Inspire Medical Systems (NYSE:INSP) received a significant boost in its stock rating from Truist Financial, which upgraded the company from a “hold” to a “buy” rating. This change was detailed in a research report released on November 3, 2023. Truist has set a new price target of $165.00, an increase from the previous target of $128.00. This adjustment suggests a potential upside of 29.19% from the stock’s last closing price.
Several other analysts have also weighed in on Inspire Medical Systems, reflecting a growing interest in the company’s prospects. KeyCorp reaffirmed a “sector weight” rating on November 4, while Leerink Partners reduced their price objective from $116.00 to $97.00 with a “market perform” rating. Stifel Nicolaus, on the other hand, has set a target price of $110.00 and maintained a “buy” rating. Lake Street Capital and Wolfe Research have also issued positive outlooks, with target prices of $150.00 and $180.00, respectively.
With ten analysts rating the stock as a buy, six holding, and one selling, the consensus rating now stands at “Moderate Buy” with an average target price of $134.88, according to MarketBeat.
Current Market Performance
Inspire Medical Systems opened at $127.71 on the day of the rating upgrade. The company’s stock has fluctuated over the past year, with a 52-week low of $70.77 and a high of $216.01. The market capitalization currently sits at $3.71 billion, with a price-to-earnings ratio of 86.88 and a PEG ratio of 13.80. The stock has shown some volatility, declining by 2.1% recently, despite its favorable ratings.
In its most recent quarterly earnings, released on November 3, Inspire Medical Systems reported earnings of $0.38 per share, significantly exceeding analysts’ expectations of a loss of $0.15. The company achieved revenue of $224.50 million for the quarter, surpassing the forecast of $220.39 million. This represents a year-over-year revenue growth of 10.5%.
Shareholder Actions and Institutional Interest
Inspire Medical Systems has initiated a stock buyback plan, approved by its Board of Directors on August 11, which allows the repurchase of up to $200.00 million in outstanding shares. This plan is perceived as a sign that the company’s leadership believes its stock is undervalued.
Institutional investors have also shown increasing interest in Inspire Medical Systems. For instance, Farther Finance Advisors LLC raised its stake by 14.6% in the second quarter, while Allianz Asset Management GmbH increased its holdings by 1.6% in the first quarter. Other firms, including Smartleaf Asset Management LLC and New York State Teachers Retirement System, have also adjusted their positions, reflecting a robust institutional interest in the company.
Currently, approximately 94.91% of Inspire Medical Systems’ stock is held by institutional investors, underscoring the confidence in its future performance.
Inspire Medical Systems specializes in developing and commercializing minimally invasive solutions for patients suffering from obstructive sleep apnea (OSA), both in the United States and internationally. Their flagship product, the Inspire system, offers a neurostimulation technology that has been recognized as a safe and effective treatment for moderate to severe cases of OSA. As the company continues to innovate and expand, analysts will be closely monitoring its performance and market strategies.
