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iRhythm technologies CEO Blackford sells $1.25 million in stock

Published 05/11/2024, 18:02
IRTC
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SAN FRANCISCO—Blackford Quentin S., the President and CEO of iRhythm Technologies, Inc. (NASDAQ:IRTC), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Blackford sold 16,145 shares of common stock on November 4, 2024, at an average price of $77.41 per share, totaling approximately $1.25 million.

This transaction was executed to cover tax withholding and remittance obligations related to the vesting of Restricted Stock Units, as noted in the filing. Following this sale, Blackford retains direct ownership of 159,929 shares in iRhythm Technologies.

In an earlier transaction on May 31, 2024, Blackford acquired 280 shares under the company's Employee Stock Purchase Plan, valued at $20,994, with each share priced at $74.98. This acquisition was exempt from certain regulatory requirements, as specified in the filing.

iRhythm Technologies, headquartered in San Francisco, specializes in developing medical instruments and apparatus, including wearable biosensors and cloud-based data analytics.

In other recent news, iRhythm Technologies Inc (NASDAQ:IRTC). has reported an 18.4% year-over-year increase in revenue for the third quarter of 2024, reaching $147.5 million. The company's CEO, Quentin Blackford, underscored the commitment to quality and regulatory compliance, following a warning letter from the FDA in 2023. Despite regulatory delays for its next-generation Zio MCT system, iRhythm has reached significant milestones, including the registration of over 1 million patients and an expansion into international markets.

In addition to these developments, the digital healthcare company has entered into a technology licensing agreement with BioIntelliSense, aiming to enhance its cardiac monitoring solutions. On the financial front, iRhythm has narrowed its 2024 revenue outlook to between $582.5 million and $587.5 million and anticipates unit volume growth to exceed 20% by 2025.

However, the company reported an adjusted net loss of approximately $39.2 million and a delay in Zio MCT product submission to the FDA until the third quarter of 2025. Despite these challenges, the company maintains a strong financial position with approximately $522 million in cash and investments. These are among the recent developments at iRhythm Technologies Inc., as the company continues to navigate regulatory challenges while focusing on growth and innovation.

InvestingPro Insights

To provide additional context to Blackford Quentin S.'s recent stock transactions, it's worth examining some key financial metrics and analyst insights for iRhythm Technologies (NASDAQ:IRTC).

According to InvestingPro data, iRhythm Technologies has a market capitalization of $2.66 billion, reflecting its position in the medical instruments and apparatus sector. The company has demonstrated strong revenue growth, with an 18.45% increase in the last twelve months as of Q3 2024, reaching $560.02 million. This growth aligns with the company's focus on innovative wearable biosensors and cloud-based analytics.

Despite the revenue growth, iRhythm Technologies is currently not profitable, with a negative operating income of $96.39 million in the last twelve months. This financial situation is reflected in two key InvestingPro Tips: analysts do not anticipate the company will be profitable this year, and it has not been profitable over the last twelve months.

However, it's important to note that the company operates with a moderate level of debt and its liquid assets exceed short-term obligations, suggesting a relatively stable financial position despite the lack of profitability. This could explain why Blackford, as CEO, maintains a significant stake in the company even after the recent sale.

The stock has shown strong performance in the short term, with InvestingPro data indicating a 29.87% price return over the last month and a 15.08% return over the last three months. This recent uptrend might have influenced the timing of Blackford's stock sale, although it was primarily to cover tax obligations.

For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for iRhythm Technologies, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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