Investors have a chance to profit from the end of the quiet period following iRhythm Technologies' (IRTC) initial public offering.
When that period ends on Nov. 14, analysts at the Wall Street banks that underwrote the IPO will be allowed to initiate ratings on the stock and issue research reports on it. This is bound to give the stock a boost.
Investors should buy shares now and ride the anticipation about the release of these reports higher. They should hold shares through the actual release of these reports and then sell them after the reports are released on Nov. 15.
iRhythm Technologies makes a lightweight, easy-to-wear digital heart monitor that detects arrhythmias. Since iRhythm received clearance by the U.S. Food and Drug Administration in 2009, it has served more than 500,000 patients. The San Francisco-based company was founded in 2006.
This company has had impressive revenue growth. Revenue increased 66.35% between 2014 and 2015, and 79.8% between the six months ended June 30, 2015 and 2016. Its gross margin has also increased. The company recorded gross margins of 57% and 66% for the last six months ended June 30, 2015, and the last six months ended June 30, 2016, respectively. This increase was driven largely by the company's efforts to lower manufacturing costs, and reduce labor costs through algorithm improvements. As of June 30, 2016, the company had an accumulated deficit of $116.8 million.