Insider Trading February 25, 2026

iRhythm EVP Disposes $103K in Shares as Stock Dips; Firm Posts Strong Q4 Results

Mervin Smith sold 732 shares under a 10b5-1 plan as iRhythm reports revenue beat and issues 2026 guidance

By Hana Yamamoto IRTC
iRhythm EVP Disposes $103K in Shares as Stock Dips; Firm Posts Strong Q4 Results
IRTC

Mervin Smith, Executive Vice President of Strategic Business Operations at iRhythm Holdings, sold 732 shares of the company on February 24, 2026, generating proceeds of $103,146 under a Rule 10b5-1 trading plan. The transaction came amid a roughly 14.5% one-week decline in the stock, which was trading at $135.85 at the time of reporting. iRhythm also disclosed strong fourth-quarter results, including $208.9 million in revenue and its first positive GAAP net income, and provided 2026 guidance pointing to mid-teens revenue growth and an improved adjusted EBITDA margin.

Key Points

  • Executive Vice President Mervin Smith sold 732 shares of iRhythm on February 24, 2026, for $140.91 per share, netting $103,146.
  • The sale was executed under a Rule 10b5-1 trading plan established on November 19, 2025; Smith retains 15,106 shares after the transaction.
  • iRhythm reported fourth-quarter revenue of $208.9 million, a 27.1% year-over-year increase, positive GAAP net income, and adjusted EBITDA of $34.3 million.
  • Analysts at Truist Securities and Canaccord Genuity lowered price targets to $200 and $198 while keeping Buy ratings; Morgan Stanley reiterated Overweight with a $205 target.

Mervin Smith, who serves as Executive Vice President Strategic Business Operations at iRhythm Holdings, Inc. (NASDAQ: IRTC), executed a sale of 732 shares of common stock on February 24, 2026, at a price of $140.91 per share. The transaction produced total proceeds of $103,146, according to a Form 4 filing with the Securities and Exchange Commission.

The filing specifies the sale was carried out pursuant to a Rule 10b5-1 trading plan that Smith established on November 19, 2025. After the disposition, Smith's direct ownership in iRhythm Holdings stands at 15,106 shares.

The stock has experienced recent weakness: shares declined 14.5% over the past week and were trading at $135.85 when the sale was reported. Separately, InvestingPro analysis cited in the filing indicates the shares appear overvalued at current levels.


iRhythm's most recent quarterly performance provided context to the insider sale. The company reported fourth-quarter revenue of $208.9 million, a year-over-year increase of 27.1%, and outpaced consensus revenue expectations by roughly 4%. Management attributed the stronger top-line showing to momentum behind ZioAT and gains with channel partners.

In that quarter, iRhythm recorded positive GAAP net income for the first time and reported adjusted EBITDA of $34.3 million. Following the preliminary results, several research firms updated their views: Truist Securities and Canaccord Genuity trimmed their price targets to $200 and $198 respectively while leaving Buy ratings intact. Morgan Stanley reaffirmed an Overweight rating with a $205 price target.

Looking to 2026, iRhythm projected revenue between $870 million and $880 million, implying growth of 17% to 18% year over year. The company also forecast an adjusted EBITDA margin in the range of approximately 11.5% to 12.5% for 2026.


For investors seeking additional company-level analysis, the filing notes the availability of a detailed Pro Research Report on InvestingPro that covers iRhythm alongside more than 1,400 other U.S. equities.

Risks

  • The stock declined 14.5% over the past week, indicating short-term price volatility that could affect investor returns - impacts financial markets and equity investors.
  • InvestingPro analysis flags the shares as appearing overvalued at current prices, which presents valuation risk for prospective buyers - impacts equity valuation and market sentiment.
  • Analyst price target reductions from Truist Securities and Canaccord Genuity may reflect tempered near-term expectations for the stock, creating potential downside pressure - impacts sell-side coverage and investor outlook.

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