IRTC Should I Buy
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iRhythm Holdings, Inc. (IRTC) is not a strong buy for a beginner, long-term investor at this time. While the company has shown strong revenue growth and positive developments in international markets, the technical indicators are bearish, and there are concerns regarding insider and hedge fund selling, as well as ongoing DOJ investigations. The lack of strong trading signals and mixed analyst sentiment further support a cautious approach.
The technical indicators show a bearish trend. The MACD is below 0 and negatively contracting, RSI is neutral at 39.221, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below the pivot support level of 148.018, with key support at 136.088 and resistance at 159.948.
Strong Q4 revenue growth of 27.1% YoY.
First positive net income of $5.6 million.
Expansion into international markets with significant growth in the U.K.
Positive 2026 revenue guidance of $870M-$880M with adjusted EBITDA margins of 11.5%-12.5%.
Insider selling increased by 1948.91% in the last month, and hedge fund selling increased by 281.11% in the last quarter.
DOJ investigation related to a previously disclosed subpoena.
Analysts have lowered price targets, citing multiple compression and external risks.
Weak technical indicators and bearish price action.
In Q4 2025, revenue increased by 27.12% YoY to $208.9M. However, net income dropped by -518.53% YoY to $5.6M, and EPS declined by -525.00% YoY to $0.17. Gross margin improved slightly to 70.88%, up 1.23% YoY.
Analyst sentiment is mixed. While firms like Truist, Baird, and Canaccord maintain Buy or Outperform ratings, they have lowered price targets due to multiple compression and DOJ-related risks. Goldman Sachs maintains a Neutral rating, and William Blair suggests buying on weakness due to the DOJ investigation being part of an older subpoena.
