InMode Evaluates Strategic Alternatives, Shares Rise 4.3%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy INMD?
Source: seekingalpha
- Strategic Review Initiated: InMode announced it is evaluating strategic alternatives and has formed a committee of independent directors to oversee the review process, responding to Steel Partners' non-binding acquisition proposal, which could significantly influence the company's future direction.
- Acquisition Proposal Details: Steel Partners confirmed it has made an $18 per share bid to acquire 51% of InMode's outstanding shares, indicating recognition of the company's value and potentially prompting a market reassessment of InMode's future strategies.
- Transaction Uncertainty: InMode stated that there can be no assurance that the review will result in a transaction or any other strategic outcome, which may affect investor confidence despite the stock price increase following the announcement.
- Positive Market Reaction: Following the news, InMode's shares rose 4.3%, reflecting market optimism regarding the potential acquisition while highlighting investor interest in the company's strategic adjustments.
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Analyst Views on INMD
Wall Street analysts forecast INMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for INMD is 17.33 USD with a low forecast of 15.00 USD and a high forecast of 21.00 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.
5 Analyst Rating
1 Buy
4 Hold
0 Sell
Hold
Current: 14.820
Low
15.00
Averages
17.33
High
21.00
Current: 14.820
Low
15.00
Averages
17.33
High
21.00
About INMD
Inmode Ltd is an Israel-based global provider of energy-based, minimally-invasive surgical medical treatment solutions. Company's products and solutions are primarily designed to address three energy-based treatment categories comprised of: face and body contouring; medical aesthetics; and women’s health. The Company have developed and commercialized products utilizing medically-accepted RF energy technology, which can penetrate deep into the subdermal fat, allowing adipose tissue remodeling. It's RF energy-based proprietary technologies - Radio Frequency Assisted Lipolysis (RFAL), Deep Subdermal Fractional RF, Simultaneous Fat Destruction and Skin Tightening and Deep Heating Collagen Remodeling for skin and human natural openings- represent a paradigm shift in the minimally-invasive aesthetic solutions market. These technologies are used by physicians to remodel subdermal adipose, or fatty tissue in a variety of procedures.
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.
InMode Evaluates Strategic Alternatives, Shares Rise 4.3%
- Strategic Review Initiated: InMode announced it is evaluating strategic alternatives and has formed a committee of independent directors to oversee the review process, responding to Steel Partners' non-binding acquisition proposal, which could significantly influence the company's future direction.
- Acquisition Proposal Details: Steel Partners confirmed it has made an $18 per share bid to acquire 51% of InMode's outstanding shares, indicating recognition of the company's value and potentially prompting a market reassessment of InMode's future strategies.
- Transaction Uncertainty: InMode stated that there can be no assurance that the review will result in a transaction or any other strategic outcome, which may affect investor confidence despite the stock price increase following the announcement.
- Positive Market Reaction: Following the news, InMode's shares rose 4.3%, reflecting market optimism regarding the potential acquisition while highlighting investor interest in the company's strategic adjustments.
See More
InMode Evaluates Acquisition Proposal from Steel Partners
- Acquisition Proposal Evaluation: InMode is currently evaluating a non-binding proposal from Steel Partners to acquire 51% of its outstanding shares, indicating the company's attentiveness to market dynamics and its focus on potential strategic alternatives.
- Independent Committee Formation: The company has established a committee of independent directors to oversee the evaluation of the acquisition proposal and has retained independent legal and financial advisors to ensure transparency and compliance in the review process.
- Response to Market Rumors: While the company typically refrains from commenting on market rumors, this statement underscores its commitment to transparency with investors, aiming to protect shareholder interests and bolster market confidence.
- Future Uncertainty: The company has not assured that the evaluation will lead to a transaction or any other strategic outcome, highlighting the current market environment's uncertainty and its impact on future decision-making.
See More
Musk Considers Merging His Business Empire
- Potential Merger Plans: Elon Musk is reportedly considering merging SpaceX, Tesla, and xAI, with a SpaceX-Tesla deal potentially leveraging Tesla's energy storage and solar capabilities for space infrastructure, enhancing synergies in both space and energy sectors.
- Investment Context: Tesla's recent $2 billion investment in xAI not only underscores its commitment to the AI sector but may also lay the groundwork for future mergers, further driving technological integration and market competitiveness.
- IPO Considerations: While SpaceX is exploring an IPO, Musk's merger plans could impact investor confidence in SpaceX's independent growth trajectory, potentially causing short-term fluctuations in its stock price.
