Inspire Medical Systems (NYSE:INSP) Shares Gap Down – Should You Sell?

Inspire Medical Systems, Inc. (NYSE:INSP) gapped down before the market opened on Thursday . The stock had previously closed at $118.27, but opened at $94.12. Inspire Medical Systems shares last traded at $92.2720, with a volume of 1,381,711 shares traded.

Inspire Medical Systems News Summary

Here are the key news stories impacting Inspire Medical Systems this week:

• Positive Sentiment: Several brokerages have signaled confidence by raising targets or keeping bullish ratings — Mizuho lifted its target to $130 and maintained Outperform, and JPMorgan raised its target to $118; Bank of America and Robert W. Baird issued buy/reaffirmations, supporting upside expectations. Mizuho Raises INSP Price Target JPMorgan Boosts INSP PT Baird Reaffirms Buy
• Neutral Sentiment: Market commentary is revisiting valuation after a sharp share slide — useful for investors assessing risk/reward but dependent on how reimbursement and legal issues evolve. Revisiting Valuation
• Negative Sentiment: Numerous law firms have filed investor alerts and securities class-action notices tied to a large share drop (cited ~$42.04) alleging concealed Medicare billing software failures and inventory problems — multiple firms are soliciting lead-plaintiff roles ahead of a Jan. 5, 2026 deadline. This raises litigation risk, potential costs and distraction for management. Rosen Law Firm Notice PR Newswire Lawsuit Notice
• Negative Sentiment: Coverage ties the share decline to a Medicare reimbursement/coding change and alleged operational issues; articles explain a sharp drop (reported 23–30% moves) and cite the Medicare policy shift as the proximate catalyst — a fundamental reimbursement risk that could materially affect revenue if not resolved or mitigated. Why INSP Is Down After Medicare Coding Shift AAII Explainer

Analyst Upgrades and Downgrades

Several brokerages have issued reports on INSP. Morgan Stanley reiterated an “equal weight” rating and set a $130.00 target price (up from $105.00) on shares of Inspire Medical Systems in a research report on Tuesday, December 2nd. Oppenheimer reaffirmed an “outperform” rating on shares of Inspire Medical Systems in a report on Friday. Robert W. Baird increased their target price on Inspire Medical Systems from $125.00 to $180.00 and gave the company an “outperform” rating in a research note on Thursday, December 4th. JPMorgan Chase & Co. raised their price target on Inspire Medical Systems from $82.00 to $118.00 and gave the company a “neutral” rating in a research report on Tuesday. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Inspire Medical Systems in a report on Wednesday, December 10th. Eleven research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $138.88.

Inspire Medical Systems Stock Up 1.2%

The firm’s 50-day simple moving average is $99.58 and its 200-day simple moving average is $103.72. The firm has a market capitalization of $2.80 billion, a PE ratio of 65.57, a price-to-earnings-growth ratio of 10.98 and a beta of 0.70.

Inspire Medical Systems (NYSE:INSP) last released its earnings results on Monday, November 3rd. The company reported $0.38 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.15) by $0.53. The company had revenue of $224.50 million during the quarter, compared to analyst estimates of $220.39 million. Inspire Medical Systems had a return on equity of 9.41% and a net margin of 5.05%.Inspire Medical Systems’s revenue for the quarter was up 10.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.60 EPS. On average, equities research analysts forecast that Inspire Medical Systems, Inc. will post 2.16 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Shawn Mccormick sold 2,000 shares of the stock in a transaction that occurred on Friday, November 28th. The stock was sold at an average price of $127.48, for a total transaction of $254,960.00. Following the completion of the sale, the director owned 26,046 shares of the company’s stock, valued at approximately $3,320,344.08. This represents a 7.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 4.10% of the company’s stock.

Institutional Investors Weigh In On Inspire Medical Systems

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Farther Finance Advisors LLC grew its holdings in Inspire Medical Systems by 14.6% in the 2nd quarter. Farther Finance Advisors LLC now owns 603 shares of the company’s stock worth $78,000 after acquiring an additional 77 shares during the last quarter. Smartleaf Asset Management LLC grew its stake in shares of Inspire Medical Systems by 27.2% in the first quarter. Smartleaf Asset Management LLC now owns 454 shares of the company’s stock worth $71,000 after purchasing an additional 97 shares during the last quarter. New York State Teachers Retirement System increased its holdings in Inspire Medical Systems by 0.5% during the 2nd quarter. New York State Teachers Retirement System now owns 21,490 shares of the company’s stock valued at $2,789,000 after purchasing an additional 100 shares during the period. Xponance Inc. increased its holdings in Inspire Medical Systems by 2.9% during the 3rd quarter. Xponance Inc. now owns 4,177 shares of the company’s stock valued at $310,000 after purchasing an additional 116 shares during the period. Finally, Amalgamated Bank raised its position in Inspire Medical Systems by 1.3% during the 2nd quarter. Amalgamated Bank now owns 9,567 shares of the company’s stock valued at $1,242,000 after purchasing an additional 125 shares during the last quarter. 94.91% of the stock is currently owned by institutional investors.

Inspire Medical Systems Company Profile

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.