iRhythm Technologies (NASDAQ:IRTC) Shares Gap Down Following Weak Earnings

iRhythm Technologies, Inc. (NASDAQ:IRTC) shares gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $75.77, but opened at $68.00. iRhythm Technologies shares last traded at $72.51, with a volume of 78,844 shares changing hands.

The company reported ($1.26) earnings per share for the quarter, missing the consensus estimate of ($0.55) by ($0.71). iRhythm Technologies had a negative net margin of 24.50% and a negative return on equity of 84.14%. The company had revenue of $147.54 million during the quarter, compared to the consensus estimate of $146.69 million. During the same period in the prior year, the company earned ($0.89) earnings per share. The firm’s revenue was up 18.4% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. Robert W. Baird decreased their price objective on iRhythm Technologies from $120.00 to $110.00 and set an “outperform” rating on the stock in a report on Friday, August 2nd. Needham & Company LLC dropped their price objective on shares of iRhythm Technologies from $119.00 to $96.00 and set a “buy” rating for the company in a research note on Thursday. The Goldman Sachs Group initiated coverage on shares of iRhythm Technologies in a research report on Friday, October 4th. They set a “neutral” rating and a $78.00 target price on the stock. Citigroup dropped their price target on shares of iRhythm Technologies from $135.00 to $110.00 and set a “buy” rating for the company in a research report on Thursday, August 22nd. Finally, JPMorgan Chase & Co. reduced their price target on iRhythm Technologies from $133.00 to $100.00 and set an “overweight” rating on the stock in a research report on Friday, August 2nd. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and nine have given a buy rating to the company. According to MarketBeat.com, iRhythm Technologies presently has an average rating of “Moderate Buy” and a consensus target price of $111.60.

Insiders Place Their Bets

In other news, CFO Brice Bobzien sold 1,372 shares of the business’s stock in a transaction on Friday, August 9th. The stock was sold at an average price of $70.34, for a total transaction of $96,506.48. Following the completion of the transaction, the chief financial officer now owns 24,428 shares of the company’s stock, valued at approximately $1,718,265.52. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.68% of the company’s stock.

Hedge Funds Weigh In On iRhythm Technologies

A number of institutional investors have recently added to or reduced their stakes in the stock. Diversified Trust Co grew its stake in shares of iRhythm Technologies by 148.7% during the first quarter. Diversified Trust Co now owns 4,934 shares of the company’s stock worth $572,000 after buying an additional 2,950 shares during the last quarter. Allspring Global Investments Holdings LLC grew its position in iRhythm Technologies by 13.4% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 415,026 shares of the company’s stock worth $48,143,000 after acquiring an additional 49,168 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. increased its holdings in iRhythm Technologies by 7.2% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 78,111 shares of the company’s stock worth $9,360,000 after purchasing an additional 5,276 shares in the last quarter. BNP Paribas Financial Markets raised its position in iRhythm Technologies by 9.2% in the first quarter. BNP Paribas Financial Markets now owns 16,176 shares of the company’s stock valued at $1,876,000 after purchasing an additional 1,358 shares during the last quarter. Finally, Capstone Investment Advisors LLC acquired a new stake in shares of iRhythm Technologies during the first quarter valued at about $1,078,000.

iRhythm Technologies Stock Performance

The company has a fifty day moving average price of $69.14 and a two-hundred day moving average price of $85.45. The company has a debt-to-equity ratio of 6.50, a current ratio of 6.92 and a quick ratio of 6.76. The company has a market capitalization of $2.25 billion, a P/E ratio of -17.13 and a beta of 1.22.

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.