Inspire Medical Systems (NYSE: INSP) received an upgraded stock rating from Truist Financial, moving from a “hold” to a “buy” in a report released to clients on Wednesday. The brokerage raised its price target for the stock to $165.00, a significant increase from the previous target of $128.00. This new target suggests a potential upside of 29.19% based on the company’s last closing price.
Several other analysts have also weighed in on Inspire Medical Systems. KeyCorp reaffirmed a “sector weight” rating on November 4, while Leerink Partners adjusted their price target from $116.00 to $97.00, maintaining a “market perform” rating. Stifel Nicolaus set a new target price of $110.00 and rated the stock as a “buy.” Lake Street Capital also issued a “buy” rating with a price target of $150.00. Wolfe Research upgraded the stock from “peer perform” to “outperform” with a target price of $180.00.
Overall, ten analysts have rated Inspire Medical Systems as a “buy,” six as a “hold,” and one as a “sell.” According to data from MarketBeat, the consensus rating stands at “Moderate Buy,” with an average target price of $134.88.
Current Market Performance and Financial Results
On Wednesday, Inspire Medical Systems opened at $127.71. The company has a market capitalization of $3.71 billion and a price-to-earnings ratio of 86.88. The stock has experienced volatility, with a 52-week low of $70.77 and a high of $216.01.
Inspire Medical Systems recently reported its quarterly earnings on November 3, revealing earnings per share (EPS) of $0.38, surpassing analysts’ expectations of a loss of $0.15. The company achieved a net margin of 5.05% and a return on equity of 9.41%, with $224.50 million in revenue for the quarter, slightly above the anticipated $220.39 million. This represents a year-over-year revenue increase of 10.5%.
Looking ahead, analysts forecast an EPS of 2.16 for the current fiscal year. On August 11, the Board of Directors approved a stock buyback plan allowing the company to repurchase up to $200 million of its shares, equating to approximately 8.6% of outstanding shares. Such buyback plans typically indicate that company leadership believes the stock is undervalued.
Institutional Investor Activity
Recent trading activity reveals increased institutional investment in Inspire Medical Systems. Farther Finance Advisors LLC raised its stake by 14.6% during the second quarter, now holding 603 shares valued at $78,000. Allianz Asset Management GmbH also increased its holdings by 1.6%, owning 5,000 shares worth $796,000.
Smartleaf Asset Management LLC boosted its position by 27.2%, now owning 454 shares valued at $71,000. The New York State Teachers Retirement System raised its holdings by 0.5% to 21,490 shares worth $2.79 million. PNC Financial Services Group Inc. increased its ownership by 4.7%, holding 2,419 shares valued at $385,000.
Collectively, institutional investors and hedge funds hold approximately 94.91% of the stock.
Inspire Medical Systems specializes in the development of minimally invasive solutions for patients suffering from obstructive sleep apnea (OSA). The company’s flagship product, the Inspire system, employs neurostimulation technology to provide an effective treatment for moderate to severe OSA, positioning the company as a significant player in the medical technology sector.
