5 Reddit Stocks that Flopped in 2021

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1. iRhythm Technologies, Inc. (NASDAQ:IRTC)

Number of Hedge Fund Holders: 27     

Year-to-Date Decline in Share Price: 58%

iRhythm Technologies, Inc. (NASDAQ:IRTC) is a digital healthcare company based in California. The company has had a mixed year so far with regards to earnings. A major dent in the share prices was caused earlier this year by the release of Medicare reimbursement rates that were below expectations.

Citi analyst Joanne Wuensch has a Neutral rating on iRhythm Technologies, Inc. (NASDAQ:IRTC) stock with a price target of $120. The company has a market cap of $2.9 billion and posted $265 million in revenue last year. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in iRhythm Technologies, Inc. (NASDAQ:IRTC) with 615,715 shares worth more than $36 million.  

In its Q2 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and iRhythm Technologies, Inc. (NASDAQ:IRTC) was one of them. Here is what the fund said: 

“Last quarter, we discussed our decision to meaningfully reduce our position size in iRhythm Technologies after Medicare Administrative Contractor (MAC) Novitas announced a dramatic reimbursement cut for the company’s Zio cardiac monitor. In early April, Novitas revisited its decision and announced it was increasing the reimbursement rate. Unfortunately, the new price still falls significantly below our expectations, and iRhythm also announced it would no longer provide Zio services to Medicare fee-for-service patients (25% of the company’s revenue). While we believe the Zio is a substantial upgrade from the Holter monitor given its smaller size and algorithm-based analytics, we decided to end our investment campaign shortly after the announcement in April given our lack of visibility into the profit cycle.”

You can also take a peek at 15 Best High Volume Stocks to Buy Now and 10 Best Up and Coming Stocks to Invest In.

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