What’s Happening With iRhythm Technologies Stock?

by Trefis Team
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The stock price of iRhythm Technologies (NASDAQ:IRTC), a healthcare company that provides ambulatory electrocardiogram (ECG) and cardiac monitoring products, has seen a rise of 27% over the last one month (twenty-one trading days). This can be attributed to the company’s announcement of new CEO – Quentin Blackford – who was earlier the COO of Dexcom. Markets welcomed this change in hopes that the company may have better growth prospects under Quentin’s leadership, given his track record with Dexcom. Despite the recent rise, IRTC stock is down nearly 75% year-to-date, mostly due to setbacks the company has faced for Medicare reimbursement rates for some of its offerings. 

But now that IRTC stock has seen a 27% rise over the last month or so, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a high chance of continued gains in IRTC stock over the next month. Out of 73 instances in the last five years that IRTC stock saw a twenty-one day rise of 27% or more, 51 of them resulted in IRTC stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 51 out of 84, or about a 70% chance of a rise in IRTC stock over the coming month, implying that the stock may continue to rise in the near term. See our analysis on iRhythm Stock Chance of Rise for more details.

So, if this follows historical performance, it is likely that IRTC stock will continue to rise going forward. Also, iRhythm Stock Return summarizes IRTC stock performance and chances of its rise or decline, among other metrics that matter.

Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last five years data

  • After moving -5.6% or more over a five-day period, the stock rose in the next five days on 57% of the occasions.
  • After moving -8.8% or more over a ten-day period, the stock rose in the next ten days on 59% of the occasions
  • After moving 27% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 70% of the occasions.

Predict average return on iRhythm Technologies (IRTC) Stock Return: AI Predicts IRTC Average and Excess Return After a Fall or Rise

iRhythm Technologies (IRTC) Stock Return (Recent) Comparison With Peers And S&P500

  • Five-Day Return: GE highest at 5.6%; IRTC lowest at -5.6%
  • Ten-Day Return: GPRO highest at 4.2%; IRTC lowest at -8.8%
  • Twenty-One Day Return: IRTC highest at 27%; SPY lowest at -0.8%

While IRTC stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Medtronic vs. Logitech.

 

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