Inspire Medical Systems (NYSE:INSP) Shares Gap Up on Earnings Beat

Inspire Medical Systems, Inc. (NYSE:INSP) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $73.71, but opened at $80.01. Inspire Medical Systems shares last traded at $86.2350, with a volume of 810,988 shares.

The company reported $0.38 earnings per share for the quarter, beating the consensus estimate of ($0.15) by $0.53. Inspire Medical Systems had a return on equity of 10.38% and a net margin of 6.17%.The company had revenue of $224.50 million for the quarter, compared to the consensus estimate of $220.39 million. During the same period last year, the business posted $0.60 EPS. The company’s revenue was up 10.5% on a year-over-year basis.

Inspire Medical Systems announced that its board has authorized a share buyback plan on Monday, August 11th that allows the company to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 8.6% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on INSP shares. Wall Street Zen cut Inspire Medical Systems from a “buy” rating to a “hold” rating in a report on Saturday, July 26th. Lake Street Capital set a $150.00 target price on Inspire Medical Systems and gave the company a “buy” rating in a research note on Tuesday, August 5th. KeyCorp reiterated a “sector weight” rating on shares of Inspire Medical Systems in a research note on Tuesday. Mizuho set a $110.00 target price on Inspire Medical Systems in a research note on Tuesday. Finally, UBS Group set a $89.00 price target on Inspire Medical Systems and gave the company a “neutral” rating in a research report on Monday, September 22nd. Eight analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Inspire Medical Systems presently has an average rating of “Hold” and a consensus target price of $136.75.

Insider Buying and Selling at Inspire Medical Systems

In other news, CFO Richard Buchholz sold 11,000 shares of the company’s stock in a transaction dated Friday, August 29th. The stock was sold at an average price of $93.39, for a total value of $1,027,290.00. Following the completion of the sale, the chief financial officer owned 44,867 shares of the company’s stock, valued at $4,190,129.13. This represents a 19.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Inspire Medical Systems

Several institutional investors and hedge funds have recently modified their holdings of the stock. GAMMA Investing LLC increased its position in Inspire Medical Systems by 253.7% in the first quarter. GAMMA Investing LLC now owns 573 shares of the company’s stock worth $91,000 after buying an additional 411 shares during the period. New York State Teachers Retirement System increased its position in Inspire Medical Systems by 132.7% in the first quarter. New York State Teachers Retirement System now owns 21,390 shares of the company’s stock worth $3,407,000 after buying an additional 12,196 shares during the period. Principal Financial Group Inc. increased its position in Inspire Medical Systems by 1.0% in the first quarter. Principal Financial Group Inc. now owns 147,768 shares of the company’s stock worth $23,536,000 after buying an additional 1,458 shares during the period. Envestnet Asset Management Inc. increased its position in Inspire Medical Systems by 33.1% in the first quarter. Envestnet Asset Management Inc. now owns 34,151 shares of the company’s stock worth $5,440,000 after buying an additional 8,484 shares during the period. Finally, Values First Advisors Inc. acquired a new stake in Inspire Medical Systems in the first quarter worth $329,000. Hedge funds and other institutional investors own 94.91% of the company’s stock.

Inspire Medical Systems Price Performance

The company has a 50-day simple moving average of $80.37 and a two-hundred day simple moving average of $112.89. The stock has a market capitalization of $2.50 billion, a price-to-earnings ratio of 48.92, a price-to-earnings-growth ratio of 2.42 and a beta of 1.14.

About Inspire Medical Systems

Inspire Medical Systems, Inc, a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA) in the United States and internationally. The company offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe OSA.