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 Tuesday after Wells Fargo & Company lowered their price target on the stock from $70.00 to $56.00. The stock had previously closed at $54.84, but opened at $47.00. Wells Fargo & Company currently has an equal weight rating on the stock. Inspire Medical Systems shares last traded at $45.5150, with a volume of 855,647 shares changing hands.

Several other brokerages also recently weighed in on INSP. Jefferies Financial Group dropped their price objective on Inspire Medical Systems from $81.00 to $66.00 and set a “hold” rating for the company in a research report on Thursday, February 12th. Piper Sandler downgraded Inspire Medical Systems from an “overweight” rating to a “neutral” rating and set a $55.00 price objective for the company. in a research report on Tuesday. Royal Bank Of Canada restated a “sector perform” rating and set a $56.00 price objective on shares of Inspire Medical Systems in a research report on Tuesday, April 14th. Oppenheimer downgraded Inspire Medical Systems from an “outperform” rating to a “market perform” rating in a research report on Thursday, January 22nd. Finally, Bank of America restated a “neutral” rating and set a $53.00 price objective on shares of Inspire Medical Systems in a research report on Tuesday. Four investment analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $94.11.

Key Headlines Impacting Inspire Medical Systems

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

• Positive Sentiment: Q1 results beat estimates — Inspire reported $0.10 EPS (vs. consensus loss) and $204.6M revenue, topping Street expectations and showing modest year-over-year sales growth. This supports the company’s underlying business strength. GlobeNewswire: Q1 Results
• Neutral Sentiment: Analyst note: Mizuho cut its price target from $70 to $55 but kept an “outperform” rating — the new target offers almost no upside versus the current price, so it is mixed (still favorable rating but lower conviction on upside). Benzinga
• Neutral Sentiment: Company materials and call transcript are available for investors reviewing management commentary and the details behind the guidance change. Earnings Call Summary (Yahoo)
• Negative Sentiment: Guidance cut — Inspire narrowed FY2026 EPS guidance to $0.75–$1.25 (street ~$1.99) and revenue to $825M–$875M (street ~$961M). Management cited reimbursement/coding issues and WISeR disruption as drivers of the downgrade, which materially reduces expected growth and margins. Seeking Alpha: Guidance & WISeR Disruption
• Negative Sentiment: Analyst downgrades/price-target cuts — Robert W. Baird cut its target to $50 and moved to “neutral”; Bank of America reaffirmed “neutral” with a $53 target. Those moves signal reduced analyst confidence and put further pressure on the shares. The Fly: Baird Note
• Negative Sentiment: Market reaction: coverage and headlines emphasizing the guidance cut and reimbursement uncertainty drove a sharp intraday sell-off (coverage noted a large single-day decline following the update). Yahoo Finance: Stock Reaction

Institutional Investors Weigh In On Inspire Medical Systems

Several large investors have recently added to or reduced their stakes in the business. Wellington Management Group LLP acquired a new stake in Inspire Medical Systems during the fourth quarter worth approximately $203,929,000. Wasatch Advisors LP boosted its holdings in Inspire Medical Systems by 7.2% in the second quarter. Wasatch Advisors LP now owns 1,634,395 shares of the company’s stock worth $212,095,000 after acquiring an additional 110,288 shares in the last quarter. William Blair Investment Management LLC boosted its holdings in Inspire Medical Systems by 68.7% in the third quarter. William Blair Investment Management LLC now owns 1,297,573 shares of the company’s stock worth $96,280,000 after acquiring an additional 528,404 shares in the last quarter. Morgan Stanley boosted its holdings in Inspire Medical Systems by 179.5% in the fourth quarter. Morgan Stanley now owns 1,259,762 shares of the company’s stock worth $116,188,000 after acquiring an additional 809,121 shares in the last quarter. Finally, Deerfield Management Company L.P. boosted its holdings in 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 worth $77,739,000 after acquiring an additional 907,694 shares in the last quarter. Institutional investors and hedge funds own 94.91% of the company’s stock.

Inspire Medical Systems Price Performance

The firm has a fifty day simple moving average of $56.73 and a 200-day simple moving average of $79.64. The firm has a market cap of $1.31 billion, a P/E ratio of 9.18, a price-to-earnings-growth ratio of 2.92 and a beta of 0.83.

Inspire Medical Systems (NYSE:INSP) last announced its quarterly earnings results on Monday, May 4th. The company reported $0.10 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.28) by $0.38. The business had revenue of $204.58 million for the quarter, compared to analyst estimates of $200.04 million. Inspire Medical Systems had a return on equity of 10.96% and a net margin of 15.95%.The company’s quarterly revenue was up 1.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.10 earnings per share. Inspire Medical Systems has set its FY 2026 guidance at 0.750-1.250 EPS. On average, equities analysts predict that Inspire Medical Systems, Inc. will post 1.82 earnings per share 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.