Inspire Medical Systems (NYSE: INSP) received a significant boost from Truist Financial, which upgraded the company’s stock rating from “hold” to “buy.” This change was detailed in a research report issued to clients and investors on November 3, 2023, with a new price target set at $165.00. This marks an increase from the previous target of $128.00 and suggests a potential upside of approximately 29.19% based on the company’s last closing price.
In addition to Truist Financial, several other analysts have weighed in on Inspire Medical Systems. KeyCorp reiterated a “sector weight” rating on the stock, while Leerink Partners revised their price objective downwards from $116.00 to $97.00 and assigned a “market perform” rating. Stifel Nicolaus set a target price of $110.00 and maintained a “buy” rating, whereas Lake Street Capital recommended a “buy” with a target of $150.00. Lastly, Wolfe Research upgraded the stock from “peer perform” to “outperform” with a target of $180.00.
Currently, ten analysts have rated Inspire Medical Systems with a “buy” rating, six have issued a “hold” rating, and one has a “sell” rating. According to MarketBeat data, the stock enjoys a consensus rating of “Moderate Buy” with an average target price of $134.88.
Current Stock Performance and Financial Overview
On November 3, 2023, Inspire Medical Systems opened trading at $127.71. The company has demonstrated fluctuating performance, with a fifty-day simple moving average of $83.45 and a 200-day moving average of $105.88. The firm boasts a market capitalization of $3.71 billion, a price-to-earnings ratio of 86.88, and a PEG ratio of 13.80. It has a beta of 1.14, indicating moderate volatility relative to the market. Over the past year, the stock has ranged from a low of $70.77 to a high of $216.01.
Inspire Medical Systems recently announced its quarterly earnings results, revealing earnings per share of $0.38 for the quarter ending on November 3, which surpassed analysts’ expectations of a loss of $0.15. The company reported a net margin of 5.05% and a return on equity of 9.41%. Revenue for the quarter reached $224.50 million, exceeding the anticipated $220.39 million. Notably, quarterly revenue increased by 10.5% compared to the same period last year.
Analysts predict that Inspire Medical Systems will post earnings per share of 2.16 for the current fiscal year.
Stock Buyback Plan and Institutional Trading Activity
On August 11, 2023, Inspire Medical Systems’ Board of Directors approved a stock buyback plan allowing the company to repurchase up to $200.00 million in outstanding shares. This repurchase authorization enables the company to buy back up to 8.6% of its shares through open market purchases, suggesting confidence from leadership in the stock’s current valuation.
Recent institutional trading highlights show a number of hedge funds and institutional investors adjusting their positions in Inspire Medical Systems. Farther Finance Advisors LLC increased its stake by 14.6% in the second quarter, acquiring an additional 77 shares and now holding a total of 603 shares, valued at $78,000. Allianz Asset Management GmbH raised its holdings by 1.6% in the first quarter, now owning 5,000 shares worth $796,000.
Smartleaf Asset Management LLC also boosted its position by 27.2% during the first quarter, holding 454 shares valued at $71,000. Similarly, the New York State Teachers Retirement System increased its holdings by 0.5%, now owning 21,490 shares valued at $2.79 million. PNC Financial Services Group Inc. also increased its stake by 4.7%, holding 2,419 shares valued at $385,000. Currently, institutional investors hold approximately 94.91% of the stock.
Inspire Medical Systems, Inc. focuses on developing and commercializing minimally invasive solutions for patients with obstructive sleep apnea (OSA) both in the United States and internationally. The company is known for its Inspire system, a neurostimulation technology designed to provide a safe and effective treatment for moderate to severe OSA.
