 and well below the 52-week high of $212.00, while insiders sold shares and several institutional investors increased positions.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

Several other brokerages also recently weighed in on IRTC. JPMorgan Chase & Co. decreased their target price on shares of iRhythm Technologies from $215.00 to $175.00 and set an "overweight" rating for the company in a research note on Friday, May 1st. Truist Financial decreased their target price on shares of iRhythm Technologies from $200.00 to $170.00 and set a "buy" rating for the company in a research note on Wednesday, April 15th. Weiss Ratings reiterated a "sell (d-)" rating on shares of iRhythm Technologies in a research note on Tuesday, April 21st. The Goldman Sachs Group decreased their target price on shares of iRhythm Technologies from $184.00 to $147.00 and set a "neutral" rating for the company in a research note on Thursday, April 9th. Finally, Bank of America decreased their target price on shares of iRhythm Technologies from $225.00 to $180.00 and set a "buy" rating for the company in a research note on Monday, May 18th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $191.85.

iRhythm Technologies Stock Performance

Shares of IRTC stock opened at $113.90 on Friday. The stock's 50-day moving average is $118.83 and its two-hundred day moving average is $145.84. The firm has a market cap of $3.74 billion, a price-to-earnings ratio of -132.44 and a beta of 1.33. iRhythm Technologies has a 1 year low of $108.81 and a 1 year high of $212.00. The company has a debt-to-equity ratio of 4.03, a quick ratio of 4.98 and a current ratio of 5.17.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.56) by $0.21. The company had revenue of $199.39 million for 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 quarterly revenue was up 25.6% compared to the same quarter last year. During the same quarter last year, the company posted ($0.97) earnings per share. Analysts predict that iRhythm Technologies will post 0.13 earnings per share for the current year.

Insider Transactions at iRhythm Technologies

In related news, CAO Marc Wade Rosenbaum sold 816 shares of the firm's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $128.45, for a total value of $104,815.20. Following the completion of the sale, the chief accounting officer owned 16,706 shares in the company, valued at $2,145,885.70. This trade represents a 4.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Mervin Smith sold 1,352 shares of the firm's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $128.44, for a total transaction of $173,650.88. Following the completion of the sale, the executive vice president 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 17,826 shares of company stock valued at $2,289,620 over the last 90 days. Insiders own 0.98% of the company's stock.

Institutional Investors Weigh In On iRhythm Technologies

Hedge funds have recently added to or reduced their stakes in the company. Amundi lifted its position in shares of iRhythm Technologies by 48.4% during the 1st quarter. Amundi now owns 49,575 shares of the company's stock valued at $5,851,000 after acquiring an additional 16,165 shares during the period. California State Teachers Retirement System lifted its position in shares of iRhythm Technologies by 22.1% during the 1st quarter. California State Teachers Retirement System now owns 37,324 shares of the company's stock valued at $4,405,000 after acquiring an additional 6,763 shares during the period. 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. 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, Quantinno Capital Management LP lifted its position in shares of iRhythm Technologies by 1,172.8% during the 1st quarter. Quantinno Capital Management LP now owns 18,621 shares of the company's stock valued at $2,198,000 after acquiring an additional 17,158 shares during the period.

About iRhythm Technologies

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.