iRhythm Technologies (NASDAQ:IRTC) Shares Gap Up Following Better-Than-Expected Earnings

Shares of iRhythm Technologies (NASDAQ:IRTC) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $184.12, but opened at $207.44. iRhythm Technologies shares last traded at $200.6290, with a volume of 288,983 shares trading hands.

The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate of ($0.36) by $0.30. iRhythm Technologies had a negative net margin of 7.32% and a negative return on equity of 45.00%. The business had revenue of $192.88 million for the quarter, compared to analysts’ expectations of $184.75 million. During the same period in the previous year, the company earned ($1.26) earnings per share. The firm’s revenue for the quarter was up 30.8% compared to the same quarter last year. iRhythm Technologies has set its FY 2025 guidance at EPS.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the stock. Citigroup boosted their price target on shares of iRhythm Technologies from $205.00 to $242.00 and gave the company a “buy” rating in a research report on Friday. Evercore ISI cut their price target on shares of iRhythm Technologies from $185.00 to $175.00 and set an “in-line” rating for the company in a research note on Tuesday, October 7th. JPMorgan Chase & Co. boosted their price target on shares of iRhythm Technologies from $190.00 to $240.00 and gave the stock an “overweight” rating in a research note on Friday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of iRhythm Technologies in a research note on Wednesday, October 8th. Finally, Wells Fargo & Company upped their price target on shares of iRhythm Technologies from $130.00 to $180.00 and gave the company an “overweight” rating in a report on Friday, August 1st. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $201.57.

Insider Activity

In other news, CAO Marc Wade Rosenbaum sold 226 shares of the firm’s stock in a transaction dated Monday, August 11th. The shares were sold at an average price of $158.93, for a total transaction of $35,918.18. Following the sale, the chief accounting officer owned 10,879 shares of the company’s stock, valued at $1,728,999.47. This trade represents a 2.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Chad Patterson sold 2,555 shares of the business’s stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $158.97, for a total transaction of $406,168.35. Following the sale, the insider owned 43,667 shares of the company’s stock, valued at $6,941,742.99. This trade represents a 5.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 47,069 shares of company stock worth $7,627,986. 1.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On iRhythm Technologies

Several institutional investors and hedge funds have recently modified their holdings of IRTC. MCF Advisors LLC bought a new stake in shares of iRhythm Technologies during the first quarter valued at approximately $25,000. AlphaQuest LLC purchased a new position in iRhythm Technologies during the first quarter worth $30,000. Root Financial Partners LLC purchased a new position in iRhythm Technologies during the third quarter worth $30,000. ANTIPODES PARTNERS Ltd purchased a new position in iRhythm Technologies during the second quarter worth $39,000. Finally, BI Asset Management Fondsmaeglerselskab A S purchased a new position in iRhythm Technologies during the first quarter worth $50,000.

iRhythm Technologies Price Performance

The company has a quick ratio of 4.88, a current ratio of 5.02 and a debt-to-equity ratio of 6.25. The firm’s 50 day simple moving average is $177.02 and its 200 day simple moving average is $152.62. The company has a market capitalization of $6.02 billion, a PE ratio of -116.33 and a beta of 1.15.

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.