Inspire Medical Systems (NYSE:INSP) Trading Down 4.5% - Here's What Happened

Key Points

• Inspire Medical Systems' stock price dropped 4.5% during mid-day trading, reaching a low of $78.60, significantly below its previous close of $81.47.
• Analysts have issued mixed ratings for the stock, with targets ranging from $101.00 to $230.00, and an average rating of "Moderate Buy" with a target price of $164.50.
• The company reported improved quarterly earnings, with an EPS of $0.45, exceeding expectations and showing a 10.8% increase in revenue compared to the previous year.

Inspire Medical Systems, Inc. (NYSE:INSP - Get Free Report) shares fell 4.5% during trading on Wednesday . The company traded as low as $78.60 and last traded at $77.77. 124,384 shares were traded during trading, a decline of 82% from the average session volume of 701,670 shares. The stock had previously closed at $81.47.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on INSP. Truist Financial reissued a "hold" rating and set a $125.00 price target (down from $190.00) on shares of Inspire Medical Systems in a report on Tuesday, August 5th. Stifel Nicolaus set a $140.00 price target on Inspire Medical Systems and gave the company a "hold" rating in a report on Tuesday, August 5th. Leerink Partners lowered their price target on Inspire Medical Systems from $116.00 to $97.00 and set a "market perform" rating on the stock in a report on Friday, August 15th. Wall Street Zen lowered Inspire Medical Systems from a "buy" rating to a "hold" rating in a report on Saturday, July 26th. Finally, JPMorgan Chase & Co. cut Inspire Medical Systems from an "overweight" rating to a "neutral" rating and decreased their target price for the company from $195.00 to $110.00 in a research note on Tuesday, August 5th. Eight research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, Inspire Medical Systems has an average rating of "Moderate Buy" and a consensus price target of $164.50.

Inspire Medical Systems Stock Up 1.1%

The company has a 50 day moving average of $104.85 and a two-hundred day moving average of $134.15. The firm has a market cap of $2.39 billion, a P/E ratio of 46.76, a PEG ratio of 2.50 and a beta of 1.15.

Inspire Medical Systems (NYSE:INSP - Get Free Report) last announced its earnings results on Monday, August 4th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate 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 business had revenue of $217.09 million during the quarter, compared to analysts' expectations of $214.50 million. During the same quarter last year, the business posted $0.32 earnings per share. The company's quarterly revenue was up 10.8% on a year-over-year basis. Inspire Medical Systems has set its FY 2025 guidance at 0.400-0.500 EPS. Research analysts expect that Inspire Medical Systems, Inc. will post 2.16 earnings per share for the current fiscal year.

Inspire Medical Systems declared that its board has authorized a share buyback plan on Monday, August 11th that authorizes the company to repurchase $200.00 million in shares. This repurchase authorization authorizes the company to buy up to 8.6% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Inspire Medical Systems

In related news, 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 value of $1,027,290.00. Following the completion of the transaction, the chief financial officer owned 44,867 shares in the company, valued at $4,190,129.13. This trade represents a 19.69% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 2.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Inspire Medical Systems

Hedge funds and other institutional investors have recently modified their holdings of the stock. Marex Group plc purchased a new stake in Inspire Medical Systems in the 2nd quarter worth about $541,000. Public Sector Pension Investment Board raised its stake in shares of Inspire Medical Systems by 6.9% during the 2nd quarter. Public Sector Pension Investment Board now owns 100,505 shares of the company's stock worth $13,043,000 after purchasing an additional 6,445 shares in the last quarter. FORA Capital LLC purchased a new stake in shares of Inspire Medical Systems during the 2nd quarter worth about $220,000. State of Tennessee Department of Treasury raised its stake in shares of Inspire Medical Systems by 11.3% during the 2nd quarter. State of Tennessee Department of Treasury now owns 16,445 shares of the company's stock worth $2,134,000 after purchasing an additional 1,666 shares in the last quarter. Finally, Soleus Capital Management L.P. raised its stake in shares of Inspire Medical Systems by 179.5% during the 2nd quarter. Soleus Capital Management L.P. now owns 109,000 shares of the company's stock worth $14,145,000 after purchasing an additional 70,000 shares in 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.