iRhythm Technologies (NASDAQ:IRTC) Shares Gap Down on Disappointing Earnings

iRhythm Technologies, Inc. (NASDAQ:IRTC - Get Free Report)'s share price gapped down prior to trading on Thursday following a dissappointing earnings announcement. 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 trading hands.

The company reported ($1.26) earnings per share for the quarter, missing analysts' consensus estimates 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 last year, the firm posted ($0.89) EPS. The company's revenue was up 18.4% on a year-over-year basis.

Analysts Set New Price Targets

Several research analysts have recently issued reports on IRTC shares. The Goldman Sachs Group began coverage on iRhythm Technologies in a research report on Friday, October 4th. They issued a "neutral" rating and a $78.00 target price for the company. JPMorgan Chase & Co. reduced their price target on iRhythm Technologies from $133.00 to $100.00 and set an "overweight" rating for the company in a report on Friday, August 2nd. Canaccord Genuity Group increased their price objective on shares of iRhythm Technologies from $122.00 to $137.00 and gave the company a "buy" rating in a research report on Wednesday, September 25th. Needham & Company LLC reduced their price target on shares of iRhythm Technologies from $119.00 to $96.00 and set a "buy" rating for the company in a research report on Thursday. Finally, Oppenheimer lowered their price objective on iRhythm Technologies from $165.00 to $145.00 and set an "outperform" rating on the stock in a research report on Friday, August 2nd. One analyst has rated the stock with a sell rating, one has assigned a hold rating and nine have given a buy rating to the company's stock. According to data from MarketBeat.com, iRhythm Technologies currently has an average rating of "Moderate Buy" and an average target price of $111.60.

Insider Buying and Selling

In other news, CFO Brice Bobzien sold 1,372 shares of the firm's stock in a transaction dated Friday, August 9th. The stock was sold at an average price of $70.34, for a total value of $96,506.48. Following the transaction, the chief financial officer now owns 24,428 shares of the company's stock, valued at $1,718,265.52. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In other news, CFO Brice Bobzien sold 1,372 shares of the firm's stock in a transaction on Friday, August 9th. The shares were sold at an average price of $70.34, for a total transaction of $96,506.48. Following the sale, the chief financial officer now directly owns 24,428 shares in the company, valued at $1,718,265.52. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Mervin Smith sold 688 shares of the company's stock in a transaction on Friday, August 2nd. The stock was sold at an average price of $74.66, for a total transaction of $51,366.08. Following the completion of the transaction, the executive vice president now directly owns 10,360 shares of the company's stock, valued at $773,477.60. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 5,072 shares of company stock valued at $372,748. 0.68% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Headlands Technologies LLC boosted its position in shares of iRhythm Technologies by 10,650.0% during the 1st quarter. Headlands Technologies LLC now owns 430 shares of the company's stock valued at $50,000 after acquiring an additional 426 shares during the last quarter. Nisa Investment Advisors LLC raised its position in shares of iRhythm Technologies by 79.6% during the 2nd quarter. Nisa Investment Advisors LLC now owns 625 shares of the company's stock valued at $67,000 after buying an additional 277 shares in the last quarter. SG Americas Securities LLC bought a new position in shares of iRhythm Technologies in the 1st quarter valued at about $126,000. nVerses Capital LLC increased its stake in iRhythm Technologies by 400.0% during the third quarter. nVerses Capital LLC now owns 2,000 shares of the company's stock worth $148,000 after acquiring an additional 1,600 shares during the last quarter. Finally, Russell Investments Group Ltd. raised its position in iRhythm Technologies by 79,700.0% during the first quarter. Russell Investments Group Ltd. now owns 1,596 shares of the company's stock valued at $185,000 after purchasing an additional 1,594 shares during the period.

iRhythm Technologies Price Performance

The firm has a market capitalization of $2.25 billion, a P/E ratio of -15.92 and a beta of 1.22. The company has a current ratio of 6.92, a quick ratio of 6.76 and a debt-to-equity ratio of 6.50. The firm has a 50 day moving average price of $69.09 and a 200-day moving average price of $85.54.

About iRhythm Technologies

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.