TheStreet
It's time to buy shares of iRhythm Technologies (IRTC), before the banks that underwrote its IPO begin issuing research reports on the stock.
Strong Management
Since July 2012, Kevin King has served as CEO of iRhythm. King has nearly 30 years of experience in leadership roles in the IT and health care industries. Previously, he was CEO Affymetrix which makes genetic-analysis systems, and before that, CEO of Thomson Healthcare, an information services business focused on health care-related businesses.
Matthew Garrett has served as CFO of IRTC since January 2013. Prior to joining the company, Garrett served as CFO of Navigenics, director of business development at Corventis and chief accounting officer and treasurer for Cogentus Pharmaceuticals.
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IPO Performance
iRhythm Technologies priced its Oct. 19 IPO at $17, above the initial price range of $13 to $15.
Demand was strong, and the company, which originally planned to offer only 5.4 million shares, wound up offering 6.3 million.
The stock jumped 53% on its first day of trading, to $26.05. Although it has fallen 11% since then, to $23.30, it's still significantly above the $17 level.
Strong Underwriters
When iRhythm Technologies' strong set of underwriters are finally able to release reports, the market will be watching and listening to their recommendations. The joint bookrunners for the deal are Morgan Stanley and J.P. Morgan. Additional underwriters for the deal include Canaccord Genuity and BTIG.
Strong Investment Ahead of Quiet Period Expiration
iRhythm Technologies is growing revenue significantly faster than its competitors and is well positioned for continued growth in the large and expanding ambulatory cardiac monitoring market.
The company is backed by several notable venture capital firms, as well as a strong team of underwriters.
We expect its underwriters will be eager to release detailed positive reports at the expiration of the upcoming quiet period which will likely lead to a jump in share price.
iRhythm Technologies' quiet period will end on Nov. 14, and investors should build a long position in the stock before that date. Hold shares through the release of the reports and sell shares on Nov. 15.
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This article is commentary by an independent contributor. At the time of publication, the author held shares of IRTC.