Stock Buyback Program Authorized by iRhythm Technologies (NASDAQ:IRTC)

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

iRhythm Technologies Stock Performance

NASDAQ IRTC traded up $4.88 on Thursday, reaching $93.56. The stock had a trading volume of 1,390,277 shares, compared to its average volume of 928,925. The company has a debt-to-equity ratio of 3.68, a quick ratio of 3.45 and a current ratio of 3.57. iRhythm Technologies has a 12-month low of $82.85 and a 12-month high of $192.47. The business’s 50-day moving average price is $112.41 and its 200 day moving average price is $120.23. The stock has a market cap of $3.15 billion, a P/E ratio of 66.18 and a beta of 1.39.

iRhythm Technologies (NASDAQ:IRTC) last released its quarterly earnings results on Thursday, November 5th. The company reported $0.82 EPS for the quarter, beating the consensus estimate of $0.02 by $0.80. iRhythm Technologies had a negative net margin of 4.52% and a positive return on equity of 26.88%. The firm had revenue of $221.59 million during the quarter, compared to the consensus estimate of $222.23 million. During the same quarter in the prior year, the firm earned ($0.06) EPS. iRhythm Technologies’s revenue for the quarter was up 14.9% on a year-over-year basis. As a group, equities analysts expect that iRhythm Technologies will post 0.79 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on IRTC. Needham & Company LLC decreased their price target on shares of iRhythm Technologies from $194.00 to $165.00 and set a “buy” rating for the company in a research note on Friday, November 6th. Citigroup downgraded shares of iRhythm Technologies from a “buy” rating to a “neutral” rating and dropped their price objective for the company from $157.00 to $124.00 in a research report on Friday, November 6th. Truist Financial reduced their price objective on shares of iRhythm Technologies from $168.00 to $140.00 and set a “buy” rating on the stock in a report on Monday. Weiss Ratings upgraded shares of iRhythm Technologies from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, October 27th. Finally, Stephens decreased their price objective on shares of iRhythm Technologies from $160.00 to $120.00 and set an “overweight” rating for the company in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $164.07.

iRhythm Technologies Company Profile

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.