Inspire Medical Systems Inc's stock fell by 5.05% during regular trading, crossing below the 5-day SMA. This decline comes as the Nasdaq-100 is down 0.76% and the S&P 500 is down 0.11%, indicating a broader market weakness.
The significant drop in Inspire Medical's stock price is largely attributed to ongoing legal challenges, including a class action lawsuit alleging misleading statements regarding the launch of the Inspire V device. The lawsuit claims that the company failed to disclose critical issues, leading to a drastic cut in earnings guidance and a loss of investor confidence. This legal scrutiny has raised concerns about the company's future performance and financial health.
As the company prepares to release its Q4 2025 financial results, investors are closely monitoring the situation. The upcoming earnings report is expected to provide further insights into the company's operational challenges and market position, which could influence stock performance in the near term.
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
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.
13 Buy
6 Hold
0 Sell
Moderate Buy
Current: 82.010
Low
91.00
Averages
145.31
High
180.00
Current: 82.010
Low
91.00
Averages
145.31
High
180.00
RBC Capital
Outperform -> Sector Perform
downgrade
$175 -> $90
2026-01-26
New
Reason
RBC Capital
Price Target
$175 -> $90
AI Analysis
2026-01-26
New
downgrade
Outperform -> Sector Perform
Reason
RBC Capital downgraded Inspire Medical to Sector Perform from Outperform with a price target of $90, down from $175. The firm's Expert checks suggest Inspire V coding headwinds are likely to persist, creating physician disincentive and also putting them at a competitive disadvantage, the analyst tells investors in a research note. While Inspire's 2026 guidance does not include higher reimbursement, the firm is lowering its 2026 estimates on lower expected utilization.
Oppenheimer
analyst
Outperform
to
Perform
downgrade
2026-01-22
Reason
Oppenheimer
analyst
Price Target
2026-01-22
downgrade
Outperform
to
Perform
Reason
As previously reported, Oppenheimer downgraded Inspire Medical to Perform from Outperform and removed the firm's price target after the Centers for Medicare & Medicaid Services issued a correction, essentially stating "it incorrectly added Obstructive Sleep Apnea as a covered indication under the vagus nerve stimulation NCD." Billing under CPT 64582 and modifier 52 "ends up being net negative" for Inspire, says the analyst, who confesses that "the timing of our upgrade given this reimbursement blunder" was "unfortunate."
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Outperform -> Perform
downgrade
2026-01-22
Reason
Price Target
2026-01-22
downgrade
Outperform -> Perform
Reason
Oppenheimer downgraded Inspire Medical to Perform from Outperform.
Evercore ISI
Daniel Markowitz
Outperform
maintain
$125
2026-01-22
Reason
Evercore ISI
Daniel Markowitz
Price Target
$125
2026-01-22
maintain
Outperform
Reason
Evercore ISI analyst Daniel Markowitz notes that the Centers for Medicare & Medicaid Services has issued an update effectively stating that hospitals and ASCs should not qualify for a reimbursement uplift for Inspire Medical V procedures, which has been been a great source of debate over the past month. CMS clarified that the ICD-10 diagnosis code for Obstructive Sleep Apnea was incorrectly added as a covered indication for CPT code 64568 under NCD 160.18 and is now being removed. The firm believes the company's FY26 guide should be intact and notes that the stock has roughly round tripped its move from the past 3 months. Evercore has an Outperform rating on the shares with a price target of $125.
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.
