Inspire Medical Systems' (INSP) "Neutral" Rating Reiterated at Bank of America

Key Points

• Bank of America reiterated a "neutral" rating on Inspire with a $53 price target, implying roughly a 3.2% downside from the stock's current price.
• Inspire beat Q1 expectations (EPS $0.10 vs. -$0.28 est., revenue $204.6M vs. $200.0M) but materially lowered FY2026 guidance to $825M–$875M and EPS $0.75–$1.25, citing reimbursement/coding headwinds and WISeR disruption, which triggered a market pullback.
• The consensus rating is "Hold" (15 holds, 4 buys, 1 sell) with a MarketBeat consensus target of $95.72, and institutional ownership is very high (~94.9%) after several large fund position changes.

Inspire Medical Systems (NYSE:INSP - Get Free Report)'s stock had its "neutral" rating reiterated by equities research analysts at Bank of America in a note issued to investors on Tuesday, MarketBeat.com reports. They currently have a $53.00 price target on the stock. Bank of America's price objective would suggest a potential downside of 3.22% from the company's current price.

Other research analysts have also recently issued research reports about the stock. Robert W. Baird set a $74.00 target price on shares of Inspire Medical Systems and gave the stock a "neutral" rating in a report on Thursday, February 12th. Wells Fargo & Company set a $70.00 price objective on Inspire Medical Systems and gave the company an "equal weight" rating in a research note on Thursday, February 12th. Zacks Research downgraded Inspire Medical Systems from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 14th. Truist Financial decreased their target price on shares of Inspire Medical Systems from $70.00 to $64.00 and set a "hold" rating for the company in a research report on Wednesday, April 15th. Finally, Morgan Stanley set a $60.00 target price on shares of Inspire Medical Systems in a research report on Wednesday, February 18th. Four research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Inspire Medical Systems currently has a consensus rating of "Hold" and a consensus target price of $95.72.

Inspire Medical Systems Stock Down 3.4%

INSP opened at $54.77 on Tuesday. Inspire Medical Systems has a twelve month low of $48.30 and a twelve month high of $163.35. The company has a 50-day simple moving average of $56.73 and a 200 day simple moving average of $79.64. The stock has a market capitalization of $1.58 billion, a price-to-earnings ratio of 11.00, a P/E/G ratio of 2.92 and a beta of 0.83.

Inspire Medical Systems (NYSE:INSP - Get Free Report) last posted its quarterly earnings data on Monday, May 4th. The company reported $0.10 earnings per share for the quarter, topping the consensus estimate of ($0.28) by $0.38. The business had revenue of $204.58 million during the quarter, compared to analysts' expectations of $200.04 million. Inspire Medical Systems had a net margin of 15.95% and a return on equity of 10.96%. Inspire Medical Systems's revenue was up 1.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.10 earnings per share. Inspire Medical Systems has set its FY 2026 guidance at 0.750-1.250 EPS. Sell-side analysts anticipate that Inspire Medical Systems will post 1.82 EPS for the current fiscal year.

Hedge Funds Weigh In On Inspire Medical Systems

A number of institutional investors and hedge funds have recently modified their holdings of the business. Wellington Management Group LLP bought a new position in shares of Inspire Medical Systems during the 4th quarter worth approximately $203,929,000. Wasatch Advisors LP boosted its holdings in shares of Inspire Medical Systems by 7.2% during the 2nd quarter. Wasatch Advisors LP now owns 1,634,395 shares of the company's stock worth $212,095,000 after buying an additional 110,288 shares in the last quarter. William Blair Investment Management LLC boosted its holdings in shares of Inspire Medical Systems by 68.7% during the 3rd quarter. William Blair Investment Management LLC now owns 1,297,573 shares of the company's stock worth $96,280,000 after buying an additional 528,404 shares in the last quarter. Morgan Stanley boosted its holdings in shares of Inspire Medical Systems by 179.5% during the 4th quarter. Morgan Stanley now owns 1,259,762 shares of the company's stock worth $116,188,000 after buying an additional 809,121 shares in the last quarter. Finally, Deerfield Management Company L.P. boosted its holdings in shares of Inspire Medical Systems by 648.4% during the 3rd quarter. Deerfield Management Company L.P. now owns 1,047,694 shares of the company's stock worth $77,739,000 after buying an additional 907,694 shares in the last quarter. 94.91% of the stock is currently owned by institutional investors.

Key Stories Impacting Inspire Medical Systems

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

• Positive Sentiment: Q1 beat on EPS and revenue: Inspire reported $0.10 EPS (vs. expectations for a loss) and $204.6M in revenue, a modest year-over-year increase and slightly above consensus — shows underlying procedure demand held up in the quarter. Read More.
• Neutral Sentiment: Earnings call and details: Management discussed operational drivers and the timing impact of reimbursement/coding headwinds and the WISeR disruption — useful for modeling cadence but contained no offsetting near-term revenue levers. Read More.
• Negative Sentiment: Guidance cut materially lowers FY26 targets: Inspire lowered FY2026 revenue guidance to $825M–$875M and EPS to $0.75–$1.25, well below consensus — the reset is the main driver of the trader reaction and forces downward revisions to FY26 models. Read More.
• Negative Sentiment: Reimbursement/coding and WISeR disruption cited as causes: Management specifically blamed coding changes and disruption related to WISeR (workflow/servicing) for reduced procedure volumes and reimbursement uncertainty — this raises execution and policy risk until coding/reimbursement pathways normalize. Read More.
• Negative Sentiment: Market reaction and coverage: Media and market reports noted the sharp intraday pullback after guidance — highlights how the guidance reset dominated the beat and forced rapid re-pricing. Read More.

Inspire Medical Systems Company Profile

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.

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