Investor Short Report Flags Steep Downside Risk For iRhythm Technologies

Spruce Point Capital Management issued a detailed report on iRhythm Technologies, Inc. (NASDAQ:IRTC) on Monday, projecting a long-term downside risk of 40% to 70% for its stock.

The short-seller argued that investors are overlooking regulatory, competitive, and management challenges that could undermine the company's market position.

What Is iRhythm?

The medical technology firm, best known for its Zio line of wearable cardiac monitors, launched its first device, the Zio XT, in 2009.

This long-term cardiac monitor, now branded as Zio Monitor, records heart activity for up to 14 days. It has since secured roughly 70% of the extended wear monitoring market.

In 2019, iRhythm introduced the Zio AT, which included cellular transmission capabilities to alert doctors in near real time of potential cardiac events.

While promoted as a major step forward, the product has faced regulatory scrutiny ...