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

Key Points

• Wall Street Zen downgraded iRhythm Technologies (NASDAQ:IRTC) from a buy to a hold rating in a research note issued Saturday.
• Analysts remain mixed — MarketBeat shows an average rating of Moderate Buy with an average price target of $202.92, while several firms (Citigroup, Goldman Sachs, Wells Fargo) have recently trimmed their targets.
• iRhythm beat quarterly EPS expectations ($0.29 vs. $0.02) with 27.1% revenue growth but still reports negative margins and a negative P/E; the stock trades around $122 (1‑year range $103–$212) and insiders sold roughly $12.7M of shares in the past 90 days.

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

IRTC has been the topic of a number of other research reports. Citigroup dropped their price target on iRhythm Technologies from $242.00 to $214.00 and set a "buy" rating on the stock in a research report on Wednesday, March 11th. Evercore raised iRhythm Technologies from an "in-line" rating to an "outperform" rating and upped their price target for the company from $194.00 to $210.00 in a research report on Monday, January 5th. Morgan Stanley reaffirmed an "overweight" rating on shares of iRhythm Technologies in a research report on Monday, January 12th. The Goldman Sachs Group dropped their price target on iRhythm Technologies from $184.00 to $147.00 and set a "neutral" rating on the stock in a research report on Thursday, April 9th. Finally, Wells Fargo & Company dropped their price target on iRhythm Technologies from $225.00 to $200.00 and set an "overweight" rating on the stock in a research report on Friday, February 20th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, iRhythm Technologies has an average rating of "Moderate Buy" and an average price target of $202.92.

iRhythm Technologies Stock Up 0.7%

IRTC stock opened at $122.35 on Friday. The stock's fifty day simple moving average is $125.01 and its two-hundred day simple moving average is $156.04. 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 1-year low of $103.16 and a 1-year high of $212.00. The stock has a market cap of $4.02 billion, a P/E ratio of -87.39 and a beta of 1.18.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) last posted its quarterly earnings data on Thursday, February 19th. The company reported $0.29 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.27. iRhythm Technologies had a negative return on equity of 28.15% and a negative net margin of 5.96%.The business had revenue of $208.89 million for the quarter, compared to analysts' expectations of $202.61 million. During the same quarter in the previous year, the firm earned ($0.04) earnings per share. The business's revenue was up 27.1% on a year-over-year basis. Analysts expect that iRhythm Technologies will post -0.16 EPS for the current year.

Insider Activity at iRhythm Technologies

In related news, EVP Sumi Shrishrimal sold 2,830 shares of the business's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $128.44, for a total transaction of $363,485.20. Following the sale, the executive vice president directly owned 41,870 shares in the company, valued at approximately $5,377,782.80. The trade was a 6.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Chad Patterson sold 4,444 shares of the business's stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $128.44, for a total value of $570,787.36. Following the sale, the insider owned 58,164 shares in the company, valued at approximately $7,470,584.16. The trade was a 7.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 94,509 shares of company stock worth $12,734,195 in the last 90 days. 1.10% of the stock is owned by company insiders.

Institutional Trading of iRhythm Technologies

A number of hedge funds and other institutional investors have recently made changes to their positions in IRTC. Root Financial Partners LLC bought a new stake in shares of iRhythm Technologies during the 3rd quarter valued at $30,000. Measured Wealth Private Client Group LLC bought a new position in iRhythm Technologies in the 3rd quarter worth about $30,000. GAMMA Investing LLC increased its stake in iRhythm Technologies by 48.4% in the 4th quarter. GAMMA Investing LLC now owns 184 shares of the company's stock worth $33,000 after acquiring an additional 60 shares during the last quarter. Smartleaf Asset Management LLC increased its stake in iRhythm Technologies by 100.0% in the 3rd quarter. Smartleaf Asset Management LLC now owns 198 shares of the company's stock worth $34,000 after acquiring an additional 99 shares during the last quarter. Finally, FNY Investment Advisers LLC bought a new position in iRhythm Technologies in the 3rd quarter worth about $34,000.

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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