The Goldman Sachs Group Issues Pessimistic Forecast for iRhythm Technologies (NASDAQ:IRTC) Stock Price

Key Points

• Goldman Sachs cut its price target for iRhythm from $184 to $147 and kept a "neutral" rating, implying roughly a 24.1% upside from the prior close.
• Analyst coverage is mixed-to-positive with a MarketBeat average rating of "Moderate Buy" and an average price target of $205.23, though several firms (Wells Fargo, Canaccord, Truist) recently trimmed targets while others (Morgan Stanley, Needham) remain bullish.
• Shares traded near $118.45 midday after iRhythm beat quarterly revenue ($208.9M) and EPS estimates, but the company remains unprofitable (negative net margin and ROE), has seen insider selling, and sits well below its 12‑month high of $212.00.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) had its price target cut by equities research analysts at The Goldman Sachs Group from $184.00 to $147.00 in a report issued on Thursday,Benzinga reports. The firm currently has a "neutral" rating on the stock. The Goldman Sachs Group's target price indicates a potential upside of 24.11% from the company's previous close.

IRTC has been the subject of several other reports. Morgan Stanley reaffirmed an "overweight" rating on shares of iRhythm Technologies in a report on Monday, January 12th. Wells Fargo & Company cut their target price on shares of iRhythm Technologies from $225.00 to $200.00 and set an "overweight" rating for the company in a report on Friday, February 20th. Canaccord Genuity Group cut their target price on shares of iRhythm Technologies from $212.00 to $198.00 and set a "buy" rating for the company in a report on Friday, February 20th. Needham & Company LLC reaffirmed a "buy" rating and set a $244.00 target price on shares of iRhythm Technologies in a report on Monday, January 12th. Finally, Truist Financial reaffirmed a "buy" rating and set a $200.00 target price (down from $215.00) on shares of iRhythm Technologies in a 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 company's stock. Based on data from MarketBeat, iRhythm Technologies currently has an average rating of "Moderate Buy" and an average price target of $205.23.

iRhythm Technologies Stock Performance

Shares of NASDAQ:IRTC traded down $2.05 during midday trading on Thursday, reaching $118.45. The company's stock had a trading volume of 136,620 shares, compared to its average volume of 668,276. The firm has a market capitalization of $3.83 billion, a PE ratio of -84.96 and a beta of 1.18. iRhythm Technologies has a twelve month low of $95.74 and a twelve month high of $212.00. The stock has a fifty day moving average of $132.06 and a 200 day moving average of $160.29. The company has a quick ratio of 4.48, a current ratio of 4.63 and a debt-to-equity ratio of 4.25.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) last released its quarterly earnings data on Thursday, February 19th. The company reported $0.29 earnings per share for the quarter, topping analysts' consensus estimates of $0.02 by $0.27. The firm had revenue of $208.89 million for the quarter, compared to analyst estimates of $202.61 million. iRhythm Technologies had a negative net margin of 5.96% and a negative return on equity of 28.15%. The business's quarterly revenue was up 27.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.04) earnings per share. On average, equities analysts expect that iRhythm Technologies will post -1.98 EPS for the current fiscal year.

Insider Buying and Selling

In related news, EVP Mervin Smith sold 1,352 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 $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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, 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 completion of the sale, the executive vice president directly owned 41,870 shares of the company's stock, valued at approximately $5,377,782.80. The trade was a 6.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 94,509 shares of company stock worth $12,734,195 in the last 90 days. 1.10% of the stock is owned by insiders.

Hedge Funds Weigh In On iRhythm Technologies

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Rockefeller Capital Management L.P. lifted its position in shares of iRhythm Technologies by 89.8% in the fourth quarter. Rockefeller Capital Management L.P. now owns 1,361 shares of the company's stock valued at $241,000 after acquiring an additional 644 shares in the last quarter. Corient Private Wealth LLC lifted its position in shares of iRhythm Technologies by 12.1% in the fourth quarter. Corient Private Wealth LLC now owns 1,764 shares of the company's stock valued at $313,000 after acquiring an additional 191 shares in the last quarter. MidFirst Bank purchased a new position in shares of iRhythm Technologies in the fourth quarter valued at approximately $235,000. Fuller & Thaler Asset Management Inc. lifted its position in shares of iRhythm Technologies by 7.4% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 639,423 shares of the company's stock valued at $113,459,000 after acquiring an additional 44,175 shares in the last quarter. Finally, XTX Topco Ltd purchased a new position in shares of iRhythm Technologies in the fourth quarter valued at approximately $855,000.

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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