Inspire Medical Systems (NYSE: INSP) has been upgraded from a “hold” to a “buy” rating by analysts at Truist Financial. This adjustment, communicated in a report issued on November 3, 2023, includes a new price target of $165.00, reflecting an increase from a previous target of $128.00. This new target suggests a potential upside of approximately 29.19% from the stock’s last closing price.
Various other analysts have also evaluated Inspire Medical Systems recently. KeyCorp reaffirmed a “sector weight” rating on November 4, while Leerink Partners decreased their price target from $116.00 to $97.00, maintaining a “market perform” rating. On the other hand, Stifel Nicolaus set a target price of $110.00 with a “buy” rating, and Lake Street Capital proposed a price target of $150.00 with a similar rating. Additionally, Wolfe Research upgraded their rating from “peer perform” to “outperform,” setting a price target of $180.00.
The consensus among analysts indicates a strong interest in the stock, with ten analysts rating it as a “buy,” six maintaining a “hold” rating, and one issuing a “sell” recommendation. According to data from MarketBeat, the average target price across the board is $134.88, supporting a consensus rating of “Moderate Buy.”
Stock Performance and Financial Results
On November 3, Inspire Medical Systems shares opened at $127.71, reflecting a slight decline of 2.1%. The company has experienced considerable fluctuations over the past year, with a 52-week low of $70.77 and a high of $216.01. Currently, the stock has a market capitalization of $3.71 billion, a price-to-earnings ratio of 86.88, and a PEG ratio of 13.80.
Inspire Medical Systems recently reported its quarterly earnings on November 3, revealing $224.50 million in revenue, surpassing the analysts’ expectations of $220.39 million. The company also reported earnings per share of $0.38, which exceeded the consensus estimate of a loss of $0.15 by $0.53. Their net margin stands at 5.05%, and return on equity is measured at 9.41%. Year-over-year, revenue increased by 10.5% compared to the same quarter last year.
Share Buyback Plan and Institutional Trading
In a strategic move, the Board of Directors of Inspire Medical Systems approved a stock buyback plan on August 11, allowing the company to repurchase up to $200.00 million in outstanding shares. This plan enables the company to buy back approximately 8.6% of its shares through open market purchases, indicating management’s confidence in the stock’s value.
Recent trading activity reveals significant interest from institutional investors. Farther Finance Advisors LLC increased its stake in the company by 14.6% during the second quarter, now holding 603 shares valued at $78,000. Other notable movements include Allianz Asset Management GmbH, which raised its holdings by 1.6% to 5,000 shares, and Smartleaf Asset Management LLC, which boosted its position by 27.2%.
Overall, 94.91% of Inspire Medical Systems’ stock is held by institutional investors, reflecting strong institutional confidence in the company’s future potential and growth trajectory.
Inspire Medical Systems continues to focus on developing innovative solutions for patients with obstructive sleep apnea, maintaining a commitment to advancing medical technology in this vital area.
