Inspire Medical Systems (NYSE:INSP) Cut to “Hold” at Wells Fargo & Company

Inspire Medical Systems (NYSE:INSP) was downgraded by investment analysts at Wells Fargo & Company from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Thursday,Zacks.com reports.

INSP has been the topic of a number of other research reports. Jefferies Financial Group dropped their price objective on Inspire Medical Systems from $81.00 to $66.00 and set a “hold” rating on the stock in a research note on Thursday. Robert W. Baird set a $74.00 price target on shares of Inspire Medical Systems and gave the stock a “neutral” rating in a research report on Thursday. Piper Sandler cut 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 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, Evercore reiterated an “outperform” rating and issued a $125.00 target price on shares of Inspire Medical Systems in a report on Thursday, January 22nd. Six equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Inspire Medical Systems currently has an average rating of “Hold” and an average price target of $110.65.

Inspire Medical Systems Trading Down 12.4%

Shares of NYSE:INSP opened at $59.74 on Thursday. The company has a 50 day moving average of $94.42 and a 200-day moving average of $91.48. The firm has a market cap of $1.74 billion, a P/E ratio of 12.00, a P/E/G ratio of 6.88 and a beta of 0.74. Inspire Medical Systems has a twelve month low of $53.11 and a twelve month high of $197.75.

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

Insider Transactions at Inspire Medical Systems

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

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in INSP. Dragoneer Investment Group LLC raised its holdings in shares of Inspire Medical Systems by 81.4% during the second quarter. Dragoneer Investment Group LLC now owns 2,354,411 shares of the company’s stock valued at $305,532,000 after acquiring an additional 1,056,808 shares during the period. Wasatch Advisors LP grew its position in Inspire Medical Systems by 7.2% during the 2nd quarter. Wasatch Advisors LP now owns 1,634,395 shares of the company’s stock worth $212,095,000 after purchasing an additional 110,288 shares in the last quarter. William Blair Investment Management LLC raised its stake in Inspire Medical Systems by 68.7% during the 3rd quarter. William Blair Investment Management LLC now owns 1,297,573 shares of the company’s stock valued at $96,280,000 after purchasing an additional 528,404 shares during the period. Deerfield Management Company L.P. lifted its holdings in shares of Inspire Medical Systems by 648.4% in the third quarter. Deerfield Management Company L.P. now owns 1,047,694 shares of the company’s stock valued at $77,739,000 after purchasing an additional 907,694 shares in the last quarter. Finally, State Street Corp boosted its position in shares of Inspire Medical Systems by 2.3% in the second quarter. State Street Corp now owns 1,030,902 shares of the company’s stock worth $133,780,000 after buying an additional 22,843 shares during the period. 94.91% of the stock is owned by hedge funds and other institutional investors.

Key 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

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.