Inspire Medical Systems (NYSE:INSP) Reaches New 1-Year Low - Here's Why

Key Points

• Inspire Medical Systems shares hit a new 52-week low at $73.00, significantly down from a previous closing of $75.61, with a trading volume of 378,307 shares.
• Several analysts have revised their ratings and price targets for the stock, with a current average rating of "Moderate Buy" and an average target price of $154.43.
• The company announced a $200 million share buyback program, indicating that the board believes its shares are undervalued.

Inspire Medical Systems, Inc. (NYSE:INSP - Get Free Report)'s share price reached a new 52-week low on Tuesday . The stock traded as low as $73.00 and last traded at $73.35, with a volume of 378307 shares trading hands. The stock had previously closed at $75.61.

Analyst Ratings Changes

INSP has been the topic of several research reports. Truist Financial reiterated a "hold" rating and issued a $125.00 price objective (down previously from $190.00) on shares of Inspire Medical Systems in a research note on Tuesday, August 5th. UBS Group set a $89.00 price objective on shares of Inspire Medical Systems and gave the company a "neutral" rating in a research note on Monday, September 22nd. KeyCorp lowered shares of Inspire Medical Systems from an "overweight" rating to a "sector weight" rating in a research note on Tuesday, August 5th. Morgan Stanley reduced their price objective on shares of Inspire Medical Systems from $200.00 to $182.00 and set an "overweight" rating for the company in a research note on Tuesday, July 15th. Finally, Stifel Nicolaus set a $140.00 price target on Inspire Medical Systems and gave the stock a "hold" rating in a research report on Tuesday, August 5th. Seven research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $154.43.

Inspire Medical Systems Price Performance

The stock's 50 day simple moving average is $93.61 and its two-hundred day simple moving average is $126.80. The stock has a market cap of $2.18 billion, a price-to-earnings ratio of 42.55, a P/E/G ratio of 2.41 and a beta of 1.15.

Inspire Medical Systems (NYSE:INSP - Get Free Report) last posted its quarterly earnings results on Monday, August 4th. The company reported $0.45 earnings per share for the quarter, topping analysts' consensus estimates of $0.22 by $0.23. Inspire Medical Systems had a net margin of 6.17% and a return on equity of 10.38%. The firm had revenue of $217.09 million for the quarter, compared to the consensus estimate of $214.50 million. During the same quarter in the previous year, the company earned $0.32 earnings per share. The business's revenue was up 10.8% compared to the same quarter last year. Inspire Medical Systems has set its FY 2025 guidance at 0.400-0.500 EPS. As a group, analysts predict that Inspire Medical Systems, Inc. will post 2.16 earnings per share for the current year.

Inspire Medical Systems announced that its board has authorized a share buyback program on Monday, August 11th that allows the company to buyback $200.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 8.6% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Inspire Medical Systems news, CFO Richard Buchholz sold 11,000 shares of Inspire Medical Systems stock in a transaction on Friday, August 29th. The stock was sold at an average price of $93.39, for a total transaction of $1,027,290.00. Following the completion of the transaction, the chief financial officer directly owned 44,867 shares of the company's stock, valued at approximately $4,190,129.13. This trade represents a 19.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 2.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Dragoneer Investment Group LLC lifted its holdings in shares of Inspire Medical Systems by 81.4% during the second quarter. Dragoneer Investment Group LLC now owns 2,354,411 shares of the company's stock valued at $305,532,000 after acquiring an additional 1,056,808 shares during the period. Wasatch Advisors LP grew its holdings in shares of Inspire Medical Systems by 7.2% during the second quarter. Wasatch Advisors LP now owns 1,634,395 shares of the company's stock worth $212,095,000 after purchasing an additional 110,288 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Inspire Medical Systems by 214.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,112,925 shares of the company's stock worth $177,267,000 after buying an additional 759,090 shares in the last quarter. State Street Corp grew its holdings in Inspire Medical Systems by 2.3% during the 2nd quarter. State Street Corp now owns 1,030,902 shares of the company's stock worth $133,780,000 after acquiring an additional 22,843 shares during the last quarter. Finally, Invesco Ltd. raised its stake in shares of Inspire Medical Systems by 8.3% in the first quarter. Invesco Ltd. now owns 858,572 shares of the company's stock worth $136,753,000 after acquiring an additional 65,492 shares during the last quarter. 94.91% of the stock is owned by institutional investors.

About Inspire Medical Systems

Inspire Medical Systems, Inc, a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA) in the United States and internationally. The company offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe OSA.

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