Inspire Medical Systems falls amid sector rotation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 05 2025
0mins
Should l Buy INSP?
Source: Benzinga
Inspire Medical Systems Inc's stock dropped by 5.41% as it crossed below its 5-day SMA, reflecting a significant price movement in the regular trading session.
The decline in Inspire's stock price is attributed to sector rotation, as the broader market, including the Nasdaq-100 and S&P 500, showed gains of 0.76% and 0.63%, respectively. This indicates that while the overall market is performing well, Inspire's stock is moving in the opposite direction, likely due to investors reallocating their funds to other sectors.
This movement suggests that investors may be reassessing their positions in Inspire Medical Systems, potentially looking for better opportunities elsewhere, despite the positive performance of the broader market.
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Analyst Views on INSP
Wall Street analysts forecast INSP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for INSP is 145.31 USD with a low forecast of 91.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
13 Buy
6 Hold
0 Sell
Moderate Buy
Current: 65.600
Low
91.00
Averages
145.31
High
180.00
Current: 65.600
Low
91.00
Averages
145.31
High
180.00
About INSP
Inspire Medical Systems, Inc. is a medical technology company. The Company is focused on the development and commercialization of advanced, minimally invasive solutions for patients with obstructive sleep apnea (OSA). Its proprietary Inspire therapy is FDA, EU MDR, and PDMA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea. It has developed a novel, closed-loop solution that continuously monitors a patient’s breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. The Company sells its Inspire system to hospitals and ambulatory surgery centers (ASCs) in the United States (U.S.) and in select countries in Europe and Japan through a direct sales organization and sells its Inspire system in Singapore and Hong Kong through distributors. Its direct sales force engages in sales efforts and promotional activities focused on ear, nose and throat (ENT) physicians and sleep centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Inspire Medical Systems Executives Accused of Breaching Fiduciary Duties
- Investigation Launched: Kuehn Law, PLLC is investigating whether executives at Inspire Medical Systems, Inc. breached their fiduciary duties to shareholders, which could expose the company to legal risks and financial losses.
- Launch Challenges: The Inspire V launch is struggling due to low demand, primarily caused by providers holding significant surplus inventory and disincentives from reduced physician payments, potentially impacting the company's market share and future revenues.
- Critical Tasks Incomplete: The company failed to complete prerequisite tasks necessary for the Inspire V launch, including training and onboarding for many treatment centers and lacking necessary IT approvals, which could lead to operational chaos post-launch.
- False Statement Risks: The company's positive statements regarding its preparedness for the Inspire V launch have been accused of being materially false or misleading, which may erode shareholder trust in management and negatively affect stock prices and investor confidence.
See More
Kuehn Law Investigates Inspire Medical Executives for Breach of Fiduciary Duties
- Legal Investigation Launched: Kuehn Law, PLLC is investigating whether executives at Inspire Medical Systems, Inc. breached their fiduciary duties to shareholders, as a federal securities lawsuit highlights significant undisclosed issues regarding the Inspire V launch.
- Launch Challenges: The Inspire V launch is struggling due to low demand, primarily caused by providers holding excess inventory and disincentives from reduced physician payments, which directly impacts the company's market performance.
- Critical Tasks Incomplete: The company failed to complete prerequisite tasks necessary for the Inspire V launch, including training and IT approvals for treatment centers, which hindered the installation of the crucial SleepSync program and affected market acceptance.
- False Statement Risks: Due to these issues, Inspire's positive statements regarding its launch preparedness are deemed materially false or misleading, potentially exposing shareholders to investment loss risks.
See More
U.S. Stocks Surge as Small Caps Hit Record Highs, GDP Grows 4.4%
- Small Cap Performance: By 1:40 p.m. in New York, the Russell 2000 surged 1.1% to 2,730 points, reaching a record high and extending its year-to-date gains to 10%, reflecting strong investor confidence in small-cap stocks.
- Strong Macro Data: The U.S. GDP growth rate for Q3 was revised up to 4.4% annualized, from 4.3%, accelerating from 3.8% in Q2, indicating robust economic recovery that could drive increased business investment and consumer spending.
- Contained Inflation Pressures: The Personal Consumption Expenditures price index rose 2.8% year-over-year, with core PCE steady, suggesting that inflation remains manageable, which enhances market confidence in the Federal Reserve's policies and may help maintain a low interest rate environment.
