IRTC Should I Buy
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iRhythm Holdings, Inc. (IRTC) is not an ideal buy for a beginner, long-term investor at this moment. While the company has shown strong revenue growth, its declining net income and EPS, bearish technical indicators, and lack of significant positive catalysts suggest waiting for a better entry point. Additionally, hedge fund selling and a lack of recent influential trading activity further dampen the stock's immediate appeal.
The technical indicators are bearish. The MACD histogram is below 0 and negatively contracting, RSI is neutral at 27.923, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). Key support is at 122.397, and resistance is at 139.667. The stock is trading below its pivot level, signaling weakness.
The company delivered strong Q4 revenue growth of 27.12% YoY, driven by ZioAT performance and innovative channel partnerships. Analysts maintain mostly positive ratings, with several firms reiterating Buy or Outperform ratings despite slight price target reductions.
Hedge funds are selling, with a 281.11% increase in selling activity over the last quarter. The company is under a civil investigative demand from the Department of Justice, which could weigh on sentiment. Net income and EPS have significantly declined, and the stock's technical indicators are bearish.
In Q4 2025, revenue increased by 27.12% YoY to $208.89M, but net income dropped by -518.53% YoY to $5.58M, and EPS fell by -525.00% YoY to 0.17. Gross margin improved slightly to 70.88%, up 1.23% YoY.
Analysts have lowered price targets recently but maintain mostly positive ratings. Truist, Baird, JPMorgan, and Canaccord have Buy or Outperform ratings, while Goldman Sachs maintains a Neutral rating. Price targets range from $184 to $215, reflecting cautious optimism but acknowledging some industry challenges and multiple compression.
