Inspire Medical Systems (NYSE:INSP) Shares Down 5.9% - Should You Sell?

Key Points

• Shares fell about 5.9% intraday to ~$55.37 on Tuesday while volume was roughly 617,189 shares (down ~52% vs. average), and the stock is trading well below its 50‑day ($73.14) and 200‑day ($85.74) moving averages.
• Analysts are mixed but cautious — the consensus rating is "Hold" (5 Buys, 13 Holds, 1 Sell) with an average price target of $104.24, though individual targets range widely.
• Fundamentals show a recent beat — Q4 EPS $1.65 vs. $0.69 expected and revenue $269.1M (+12.2% YoY); the company has a market cap of $1.58B, P/E ~11.1, and ~94.9% institutional ownership with several large investors increasing stakes.

Inspire Medical Systems, Inc. (NYSE:INSP - Get Free Report)'s stock price was down 5.9% during trading on Tuesday . The stock traded as low as $56.43 and last traded at $55.3720. Approximately 617,189 shares were traded during mid-day trading, a decline of 52% from the average daily volume of 1,297,001 shares. The stock had previously closed at $58.87.

Wall Street Analysts Forecast Growth

A number of research firms have commented on INSP. UBS Group set a $67.00 price target on shares of Inspire Medical Systems in a research report on Friday, February 13th. Morgan Stanley set a $60.00 target price on Inspire Medical Systems in a report on Wednesday, February 18th. Wolfe Research cut Inspire Medical Systems from an "outperform" rating to a "peer perform" rating in a report on Friday, February 13th. Wells Fargo & Company set a $70.00 price objective on Inspire Medical Systems and gave the company an "equal weight" rating in a research report on Thursday, February 12th. Finally, Mizuho decreased their target price on Inspire Medical Systems from $130.00 to $85.00 and set an "outperform" rating on the stock in a report on Thursday, February 12th. Five analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $104.24.

Inspire Medical Systems Trading Down 6.1%

The firm has a market cap of $1.58 billion, a price-to-earnings ratio of 11.09, a price-to-earnings-growth ratio of 2.90 and a beta of 0.74. The stock's 50 day moving average is $73.14 and its 200 day moving average is $85.74.

Inspire Medical Systems (NYSE:INSP - Get Free Report) last issued its quarterly earnings data on Wednesday, February 11th. The company reported $1.65 earnings per share for the quarter, topping the consensus estimate of $0.69 by $0.96. Inspire Medical Systems had a net margin of 15.95% and a return on equity of 10.96%. The business had revenue of $269.08 million during the quarter, compared to analysts' expectations of $264.02 million. During the same quarter in the previous year, the company earned $1.15 EPS. The business's revenue was up 12.2% on a year-over-year basis. On average, equities research analysts predict that Inspire Medical Systems, Inc. will post 2.16 EPS for the current year.

Institutional Investors Weigh In On Inspire Medical Systems

A number of large investors have recently added to or reduced their stakes in INSP. Dragoneer Investment Group LLC raised its holdings in Inspire Medical Systems by 81.4% in the 2nd 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 in the last quarter. Wellington Management Group LLP acquired a new stake in shares of Inspire Medical Systems during the 4th quarter worth $203,929,000. Wasatch Advisors LP grew 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 purchasing an additional 110,288 shares in the last quarter. William Blair Investment Management LLC increased its position in shares of Inspire Medical Systems by 68.7% in the third quarter. William Blair Investment Management LLC now owns 1,297,573 shares of the company's stock worth $96,280,000 after purchasing an additional 528,404 shares during the period. Finally, Morgan Stanley raised its stake in Inspire Medical Systems by 179.5% in the fourth quarter. Morgan Stanley now owns 1,259,762 shares of the company's stock valued at $116,188,000 after purchasing an additional 809,121 shares in the last quarter. Institutional investors and hedge funds own 94.91% of the company's stock.

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.

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