Inspire Medical Systems (NYSE:INSP) Stock Price Down 7.5% Following Analyst Downgrade

Inspire Medical Systems, Inc. (NYSE:INSP)’s stock price fell 7.5% on Thursday after Truist Financial downgraded the stock from a buy rating to a hold rating. Truist Financial now has a $96.00 price target on the stock. Inspire Medical Systems traded as low as $86.12 and last traded at $88.99. 791,237 shares were traded during trading, a decline of 10% from the average session volume of 882,158 shares. The stock had previously closed at $96.20.

A number of other brokerages also recently commented on INSP. JPMorgan Chase & Co. boosted their target price on Inspire Medical Systems from $82.00 to $118.00 and gave the company a “neutral” rating in a research note on Tuesday, December 16th. Zacks Research upgraded Inspire Medical Systems from a “strong sell” rating to a “hold” rating in a report on Monday, October 27th. Evercore ISI lowered their price target on Inspire Medical Systems from $150.00 to $125.00 and set an “outperform” rating for the company in a research note on Tuesday, October 7th. Wolfe Research raised shares of Inspire Medical Systems from a “peer perform” rating to an “outperform” rating and set a $180.00 price objective on the stock in a research report on Tuesday, November 25th. Finally, Stifel Nicolaus set a $110.00 target price on shares of Inspire Medical Systems and gave the company a “buy” rating in a research note on Monday, November 24th. Nine equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Inspire Medical Systems currently has a consensus rating of “Hold” and a consensus price target of $138.47.

Insider Buying and Selling at Inspire Medical Systems

In related news, Director Shawn Mccormick sold 2,000 shares of the business’s stock in a transaction dated Friday, November 28th. The stock was sold at an average price of $127.48, for a total transaction of $254,960.00. Following the transaction, the director directly owned 26,046 shares in the company, valued at $3,320,344.08. The trade was a 7.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 4.10% of the company’s stock.

Key Stories Impacting Inspire Medical Systems

Here are the key news stories impacting Inspire Medical Systems this week:

• Positive Sentiment: Wells Fargo remains constructive, saying the company has long-term upside despite short-term reimbursement headwinds; the note provides some support that institutional investors view the issues as near-term. Read More.
• Positive Sentiment: Zacks argues investors should retain INSP, citing traction for the Inspire V device and management’s focus on balancing growth and near-term pressures — a counterpoint to the negative headlines. Read More.
• Neutral Sentiment: Truist downgraded INSP from Buy to Hold with a $96 price target, which still implies upside but signals reduced near-term conviction from that analyst. Read More.
• Neutral Sentiment: Oppenheimer lowered its rating from Outperform to Market Perform after the reimbursement concerns surfaced — another sign of cooling analyst enthusiasm even if not a full negative thesis. Read More.
• Negative Sentiment: CMS removed coverage for certain sleep-apnea therapy related to Inspire’s offering, a direct hit to expected reimbursement that materially increases near-term revenue risk and drove heavy selling pressure. Read More.
• Negative Sentiment: The Law Offices of Frank R. Cruz has opened an investigation into the company and board over disclosures and delays tied to the Inspire V launch, raising the possibility of shareholder litigation and related distraction/costs. Read More.
• Negative Sentiment: Mainstream coverage summarizes the sell-off and links it to the CMS decision, analyst downgrades, and litigation risk — broadening negative sentiment among retail and institutional holders. Read More.

Institutional Investors Weigh In On Inspire Medical Systems

A number of institutional investors have recently bought and sold shares of the business. Farther Finance Advisors LLC raised its position in Inspire Medical Systems by 14.6% in the second quarter. Farther Finance Advisors LLC now owns 603 shares of the company’s stock worth $78,000 after purchasing an additional 77 shares in the last quarter. New York State Teachers Retirement System grew its position in Inspire Medical Systems by 0.5% during the 2nd quarter. New York State Teachers Retirement System now owns 21,490 shares of the company’s stock worth $2,789,000 after acquiring an additional 100 shares during the last quarter. Xponance Inc. grew its position in Inspire Medical Systems by 2.9% during the 3rd quarter. Xponance Inc. now owns 4,177 shares of the company’s stock worth $310,000 after acquiring an additional 116 shares during the last quarter. Amalgamated Bank raised its position in Inspire Medical Systems by 1.3% in the 2nd quarter. Amalgamated Bank now owns 9,567 shares of the company’s stock valued at $1,242,000 after purchasing an additional 125 shares during the last quarter. Finally, Daiwa Securities Group Inc. boosted its stake in Inspire Medical Systems by 38.7% in the second quarter. Daiwa Securities Group Inc. now owns 466 shares of the company’s stock worth $60,000 after purchasing an additional 130 shares in the last quarter. Institutional investors and hedge funds own 94.91% of the company’s stock.

Inspire Medical Systems Price Performance

The business has a 50 day simple moving average of $106.07 and a 200 day simple moving average of $97.14. The company has a market cap of $2.31 billion, a price-to-earnings ratio of 53.97, a price-to-earnings-growth ratio of 8.10 and a beta of 0.72.

Inspire Medical Systems (NYSE:INSP) last released its quarterly earnings results on Monday, November 3rd. The company reported $0.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.15) by $0.53. The business had revenue of $224.50 million during the quarter, compared to analysts’ expectations of $220.39 million. Inspire Medical Systems had a return on equity of 9.41% and a net margin of 5.05%.The firm’s revenue for the quarter was up 10.5% compared to the same quarter last year. During the same period in the previous year, the business posted $0.60 earnings per share. As a group, sell-side analysts anticipate that Inspire Medical Systems, Inc. will post 2.16 earnings per share for the current fiscal year.

About Inspire Medical Systems

Inspire Medical Systems, Inc is a medical technology company specializing in implantable neurostimulation devices for the treatment of obstructive sleep apnea (OSA). The company’s flagship offering, the Inspire® system, delivers targeted stimulation of the hypoglossal nerve to maintain airway patency during sleep, providing an alternative therapy for patients who are intolerant of or inadequately managed by continuous positive airway pressure (CPAP) devices.

The Inspire system comprises an implantable pulse generator, a sensing lead that monitors breathing patterns, and a stimulation lead that activates the hypoglossal nerve.