Executive Vice President of Strategic Business Operations at iRhythm Holdings, Inc. (NASDAQ:IRTC), Mervin Smith, completed a sale of company shares on February 25, 2026, according to a Securities and Exchange Commission Form 4 filing. Smith sold 4,041 shares of common stock at $135.42 per share, generating proceeds of $547,227.
The sale comes against a backdrop of mixed price movement for the stock year-to-date. iRhythm shares have fallen 21% so far this year and were trading at $140.06 at the time the sale was reported. InvestingPro analysis cited in the filing indicates the shares appear overvalued at current levels, trading well above their Fair Value.
Those sale proceeds follow a separate, related transaction disclosed in the filing. On February 24, 2026, Smith acquired 9,210 shares of iRhythm common stock at no cost. The filing notes the shares were issued in connection with the vesting of performance Restricted Stock Units that had been granted on August 11, 2023. The Compensation & Human Capital Management Committee of iRhythm’s Board of Directors determined that the applicable performance conditions had been met, triggering the vesting event.
After the February transactions, Smith is recorded as directly owning 20,275 shares of iRhythm common stock.
Company performance and analyst reactions
Separately, iRhythm reported robust fourth-quarter results that the company said exceeded consensus estimates by roughly 4%. The company recorded quarterly revenue of $208.9 million, representing a 27.1% increase year-over-year, and reported positive GAAP net income for the first time.
Following those results, several sell-side firms adjusted their price targets while maintaining favorable ratings. Truist Securities and Canaccord Genuity lowered their price targets to $200 and $198, respectively, while retaining Buy ratings. Morgan Stanley reiterated an Overweight rating and kept a $205 price target after reviewing preliminary results.
iRhythm also provided forward-looking guidance tied to its operational momentum. The company said it expects to exceed its revenue guidance for 2025, citing record unit volume in the fourth quarter as a contributing factor. For 2026, management forecasted revenue growth of 17% to 18%, projecting revenues in the range of $870 million to $880 million, and anticipates an adjusted EBITDA margin of approximately 11.5% to 12.5%.
Context for investors
The Form 4 disclosure documents both an executive sale and an accompanying vesting of performance-based equity, leaving Smith with a substantive retained stake of over 20,000 shares. For investors seeking additional detail on executive transactions and broader company analysis, iRhythm’s Pro Research Report is available through InvestingPro alongside coverage of more than 1,400 other U.S. equities, as noted in the filing.
While the insider sale and vesting are clearly documented in regulatory filings, the company’s recent operating results and guidance present a mixed picture: outsized top-line growth and a return to GAAP profitability for the quarter, set against analyst reductions in target prices and an InvestingPro view that the stock is trading above fair value.
Investors and market participants assessing iRhythm’s shares may weigh the executive transaction and vested equity alongside the reported revenue trajectory, revised analyst targets, and the company’s 2026 financial outlook.