Shares of Inspire Medical Systems, Inc. (NYSE: INSP) have received an average rating of “Hold” from analysts, according to a report by MarketBeat. Nineteen firms currently cover the company, with one issuing a sell rating, thirteen recommending a hold, and five suggesting a buy. The average target price for the stock over the next twelve months is set at $104.82.
On February 12, 2024, Wells Fargo & Company established a price objective of $70.00 for Inspire Medical Systems while maintaining an “equal weight” rating. Similarly, Robert W. Baird set a target of $74.00 with a “neutral” rating on the same day. Notably, Piper Sandler reduced its target price from $165.00 to $85.00 but retained an “overweight” rating. Meanwhile, Evercore reaffirmed an “outperform” rating with a price objective of $125.00 on January 22, 2024.
Key Institutional Investments
Recent trading data reveals significant activity from institutional investors in Inspire Medical Systems. Wellington Management Group LLP acquired a new stake valued at approximately $203.93 million during the fourth quarter. Dragoneer Investment Group LLC increased its stake by 81.4% in the second quarter, holding 2,354,411 shares valued at $305.53 million after purchasing an additional 1,056,808 shares.
Other notable investments include M&T Bank Corp, which acquired a new stake worth about $85.87 million, and Deerfield Management Company L.P., which raised its position by 648.4% during the third quarter, now owning 1,047,694 shares valued at $77.74 million. Morgan Stanley also increased its holdings by 179.5% in the fourth quarter, now owning 1,259,762 shares worth $116.19 million. Currently, institutional investors and hedge funds own 94.91% of Inspire Medical Systems’ stock.
Current Stock Performance and Financial Outlook
As of Wednesday, shares of Inspire Medical Systems opened at $59.52, reflecting a decline of 0.4%. The stock’s 52-week range shows a low of $53.11 and a high of $197.75. With a market capitalization of $1.70 billion, the company presents a price-to-earnings ratio of 11.95 and a price-to-earnings-growth ratio of 2.95. The 50-day moving average stands at $85.07, while the 200-day moving average is $88.62.
Inspire Medical Systems recently announced its quarterly earnings on February 11, 2024, reporting earnings per share of $1.65, surpassing analysts’ expectations of $0.69 by $0.96. The company achieved a net margin of 15.95% and a return on equity of 10.96%. Revenue for the quarter was $269.08 million, slightly above the forecast of $264.02 million, marking a year-over-year revenue increase of 12.2%. Analysts predict that Inspire Medical Systems will post earnings per share of $2.16 for the current year.
Inspire Medical Systems specializes in implantable neurostimulation devices aimed at treating obstructive sleep apnea (OSA). Its flagship product, the Inspire® system, provides targeted stimulation of the hypoglossal nerve to maintain airway patency during sleep. This innovative therapy serves as an alternative for patients who struggle with continuous positive airway pressure (CPAP) devices. The Inspire system includes an implantable pulse generator, a sensing lead that monitors breathing patterns, and a stimulation lead that activates the hypoglossal nerve.
