UBS Group Downgrades Inspire Medical Systems (NYSE:INSP) to Neutral

Key Points

• Inspire Medical Systems' stock rating has been downgraded by UBS Group from a "strong-buy" to a "hold," reflecting caution among analysts.
• Despite the downgrade, Inspire Medical Systems has a consensus rating of "Moderate Buy" with a price target averaging $154.43.
• The company's recent quarterly earnings showed a significant beat on EPS, with revenue increasing by 10.8% year-over-year, highlighting ongoing growth despite market fluctuations.

Inspire Medical Systems (NYSE:INSP - Get Free Report) was downgraded by investment analysts at UBS Group from a "buy" rating to a "neutral" rating in a report issued on Monday, MarketBeat.com reports. They currently have a $89.00 price target on the stock. UBS Group's price target indicates a potential upside of 12.72% from the company's current price.

Several other research analysts have also recently issued reports on INSP. Leerink Partners dropped their target price on Inspire Medical Systems from $116.00 to $97.00 and set a "market perform" rating on the stock in a research report on Friday, August 15th. Truist Financial reissued a "hold" rating and issued a $125.00 target price (down from $190.00) on shares of Inspire Medical Systems in a research report on Tuesday, August 5th. Evercore ISI initiated coverage on Inspire Medical Systems in a research report on Tuesday, September 2nd. They issued an "outperform" rating and a $150.00 target price on the stock. Lake Street Capital set a $150.00 target price on Inspire Medical Systems and gave the stock a "buy" rating in a research report on Tuesday, August 5th. Finally, Morgan Stanley dropped their target price on Inspire Medical Systems from $200.00 to $182.00 and set an "overweight" rating on the stock in a research report on Tuesday, July 15th. Seven equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $154.43.

Inspire Medical Systems Price Performance

Inspire Medical Systems stock opened at $78.96 on Monday. Inspire Medical Systems has a one year low of $73.92 and a one year high of $218.52. The stock has a market capitalization of $2.33 billion, a PE ratio of 45.64, a price-to-earnings-growth ratio of 2.49 and a beta of 1.15. The business's fifty day moving average is $98.63 and its 200 day moving average is $129.96.

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

Inspire Medical Systems announced that its Board of Directors has initiated a stock buyback program on Monday, August 11th that permits the company to buyback $200.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 8.6% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its shares are undervalued.

Insider Activity

In other news, CFO Richard Buchholz sold 11,000 shares of the company's stock in a transaction that occurred 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 sale, the chief financial officer directly owned 44,867 shares of the company's stock, valued at $4,190,129.13. This represents a 19.69% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 2.30% of the stock is owned by company insiders.

Institutional Trading of Inspire Medical Systems

Several hedge funds have recently modified their holdings of INSP. Two Sigma Investments LP raised its holdings in shares of Inspire Medical Systems by 9.3% during the 4th quarter. Two Sigma Investments LP now owns 16,384 shares of the company's stock worth $3,037,000 after acquiring an additional 1,398 shares in the last quarter. Squarepoint Ops LLC increased its position in shares of Inspire Medical Systems by 185.4% during the 4th quarter. Squarepoint Ops LLC now owns 2,477 shares of the company's stock valued at $459,000 after purchasing an additional 5,377 shares during the last quarter. Polar Asset Management Partners Inc. bought a new position in shares of Inspire Medical Systems during the 4th quarter valued at approximately $945,000. Wealth Enhancement Advisory Services LLC increased its position in shares of Inspire Medical Systems by 37.9% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 10,760 shares of the company's stock valued at $1,995,000 after purchasing an additional 2,960 shares during the last quarter. Finally, GAMMA Investing LLC increased its position in shares of Inspire Medical Systems by 56,237.7% during the 1st quarter. GAMMA Investing LLC now owns 91,267 shares of the company's stock valued at $145,370,000 after purchasing an additional 91,105 shares during the last quarter. 94.91% of the stock is owned by hedge funds and other institutional investors.

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.