iRhythm Technologies (NASDAQ:IRTC) Sets New 52-Week High After Strong Earnings

Key Points

• iRhythm Technologies reached a new 52-week high of $165.00 after posting better-than-expected earnings, with a last trade at $161.70.
• The company reported $186.69 million in revenue for the quarter, exceeding analysts' expectations of $173.94 million, and earnings per share of ($0.32), topping consensus estimates of ($0.53).
• Analyst ratings have improved, with multiple firms raising their price targets, including Needham & Company, which increased it to $180.00, reflecting a growing confidence in the stock's potential.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) reached a new 52-week high during trading on Friday following a better than expected earnings announcement. The stock traded as high as $165.00 and last traded at $161.70, with a volume of 264925 shares changing hands. The stock had previously closed at $140.18.

The company reported ($0.32) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.53) by $0.21. The business had revenue of $186.69 million during the quarter, compared to analysts' expectations of $173.94 million. iRhythm Technologies had a negative net margin of 15.90% and a negative return on equity of 101.04%. The business's quarterly revenue was up 26.1% on a year-over-year basis. During the same quarter last year, the company posted ($0.61) earnings per share.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Wells Fargo & Company raised shares of iRhythm Technologies from an "equal weight" rating to an "overweight" rating and lifted their price objective for the company from $104.00 to $130.00 in a report on Friday, May 2nd. Morgan Stanley cut their price objective on shares of iRhythm Technologies from $160.00 to $147.00 and set an "overweight" rating for the company in a report on Tuesday, July 15th. Robert W. Baird lifted their target price on shares of iRhythm Technologies from $133.00 to $150.00 and gave the company an "outperform" rating in a research report on Friday, May 2nd. Needham & Company LLC lifted their target price on shares of iRhythm Technologies from $151.00 to $180.00 and gave the stock a "buy" rating in a research note on Friday. Finally, Citigroup lifted their target price on shares of iRhythm Technologies from $130.00 to $167.00 and gave the stock a "buy" rating in a research note on Thursday, May 22nd. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $140.20.

Insider Buying and Selling

In other news, CFO Daniel G. Wilson sold 3,000 shares of the company's stock in a transaction on Monday, June 23rd. The shares were sold at an average price of $150.00, for a total value of $450,000.00. Following the completion of the transaction, the chief financial officer owned 40,307 shares in the company, valued at approximately $6,046,050. This represents a 6.93% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Minang Turakhia sold 1,420 shares of the company's stock in a transaction on Wednesday, July 2nd. The shares were sold at an average price of $145.41, for a total transaction of $206,482.20. Following the completion of the transaction, the executive vice president owned 41,393 shares of the company's stock, valued at approximately $6,018,956.13. The trade was a 3.32% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 5,356 shares of company stock valued at $796,882 in the last ninety days. Company insiders own 1.10% of the company's stock.

Institutional Trading of iRhythm Technologies

Hedge funds have recently made changes to their positions in the company. MCF Advisors LLC acquired a new stake in shares of iRhythm Technologies in the 1st quarter worth $25,000. AlphaQuest LLC acquired a new position in iRhythm Technologies during the first quarter valued at approximately $30,000. BI Asset Management Fondsmaeglerselskab A S acquired a new position in iRhythm Technologies during the first quarter valued at approximately $50,000. CWM LLC lifted its position in iRhythm Technologies by 54.3% during the first quarter. CWM LLC now owns 517 shares of the company's stock valued at $54,000 after buying an additional 182 shares in the last quarter. Finally, Raiffeisen Bank International AG acquired a new position in iRhythm Technologies during the fourth quarter valued at approximately $60,000.

iRhythm Technologies Price Performance

The company has a quick ratio of 5.58, a current ratio of 5.71 and a debt-to-equity ratio of 7.47. The business's 50 day moving average price is $142.23 and its 200-day moving average price is $121.97. The company has a market cap of $5.22 billion, a PE ratio of -51.56 and a beta of 1.41.

iRhythm Technologies Company Profile

iRhythm Technologies, Inc, a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services.

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