IRTC Should I Buy
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iRhythm Holdings, Inc. (IRTC) does not present a strong buy opportunity for a beginner, long-term investor at this time. While the company shows strong revenue growth, the negative financial performance, bearish technical indicators, and lack of significant positive catalysts suggest holding off on investment until further clarity or improvement in fundamentals and market sentiment.
The technical indicators are bearish. The MACD is below zero and negatively contracting, the RSI is neutral at 38.001, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 146.292, with resistance at 152.967. This suggests limited upward momentum in the short term.
Revenue growth of 30.74% YoY in Q3 2025 and a strong gross margin of 71.09% indicate operational efficiency and potential for long-term growth. Analysts have raised price targets recently, with some upgrades to Outperform.
Net income dropped significantly (-88.71% YoY), and EPS declined (-89.19% YoY), reflecting poor profitability. Hedge funds are selling heavily, and there are no recent insider purchases or congress trading data to indicate confidence in the stock. Additionally, technical indicators and options data suggest bearish sentiment.
In Q3 2025, revenue increased by 30.74% YoY to $192.88M, but net income dropped by 88.71% YoY to -$5.21M, and EPS fell by 89.19% YoY to -$0.16. Gross margin improved to 71.09%, up 3.36% YoY, showing operational efficiency despite profitability challenges.
Analysts have mixed views. Recent upgrades and raised price targets (e.g., Evercore ISI to $210 and Goldman Sachs to $211) indicate optimism for 2026. However, some analysts have lowered price targets (e.g., Truist to $215 from $230), reflecting cautious sentiment. Overall, the consensus leans towards cautious optimism but not a strong buy.
