Inspire Medical Systems (NYSE:INSP) Shares Gap Down on Analyst Downgrade

Inspire Medical Systems, Inc. (NYSE:INSP)’s stock price gapped down before the market opened on Thursday after Jefferies Financial Group lowered their price target on the stock from $81.00 to $66.00. The stock had previously closed at $68.21, but opened at $55.52. Jefferies Financial Group currently has a hold rating on the stock. Inspire Medical Systems shares last traded at $62.8010, with a volume of 1,095,631 shares changing hands.

Several other research firms have also weighed in on INSP. Morgan Stanley restated an “equal weight” rating and set a $130.00 price target (up from $105.00) on shares of Inspire Medical Systems in a research report on Tuesday, December 2nd. Oppenheimer downgraded shares of Inspire Medical Systems from an “outperform” rating to a “market perform” rating in a research report on Thursday, January 22nd. Piper Sandler lowered their price target on shares of Inspire Medical Systems from $165.00 to $85.00 and set an “overweight” rating for the company in a research report on Thursday. UBS Group set a $96.00 price objective on shares of Inspire Medical Systems in a research note on Thursday, January 22nd. Finally, Mizuho decreased their target price on shares of Inspire Medical Systems from $130.00 to $85.00 and set an “outperform” rating for the company in a research note on Thursday. Six equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $110.65.

Insiders Place Their Bets

In other news, Director Shawn Mccormick sold 2,000 shares of Inspire Medical Systems stock in a transaction on Friday, November 28th. The shares were sold at an average price of $127.48, for a total transaction of $254,960.00. Following the transaction, the director owned 26,046 shares in the company, valued at $3,320,344.08. This trade represents a 7.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 4.10% of the company’s stock.

More Inspire Medical Systems News

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

• Positive Sentiment: Q4 results beat and operational strength — Inspire posted $269.1M in Q4 revenue (↑12% y/y) and adjusted EPS of $1.65, topping estimates; gross margin expanded and operating cash flow and buybacks support cash returns. Earnings Release
• Neutral Sentiment: Full earnings package and call are available for deeper read — slide deck and transcript provide detail on assumptions behind the 2026 outlook and tax/adjustment impacts for modeling. Slide Deck / Press Release Call Transcript
• Negative Sentiment: Guidance cut and coding/reimbursement uncertainty — management narrowed FY2026 revenue to $950M–$1.0B and said the Inspire V procedure will likely transition to CPT 64582 with a -52 modifier, potentially lowering physician reimbursement and pressuring procedure volumes. That guidance revision is the primary driver of the selloff. MSN: Revenue Outlook & Coding
• Negative Sentiment: Immediate market reaction — analysts and headlines highlighted the coding/guidance risk and shares fell sharply despite the beat. Zacks: Stock Falls Despite Q4 Beat Investing.com: Shares Slide
• Negative Sentiment: Analyst price-target resets — multiple firms lowered targets (Jefferies to $66, Truist to $70, Mizuho to $85, Piper Sandler to $85) which increases near-term downside pressure even when some ratings remain constructive. Benzinga: Analyst Actions The Fly: Mizuho PT Cut
• Negative Sentiment: Bearish analysis and investor concerns — independent commentary highlights lingering risks around reimbursement, growth cadence and margin sustainability, reinforcing the negative sentiment. Seeking Alpha: Critical Take

Institutional Trading of Inspire Medical Systems

Several hedge funds have recently bought and sold shares of INSP. Texas Permanent School Fund Corp grew its stake in Inspire Medical Systems by 42.2% during the second quarter. Texas Permanent School Fund Corp now owns 40,042 shares of the company’s stock valued at $5,196,000 after acquiring an additional 11,892 shares in the last quarter. Y Intercept Hong Kong Ltd boosted its holdings in shares of Inspire Medical Systems by 553.1% during the 3rd quarter. Y Intercept Hong Kong Ltd now owns 99,049 shares of the company’s stock valued at $7,349,000 after purchasing an additional 83,883 shares during the last quarter. Nordea Investment Management AB purchased a new position in shares of Inspire Medical Systems during the second quarter valued at about $1,634,000. CW Advisors LLC increased its holdings in shares of Inspire Medical Systems by 45.3% in the second quarter. CW Advisors LLC now owns 49,960 shares of the company’s stock worth $6,484,000 after purchasing an additional 15,576 shares during the last quarter. Finally, Capital Fund Management S.A. lifted its position in shares of Inspire Medical Systems by 44.1% in the second quarter. Capital Fund Management S.A. now owns 68,663 shares of the company’s stock worth $8,910,000 after buying an additional 21,021 shares in the last quarter. Institutional investors own 94.91% of the company’s stock.

Inspire Medical Systems Stock Down 12.4%

The company has a market capitalization of $1.74 billion, a P/E ratio of 12.00, a price-to-earnings-growth ratio of 6.88 and a beta of 0.74. The business has a 50 day moving average of $94.42 and a 200 day moving average of $91.48.

Inspire Medical Systems (NYSE:INSP) last issued its quarterly earnings data on Wednesday, February 11th. The company reported $1.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.69 by $0.96. Inspire Medical Systems had a return on equity of 11.47% and a net margin of 15.95%.The business had revenue of $269.08 million for the quarter, compared to analysts’ expectations of $264.02 million. During the same period in the prior year, the firm earned $1.15 EPS. The company’s revenue for the quarter was up 12.2% on a year-over-year basis. On average, research analysts anticipate that Inspire Medical Systems, Inc. will post 2.16 EPS for the current year.

About Inspire Medical Systems

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.