- Tech Stock Rebound: Meta Platforms saw a more than 5% increase in stock price after Jefferies highlighted its attractive valuation, further boosting investor interest in tech stocks, potentially leading to increased capital inflows into the sector.
See More
Inspire Medical Systems Board Under Investigation, 2025 Earnings Guidance Cut by Over 80%
- Board Investigation: The Law Offices of Frank R. Cruz is investigating whether the board of directors of Inspire Medical Systems breached its fiduciary duties to shareholders, potentially exposing them to financial losses.
- Product Launch Delay: The launch of the Inspire V sleep apnea device is facing an 'elongated timeframe' due to several issues, including many centers failing to complete necessary training and contracting criteria, which impacts device purchase and implantation.
- Earnings Guidance Cut: The company has drastically reduced its 2025 earnings guidance from $2.20-$2.30 per share to $0.40-$0.50 per share, reflecting severe impacts from weak market demand and excess inventory.
- Stock Price Plunge: On August 5, 2025, Inspire's stock price plummeted by $42.04, or 32.4%, closing at $87.91 per share, significantly harming investor interests.
See More
Inspire Medical Systems (INSP) Downgraded by Oppenheimer, Shares Drop 12%
- Rating Downgrade Impact: Oppenheimer downgraded Inspire Medical Systems from outperform to perform due to CMS's update indicating that obstructive sleep apnea is no longer a covered indication under the vagus nerve stimulation National Coverage Determination, leading analyst Suraj Kalia to predict a potential recalibration of FY26 guidance.
- Increased Sales Pressure: The dynamics of new site openings and inventory sales are now under pressure, which could negatively impact Inspire's market performance, directly affecting the company's revenue and market share.
- Stock Price Volatility: Inspire's shares dropped 12% in Thursday afternoon trading, reflecting investor concerns about the company's future profitability, particularly in light of the recent changes in healthcare policy.
- Acquisition Potential Diminished: Kalia noted that while Inspire may have been considered a potential acquisition target, the current timing, rationale, and economic factors could raise questions about the feasibility of such a move, impacting the company's strategic direction.
See More
Inspire Medical Systems (INSP) Projects $912M Revenue for 2025 and Appoints New CFO
- Quarterly Revenue Growth: Inspire Medical Systems anticipates fourth-quarter revenue between $268.9 million and $269.1 million, reflecting a 12% year-over-year increase, indicating strong market performance and sustained growth potential.
- Annual Performance Outlook: The company projects full-year 2025 revenue of $911.8 million to $912.0 million, representing a 14% increase from 2024, showcasing robust development in the medical device sector and rising market demand.
- Future Revenue Projections: For fiscal 2026, Inspire expects revenue between $1.003 billion and $1.013 billion, implying a year-on-year growth of 10% to 11%, demonstrating management's confidence in future business growth and optimistic market outlook.
- Executive Appointment: Matt Osberg has been appointed as CFO, bringing over 20 years of global financial leadership experience, which is expected to enhance the company's strategic transformation and financial management optimization.
See More
Inspire Medical Systems Executives Accused of Breaching Fiduciary Duties
- Investigation Launched: Kuehn Law, PLLC is investigating whether executives at Inspire Medical Systems, Inc. breached their fiduciary duties to shareholders, which could expose the company to legal risks and financial losses.
- Launch Challenges: The Inspire V launch is struggling due to low demand, primarily caused by providers holding significant surplus inventory and disincentives from reduced physician payments, potentially impacting the company's market share and future revenues.
- Critical Tasks Incomplete: The company failed to complete prerequisite tasks necessary for the Inspire V launch, including training and onboarding for many treatment centers and lacking necessary IT approvals, which could lead to operational chaos post-launch.
- False Statement Risks: The company's positive statements regarding its preparedness for the Inspire V launch have been accused of being materially false or misleading, which may erode shareholder trust in management and negatively affect stock prices and investor confidence.
See More
Kuehn Law Investigates Inspire Medical Executives for Breach of Fiduciary Duties
- Legal Investigation Launched: Kuehn Law, PLLC is investigating whether executives at Inspire Medical Systems, Inc. breached their fiduciary duties to shareholders, as a federal securities lawsuit highlights significant undisclosed issues regarding the Inspire V launch.
