iRhythm Technologies (NASDAQ:IRTC) to Buy Back $200 million in Outstanding Shares

iRhythm Technologies (NASDAQ:IRTC) declared that its Board of Directors has authorized a share buyback plan on Wednesday, November 11th, RTT News reports. The company plans to repurchase $200 million in outstanding shares. This buyback authorization permits the company to buy up to 6.7% of its shares through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its stock is undervalued.

Analyst Ratings Changes

A number of research firms recently commented on IRTC. Canaccord Genuity Group boosted their target price on iRhythm Technologies from $196.00 to $206.00 and gave the stock a “buy” rating in a research report on Friday, November 6th. Weiss Ratings raised iRhythm Technologies from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, October 27th. Stephens decreased their price objective on iRhythm Technologies from $160.00 to $120.00 and set an “overweight” rating on the stock in a report on Wednesday. Citigroup downgraded iRhythm Technologies from a “buy” rating to a “neutral” rating and lowered their target price for the company from $157.00 to $124.00 in a research report on Friday, November 6th. Finally, BTIG Research cut their target price on shares of iRhythm Technologies from $185.00 to $170.00 and set a “buy” rating for the company in a report on Friday, November 6th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $164.07.

iRhythm Technologies Trading Up 5.5%

IRTC traded up $4.88 on Thursday, hitting $93.56. The company had a trading volume of 1,390,277 shares, compared to its average volume of 928,925. The company has a market cap of $3.15 billion, a PE ratio of 66.18 and a beta of 1.39. iRhythm Technologies has a 12-month low of $82.85 and a 12-month high of $192.47. The company has a quick ratio of 3.45, a current ratio of 3.57 and a debt-to-equity ratio of 3.68. The business’s fifty day simple moving average is $112.41 and its 200 day simple moving average is $120.23.

iRhythm Technologies (NASDAQ:IRTC) last issued its quarterly earnings data on Thursday, November 5th. The company reported $0.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.02 by $0.80. The business had revenue of $221.59 million for the quarter, compared to the consensus estimate of $222.23 million. iRhythm Technologies had a positive return on equity of 26.88% and a negative net margin of 4.52%. The company’s quarterly revenue was up 14.9% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.06) earnings per share. Equities research analysts expect that iRhythm Technologies will post 0.79 EPS for the current year.

Key Headlines Impacting iRhythm Technologies

These are some of the IRTC headlines that stood out recently:

• Positive Sentiment: iRhythm’s board approved a program to repurchase up to $200 million of common stock—about 6.7% of shares outstanding—through open-market purchases. Buybacks can support per-share metrics and may signal management sees value in the stock. Company announcement of share-repurchase program
• Negative Sentiment: Stephens lowered its price target to $120 from $160, suggesting a more cautious outlook on valuation, but kept its Overweight rating. Benzinga report
• Negative Sentiment: Truist Financial also cut its price target, according to a report; the available article details do not specify the revised target or rating. Report on Truist Financial’s price-target cut

About iRhythm Technologies

iRhythm Technologies is a medical technology company that develops digital solutions for detecting and monitoring heart rhythm disorders. Its services combine wearable electrocardiogram (ECG) devices with cloud-based data analysis and clinical reporting to help healthcare professionals assess patients for conditions such as cardiac arrhythmias. The company’s Zio product line includes wearable ECG monitors, such as Zio XT, which records a patient’s heart activity during an extended monitoring period. iRhythm also offers Zio AT, a monitoring service designed to provide clinicians with ECG data during the monitoring period.