Inspire Medical Systems (NYSE:INSP) Shares Down 4.8% Following Insider Selling

Key Points

• Inspire Medical Systems' stock price dropped 4.8% on Wednesday, trading as low as $92.64 after insider selling by CFO Richard Buchholz, who sold 11,000 shares worth over $1 million.
• Multiple analysts have reduced their target prices for Inspire Medical, with RBC lowering it from $215 to $180 and Truist decreasing it from $190 to $125, while maintain a "hold" rating on the stock.
• The company has recently initiated a $200 million stock buyback program, indicating that it believes its shares are undervalued, and it reported a positive quarterly earnings with $0.45 EPS, exceeding expectations.

Inspire Medical Systems, Inc. (NYSE:INSP - Get Free Report)'s stock price fell 4.8% on Wednesday following insider selling activity. The stock traded as low as $92.64 and last traded at $90.02. 21,913 shares traded hands during mid-day trading, a decline of 97% from the average session volume of 684,502 shares. The stock had previously closed at $94.51.

Specifically, CFO Richard Buchholz sold 11,000 shares of the 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 in the company, valued at $4,190,129.13. This represents a 19.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the company. Royal Bank Of Canada lowered their target price on Inspire Medical Systems from $215.00 to $180.00 and set an "outperform" rating for the company in a research note on Tuesday, August 5th. Truist Financial restated a "hold" rating and issued a $125.00 target price (down from $190.00) on shares of Inspire Medical Systems in a research note on Tuesday, August 5th. JPMorgan Chase & Co. lowered Inspire Medical Systems from an "overweight" rating to a "neutral" rating and lowered their target price for the company from $195.00 to $110.00 in a research note on Tuesday, August 5th. Stifel Nicolaus set a $140.00 target price on Inspire Medical Systems and gave the company a "hold" rating in a research note on Tuesday, August 5th. Finally, UBS Group set a $230.00 price target on Inspire Medical Systems and gave the company a "buy" rating in a report on Tuesday, August 5th. Eight analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, Inspire Medical Systems has an average rating of "Moderate Buy" and a consensus target price of $164.50.

Inspire Medical Systems Stock Down 5.8%

The stock has a market cap of $2.63 billion, a P/E ratio of 51.57, a PEG ratio of 2.92 and a beta of 1.15. The stock has a fifty day simple moving average of $112.38 and a 200-day simple moving average of $140.06.

Inspire Medical Systems (NYSE:INSP - Get Free Report) last released its quarterly earnings results on Monday, August 4th. The company reported $0.45 EPS for the quarter, topping analysts' consensus estimates of $0.22 by $0.23. Inspire Medical Systems had a return on equity of 10.38% and a net margin of 6.17%.The company had revenue of $217.09 million for the quarter, compared to analyst estimates of $214.50 million. During the same quarter last year, the firm posted $0.32 earnings per share. Inspire Medical Systems'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. Sell-side analysts anticipate that Inspire Medical Systems, Inc. will post 2.16 earnings per share for the current year.

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

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in INSP. Parallel Advisors LLC increased its holdings in shares of Inspire Medical Systems by 356.5% during the 1st quarter. Parallel Advisors LLC now owns 210 shares of the company's stock worth $33,000 after acquiring an additional 164 shares during the last quarter. Quarry LP increased its holdings in shares of Inspire Medical Systems by 2,127.3% during the 1st quarter. Quarry LP now owns 245 shares of the company's stock worth $39,000 after acquiring an additional 234 shares during the last quarter. Banque Transatlantique SA acquired a new position in shares of Inspire Medical Systems during the 1st quarter worth approximately $46,000. Daiwa Securities Group Inc. increased its holdings in shares of Inspire Medical Systems by 38.7% during the 2nd quarter. Daiwa Securities Group Inc. now owns 466 shares of the company's stock worth $60,000 after acquiring an additional 130 shares during the last quarter. Finally, Smartleaf Asset Management LLC increased its holdings in shares of Inspire Medical Systems by 27.2% during the 1st quarter. Smartleaf Asset Management LLC now owns 454 shares of the company's stock worth $71,000 after acquiring an additional 97 shares during the last quarter. Institutional investors and hedge funds own 94.91% of the company's stock.

Inspire Medical Systems Company Profile

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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