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

Inspire Medical Systems, Inc. (NYSE:INSP)’s stock price was down 7% during mid-day 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.

Several other brokerages have also recently commented on INSP. Zacks Research cut Inspire Medical Systems from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 22nd. Royal Bank Of Canada boosted their price target on 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. KeyCorp reiterated a “sector weight” rating on shares of Inspire Medical Systems in a research note on Tuesday, August 4th. Robert W. Baird increased their price objective on Inspire Medical Systems from $73.00 to $77.00 and gave the company a “neutral” rating in a report on Tuesday. Finally, JPMorgan Chase & Co. increased their price objective on Inspire Medical Systems from $54.00 to $60.00 and gave the company a “neutral” rating in a report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, thirteen have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, Inspire Medical Systems presently has a consensus rating of “Hold” and an average target price of $70.94.

Insider Transactions at Inspire Medical Systems

In related news, insider Jason Kelly sold 963 shares of Inspire Medical Systems stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $59.55, for a total transaction of $57,346.65. Following the completion of the transaction, the insider owned 18,985 shares in the company, valued at approximately $1,130,556.75. This trade represents a 4.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 2.20% of the company’s stock.

Key Headlines 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.

Institutional Trading of Inspire Medical Systems

A number of hedge funds have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in Inspire Medical Systems in the 2nd quarter valued at $211,341,000. Assenagon Asset Management S.A. lifted its holdings in shares of Inspire Medical Systems by 66.2% during the second quarter. Assenagon Asset Management S.A. now owns 864,395 shares of the company’s stock worth $38,561,000 after buying an additional 344,221 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Inspire Medical Systems by 21.7% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 546,020 shares of the company’s stock worth $24,358,000 after buying an additional 97,233 shares in the last quarter. Renaissance Technologies LLC boosted its position in shares of Inspire Medical Systems by 14.4% in the first quarter. Renaissance Technologies LLC now owns 469,968 shares of the company’s stock valued at $24,241,000 after acquiring an additional 59,200 shares during the period. Finally, ADAR1 Capital Management LLC boosted its position in shares of Inspire Medical Systems by 2,601.3% in the first quarter. ADAR1 Capital Management LLC now owns 405,197 shares of the company’s stock valued at $20,900,000 after acquiring an additional 390,197 shares during the period. Institutional investors and hedge funds own 94.91% of the company’s stock.

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 company has a market cap of $1.82 billion, a P/E ratio of 13.62, a PEG ratio of 5.37 and a beta of 0.73.

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