iRhythm Technologies (NASDAQ:IRTC) Trading Down 5.3% on Analyst Downgrade

Key Points

• iRhythm Technologies shares fell 5.3% after Truist Financial cut its price target from $174 to $160, even while maintaining a buy rating. The stock traded as low as $108.30 on lighter-than-normal volume.
• Analyst sentiment remains generally positive overall, with MarketBeat showing a consensus rating of Moderate Buy and an average price target of $186.62. Several firms have recently adjusted targets, mostly downward, though most still rate the stock a buy.
• The company’s latest quarter beat expectations, posting a smaller-than-expected loss and revenue of $199.39 million, up 25.6% year over year. An insider also bought shares recently, while institutional investors including Goldman Sachs and First Trust increased their positions.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) fell 5.3% during mid-day trading on Friday after Truist Financial lowered their price target on the stock from $174.00 to $160.00. Truist Financial currently has a buy rating on the stock. iRhythm Technologies traded as low as $108.30 and last traded at $109.24. 313,165 shares traded hands during mid-day trading, a decline of 49% from the average session volume of 609,697 shares. The stock had previously closed at $115.35.

Several other research firms have also recently commented on IRTC. Wall Street Zen cut iRhythm Technologies from a "buy" rating to a "hold" rating in a research note on Saturday, May 30th. Canaccord Genuity Group lowered their price objective on iRhythm Technologies from $180.00 to $152.00 and set a "buy" rating for the company in a research note on Monday, June 1st. Needham & Company LLC lifted their price objective on iRhythm Technologies from $254.00 to $255.00 and gave the stock a "buy" rating in a report on Friday, May 1st. Bank of America cut their target price on iRhythm Technologies from $225.00 to $180.00 and set a "buy" rating on the stock in a research report on Monday, May 18th. Finally, Citigroup increased their target price on iRhythm Technologies from $155.00 to $157.00 and gave the company a "buy" rating in a research note on Monday, May 4th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $186.62.

Insider Transactions at iRhythm Technologies

In other news, Director Abhijit Y. Talwalkar acquired 5,312 shares of the business's stock in a transaction on Monday, May 11th. The shares were purchased at an average price of $10.71 per share, for a total transaction of $56,891.52. Following the completion of the purchase, the director directly owned 25,611 shares of the company's stock, valued at $274,293.81. This represents a 26.17% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.98% of the stock is owned by insiders.

Institutional Investors Weigh In On iRhythm Technologies

Several institutional investors and hedge funds have recently made changes to their positions in IRTC. Royal Bank of Canada lifted its stake in iRhythm Technologies by 423.0% during the first quarter. Royal Bank of Canada now owns 7,573 shares of the company's stock worth $793,000 after purchasing an additional 6,125 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in iRhythm Technologies by 33.5% in the first quarter. Goldman Sachs Group Inc. now owns 433,780 shares of the company's stock worth $45,408,000 after purchasing an additional 108,941 shares during the period. Strs Ohio bought a new stake in iRhythm Technologies during the first quarter valued at $147,000. Arrowstreet Capital Limited Partnership bought a new stake in iRhythm Technologies during the second quarter valued at $1,278,000. Finally, First Trust Advisors LP raised its holdings in shares of iRhythm Technologies by 66.0% during the second quarter. First Trust Advisors LP now owns 56,197 shares of the company's stock worth $8,652,000 after purchasing an additional 22,337 shares during the period.

iRhythm Technologies Stock Down 5.2%

The stock's fifty day simple moving average is $114.48 and its two-hundred day simple moving average is $130.84. The company has a debt-to-equity ratio of 4.03, a current ratio of 5.17 and a quick ratio of 4.98. The company has a market capitalization of $3.59 billion, a price-to-earnings ratio of -127.10 and a beta of 1.27.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, beating the consensus estimate of ($0.56) by $0.21. iRhythm Technologies had a negative net margin of 3.53% and a negative return on equity of 10.26%. The business had revenue of $199.39 million during the quarter, compared to analyst estimates of $194.11 million. During the same period in the previous year, the business posted ($0.97) EPS. The company's quarterly revenue was up 25.6% on a year-over-year basis. On average, sell-side analysts predict that iRhythm Technologies will post 0.13 earnings per share for the current fiscal year.

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.

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