Breaking Down iRhythm Technologies: 6 Analysts Share Their Views

Ratings for iRhythm Technologies IRTC were provided by 6 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $119.83, a high estimate of $152.00, and a low estimate of $86.00. This upward trend is evident, with the current average reflecting a 11.78% increase from the previous average price target of $107.20.

Interpreting Analyst Ratings: A Closer Look

In examining recent analyst actions, we gain insights into how financial experts perceive iRhythm Technologies. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to iRhythm Technologies. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of iRhythm Technologies compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of iRhythm Technologies's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of iRhythm Technologies's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on iRhythm Technologies analyst ratings.

Unveiling the Story Behind iRhythm Technologies

iRhythm Technologies Inc is a commercial-stage digital healthcare company redefining the way cardiac arrhythmias are clinically diagnosed by combining wearable biosensing technology with cloud-based data analytics and machine-learning capabilities. The company's portfolio includes ambulatory cardiac monitoring services on a platform, called the Zio service, which combines an easy-to-wear and unobtrusive biosensor that can be worn for several days with powerful proprietary algorithms that distill data from millions of heartbeats into clinically actionable information. The company derived its revenue from the United States.

Unraveling the Financial Story of iRhythm Technologies

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: iRhythm Technologies displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 18.41%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: iRhythm Technologies's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -31.3%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -54.03%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): iRhythm Technologies's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -5.05%, the company may face hurdles in achieving optimal financial returns.

Debt Management: iRhythm Technologies's debt-to-equity ratio is notably higher than the industry average. With a ratio of 10.25, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: What Are They?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.