- Launch Challenges: The Inspire V launch is struggling due to low demand, primarily caused by providers holding excess inventory and disincentives from reduced physician payments, which directly impacts the company's market performance.
- Critical Tasks Incomplete: The company failed to complete prerequisite tasks necessary for the Inspire V launch, including training and IT approvals for treatment centers, which hindered the installation of the crucial SleepSync program and affected market acceptance.
- False Statement Risks: Due to these issues, Inspire's positive statements regarding its launch preparedness are deemed materially false or misleading, potentially exposing shareholders to investment loss risks.
See More
U.S. Stocks Surge as Small Caps Hit Record Highs, GDP Grows 4.4%
- Small Cap Performance: By 1:40 p.m. in New York, the Russell 2000 surged 1.1% to 2,730 points, reaching a record high and extending its year-to-date gains to 10%, reflecting strong investor confidence in small-cap stocks.
- Strong Macro Data: The U.S. GDP growth rate for Q3 was revised up to 4.4% annualized, from 4.3%, accelerating from 3.8% in Q2, indicating robust economic recovery that could drive increased business investment and consumer spending.
- Contained Inflation Pressures: The Personal Consumption Expenditures price index rose 2.8% year-over-year, with core PCE steady, suggesting that inflation remains manageable, which enhances market confidence in the Federal Reserve's policies and may help maintain a low interest rate environment.
- Tech Stock Rebound: Meta Platforms saw a more than 5% increase in stock price after Jefferies highlighted its attractive valuation, further boosting investor interest in tech stocks, potentially leading to increased capital inflows into the sector.
See More
Inspire Medical Systems Board Under Investigation, 2025 Earnings Guidance Cut by Over 80%
- Board Investigation: The Law Offices of Frank R. Cruz is investigating whether the board of directors of Inspire Medical Systems breached its fiduciary duties to shareholders, potentially exposing them to financial losses.
- Product Launch Delay: The launch of the Inspire V sleep apnea device is facing an 'elongated timeframe' due to several issues, including many centers failing to complete necessary training and contracting criteria, which impacts device purchase and implantation.
- Earnings Guidance Cut: The company has drastically reduced its 2025 earnings guidance from $2.20-$2.30 per share to $0.40-$0.50 per share, reflecting severe impacts from weak market demand and excess inventory.
- Stock Price Plunge: On August 5, 2025, Inspire's stock price plummeted by $42.04, or 32.4%, closing at $87.91 per share, significantly harming investor interests.
See More
Inspire Medical Systems (INSP) Downgraded by Oppenheimer, Shares Drop 12%
- Rating Downgrade Impact: Oppenheimer downgraded Inspire Medical Systems from outperform to perform due to CMS's update indicating that obstructive sleep apnea is no longer a covered indication under the vagus nerve stimulation National Coverage Determination, leading analyst Suraj Kalia to predict a potential recalibration of FY26 guidance.
- Increased Sales Pressure: The dynamics of new site openings and inventory sales are now under pressure, which could negatively impact Inspire's market performance, directly affecting the company's revenue and market share.
- Stock Price Volatility: Inspire's shares dropped 12% in Thursday afternoon trading, reflecting investor concerns about the company's future profitability, particularly in light of the recent changes in healthcare policy.
- Acquisition Potential Diminished: Kalia noted that while Inspire may have been considered a potential acquisition target, the current timing, rationale, and economic factors could raise questions about the feasibility of such a move, impacting the company's strategic direction.
See More
Inspire Medical Systems (INSP) Projects $912M Revenue for 2025 and Appoints New CFO
- Quarterly Revenue Growth: Inspire Medical Systems anticipates fourth-quarter revenue between $268.9 million and $269.1 million, reflecting a 12% year-over-year increase, indicating strong market performance and sustained growth potential.
- Annual Performance Outlook: The company projects full-year 2025 revenue of $911.8 million to $912.0 million, representing a 14% increase from 2024, showcasing robust development in the medical device sector and rising market demand.
- Future Revenue Projections: For fiscal 2026, Inspire expects revenue between $1.003 billion and $1.013 billion, implying a year-on-year growth of 10% to 11%, demonstrating management's confidence in future business growth and optimistic market outlook.
- Executive Appointment: Matt Osberg has been appointed as CFO, bringing over 20 years of global financial leadership experience, which is expected to enhance the company's strategic transformation and financial management optimization.
See More
