Inspire Medical Systems (NYSE:INSP) Stock Falls 7% After Analyst Downgrade

Inspire Medical Systems, Inc. (NYSE:INSP)’s stock price was down 7% during trading on Tuesday after Barclays lowered their price target on the stock from $65.00 to $62.00. Barclays currently has an underweight rating on the stock. Inspire Medical Systems traded as low as $60.20 and last traded at $62.5110. Approximately 94,749 shares traded hands during mid-day trading, a decline of 91% from the average session volume of 1,040,750 shares. The stock had previously closed at $67.21.

Other equities analysts have also recently issued reports about the stock. Royal Bank Of Canada lifted their price target on shares of Inspire Medical Systems from $60.00 to $75.00 and gave the stock a “sector perform” rating in a research report on Thursday, October 1st. Wells Fargo & Company set a $69.00 price objective on shares of Inspire Medical Systems in a research report on Tuesday. UBS Group began coverage on Inspire Medical Systems in a research note on Tuesday, July 28th. They set a “sell” rating and a $39.00 price objective on the stock. Zacks Research downgraded Inspire Medical Systems from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 22nd. Finally, JPMorgan Chase & Co. lifted their target price on Inspire Medical Systems from $54.00 to $60.00 and gave the stock a “neutral” rating in a report on Tuesday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, thirteen have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $70.94.

Insider Buying and Selling at Inspire Medical Systems

In other news, insider Jason Kelly sold 963 shares of the stock in a transaction on Friday, August 7th. The shares were sold at an average price of $59.55, for a total transaction of $57,346.65. Following the completion of the sale, the insider owned 18,985 shares of the company’s stock, valued at $1,130,556.75. This represents a 4.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.20% of the stock is owned by company insiders.

Key Stories Impacting Inspire Medical Systems

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

• Positive Sentiment: Inspire reported third-quarter adjusted EPS of $0.14, ahead of the $0.09 consensus estimate, while revenue of approximately $206.7 million exceeded expectations of $204.3 million. Inspire Medical Systems Announces Third Quarter 2026 Financial Results
• Positive Sentiment: The company’s fiscal 2026 guidance has a midpoint of $1.30 for EPS and $855 million for revenue, modestly above consensus estimates of $1.25 and $853.6 million, respectively. This suggests execution is holding up despite reimbursement-related pressure.
• Positive Sentiment: Robert W. Baird raised its price target from $73 to $77, and Piper Sandler lifted its target from $60 to $70. Both firms retained neutral ratings, indicating improved valuation expectations but limited conviction in a stronger near-term recovery.
• Neutral Sentiment: Management said reimbursement and coding conditions are stabilizing and projected low-single-digit revenue growth for 2027. Stabilization reduces a major business risk, but the expected growth rate remains modest.
• Negative Sentiment: Third-quarter revenue declined 7.9% from the prior year, and EPS fell from $0.38 to $0.14. The results beat reduced expectations but still reflect weaker underlying growth and profitability.
• Negative Sentiment: The neutral analyst ratings and low-single-digit 2027 growth forecast may limit enthusiasm, particularly after Inspire’s shares have already rebounded substantially from their 52-week low.

Hedge Funds Weigh In On Inspire Medical Systems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Pinnacle Wealth Planning Services Inc. boosted its position in Inspire Medical Systems by 19.8% during the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 1,172 shares of the company’s stock worth $81,000 after acquiring an additional 194 shares during the last quarter. Apollon Wealth Management LLC grew its stake in shares of Inspire Medical Systems by 5.6% during the 1st quarter. Apollon Wealth Management LLC now owns 3,997 shares of the company’s stock worth $206,000 after acquiring an additional 212 shares in the last quarter. GAMMA Investing LLC raised its holdings in shares of Inspire Medical Systems by 25.0% in the third quarter. GAMMA Investing LLC now owns 1,526 shares of the company’s stock valued at $106,000 after purchasing an additional 305 shares during the last quarter. Yousif Capital Management LLC raised its holdings in shares of Inspire Medical Systems by 5.7% in the third quarter. Yousif Capital Management LLC now owns 7,552 shares of the company’s stock valued at $524,000 after purchasing an additional 405 shares during the last quarter. Finally, Nisa Investment Advisors LLC lifted its position in shares of Inspire Medical Systems by 68.5% in the third quarter. Nisa Investment Advisors LLC now owns 1,200 shares of the company’s stock worth $83,000 after purchasing an additional 488 shares in the last quarter. 94.91% of the stock is owned by institutional investors and hedge funds.

Inspire Medical Systems Price Performance

The stock’s 50-day moving average price is $68.69 and its 200 day moving average price is $58.82. The firm has a market cap of $1.82 billion, a P/E ratio of 13.62, a price-to-earnings-growth ratio of 5.37 and a beta of 0.73.

Inspire Medical Systems (NYSE:INSP) last released its earnings results on Monday, November 2nd. The company reported $0.14 earnings per share for the quarter, beating analysts’ consensus estimates of $0.09 by $0.05. The business had revenue of $206.69 million during the quarter, compared to the consensus estimate of $204.31 million. Inspire Medical Systems had a net margin of 15.03% and a return on equity of 8.64%. The firm’s revenue for the quarter was down 7.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.38 earnings per share. As a group, analysts forecast that Inspire Medical Systems, Inc. will post 1.24 EPS for the current fiscal year.

Inspire Medical Systems Company Profile

Inspire Medical Systems, Inc develops and commercializes medical devices for the treatment of obstructive sleep apnea (OSA), a condition in which the upper airway repeatedly narrows or becomes blocked during sleep. The company’s primary product is Inspire therapy, an implantable system designed to help keep the airway open by stimulating the hypoglossal nerve, which controls muscles involved in maintaining airway patency.

Inspire therapy is intended for certain adults with moderate to severe OSA who are unable to use or obtain consistent benefit from continuous positive airway pressure (CPAP) therapy.