iRhythm Technologies (NASDAQ:IRTC) Sets New 52-Week Low After Analyst Downgrade

Key Points

• iRhythm Technologies hit a new 52-week low after Bank of America cut its price target from $225 to $180, even while keeping a buy rating. The stock fell to as low as $111.16 on heavy volume.
• Analyst sentiment remains generally positive, with a consensus rating of “Moderate Buy” and an average price target of $191.85. Several firms recently trimmed targets, though some still maintain buy or outperform ratings.
• Recent fundamentals were mixed but better than expected: the company beat quarterly EPS and revenue estimates, with revenue up 25.6% year over year. However, the stock has also seen notable insider selling in recent months.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) shares reached a new 52-week low on Monday after Bank of America lowered their price target on the stock from $225.00 to $180.00. Bank of America currently has a buy rating on the stock. iRhythm Technologies traded as low as $111.16 and last traded at $111.9250, with a volume of 180548 shares. The stock had previously closed at $114.00.

Several other research firms have also recently weighed in on IRTC. Robert W. Baird dropped their price target on shares of iRhythm Technologies from $220.00 to $200.00 and set an "outperform" rating for the company in a research note on Friday, February 20th. Wells Fargo & Company reduced their price target on shares of iRhythm Technologies from $200.00 to $180.00 and set an "overweight" rating on the stock in a research report on Friday, May 1st. Citigroup upped their price objective on iRhythm Technologies from $155.00 to $157.00 and gave the company a "buy" rating in a report on Monday, May 4th. Truist Financial cut their target price on iRhythm Technologies from $200.00 to $170.00 and set a "buy" rating for the company in a research note on Wednesday, April 15th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of iRhythm Technologies in a research report on Tuesday, April 21st. Two equities research 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 issued a Sell rating to the company's stock. According to MarketBeat, iRhythm Technologies currently has a consensus rating of "Moderate Buy" and an average price target of $191.85.

Insider Transactions at iRhythm Technologies

In related news, insider Patrick Michael Murphy sold 7,805 shares of the stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $135.42, for a total transaction of $1,056,953.10. Following the completion of the transaction, the insider owned 60,536 shares of the company's stock, valued at approximately $8,197,785.12. This trade represents a 11.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Chad Patterson sold 8,967 shares of iRhythm Technologies stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $135.42, for a total transaction of $1,214,311.14. Following the completion of the sale, the insider owned 51,738 shares of the company's stock, valued at $7,006,359.96. This trade represents a 14.77% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 94,509 shares of company stock worth $12,734,195. 0.98% of the stock is owned by company insiders.

Hedge Funds Weigh In On iRhythm Technologies

A number of hedge funds and other institutional investors have recently bought and sold shares of IRTC. Tudor Investment Corp ET AL purchased a new stake in iRhythm Technologies during the third quarter worth about $3,439,800,000. Vanguard Group Inc. grew its holdings in shares of iRhythm Technologies by 2.2% in the fourth quarter. Vanguard Group Inc. now owns 3,310,519 shares of the company's stock valued at $587,418,000 after purchasing an additional 70,420 shares in the last quarter. RTW Investments LP purchased a new stake in iRhythm Technologies during the 4th quarter worth approximately $209,732,000. Geode Capital Management LLC increased its stake in iRhythm Technologies by 8.6% during the 4th quarter. Geode Capital Management LLC now owns 858,405 shares of the company's stock worth $152,337,000 after buying an additional 68,301 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in iRhythm Technologies by 45.6% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 829,862 shares of the company's stock worth $147,251,000 after buying an additional 259,800 shares in the last quarter.

iRhythm Technologies Price Performance

The company's 50-day simple moving average is $119.69 and its 200 day simple moving average is $150.32. The company has a market cap of $3.70 billion, a PE ratio of -130.82 and a beta of 1.33. 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 announced its quarterly earnings data on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.56) by $0.21. The business had revenue of $199.39 million during the quarter, compared to analysts' expectations 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 business posted ($0.97) EPS. On average, sell-side analysts predict that iRhythm Technologies will post 0.13 earnings per share for the current fiscal year.

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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