- Industry Dynamics: In other M&A news, Mitsubishi Electric completed its $1 billion acquisition of cybersecurity firm Nozomi Networks, reflecting ongoing market interest in technology and security integrations, which may provide insights for Musk's merger considerations.
See More
Steel Partners Proposes Acquisition of Controlling Stake in InMode
- Acquisition Proposal: Steel Partners has proposed to acquire 51% of InMode's shares at $18 each, representing a 29% premium over the January 23 closing price, demonstrating a commitment to cash returns for InMode shareholders while reflecting an assessment of the company's business and growth outlook.
- Poor Shareholder Returns: InMode has reported total shareholder returns of negative 19.18% over the past year, negative 59.35% over three years, and negative 53.24% over five years, indicating persistent underperformance in capital allocation and guidance, which Steel Partners strongly criticizes.
- Cash Flow and Debt Situation: As of Q3 2025, InMode holds $532.3 million in cash, nearly half of its market capitalization, with no debt; Steel Partners argues that the company has failed to effectively return cash to shareholders and leverage its cash position to enhance shareholder value.
- Frequent Guidance Cuts: InMode has made seven guidance cuts over the past nine quarters, with the latest fiscal 2025 sales forecast falling short of market consensus, prompting Steel Partners to indicate that if discussions with InMode's management do not progress, they may pursue a binding offer directly to shareholders.
See More
Steel Partners Offers to Acquire Majority Stake in Inmode
- Acquisition Proposal: Steel Partners Holdings has offered to acquire a 51% stake in Inmode for $18 per share, valuing the deal at approximately $558 million, indicating strong interest in the medical aesthetics company and potential enhancement of its market position.
- Stock Price Reaction: Following the announcement, Inmode's shares rose 7.5% in after-hours trading, reflecting investor optimism regarding the acquisition proposal, which may bolster the company's future capital operations.
- Management Engagement: Steel Partners has been attempting to meet with Inmode's management over the past several months to enhance shareholder value, and although their proposal was rebuffed, the ongoing engagement underscores their commitment to the acquisition.
- Market Dynamics: Prior to this, Calcalist reported that another foreign investment fund was also in talks to acquire Inmode, valuing the company at around $1.1 billion, further driving market interest and stock price volatility for Inmode.
See More
Steel Partners Proposes $18.00 Per Share Acquisition of InMode
- Acquisition Proposal: Steel Partners has proposed to acquire 51% of InMode's shares at $18.00 each, representing a 29% premium over the closing price on January 23, 2026, indicating confidence in InMode's future potential.
- Funding Source: The proposal will be fully funded through existing cash and borrowing capacity, with no financing contingencies, demonstrating Steel Partners' strong commitment and financial capability for the transaction.
- Management Interaction: Steel Partners attempted to engage in private discussions with InMode's management but was rebuffed, indicating a potential move to present a binding proposal directly to shareholders, reflecting disappointment in management communication.
- Shareholder Return Concerns: Steel Partners criticized InMode for failing to effectively return capital to shareholders despite having significant cash reserves and no debt, highlighting concerns over corporate governance and shareholder value creation.
See More
InMode Evaluates Strategic Alternatives, Shares Rise 4.3%
- Strategic Review Initiated: InMode announced it is evaluating strategic alternatives and has formed a committee of independent directors to oversee the review process, responding to Steel Partners' non-binding acquisition proposal, which could significantly influence the company's future direction.
- Acquisition Proposal Details: Steel Partners confirmed it has made an $18 per share bid to acquire 51% of InMode's outstanding shares, indicating recognition of the company's value and potentially prompting a market reassessment of InMode's future strategies.
- Transaction Uncertainty: InMode stated that there can be no assurance that the review will result in a transaction or any other strategic outcome, which may affect investor confidence despite the stock price increase following the announcement.
- Positive Market Reaction: Following the news, InMode's shares rose 4.3%, reflecting market optimism regarding the potential acquisition while highlighting investor interest in the company's strategic adjustments.
See More
InMode Evaluates Acquisition Proposal from Steel Partners
- Acquisition Proposal Evaluation: InMode is currently evaluating a non-binding proposal from Steel Partners to acquire 51% of its outstanding shares, indicating the company's attentiveness to market dynamics and its focus on potential strategic alternatives.
- Independent Committee Formation: The company has established a committee of independent directors to oversee the evaluation of the acquisition proposal and has retained independent legal and financial advisors to ensure transparency and compliance in the review process.
- Response to Market Rumors: While the company typically refrains from commenting on market rumors, this statement underscores its commitment to transparency with investors, aiming to protect shareholder interests and bolster market confidence.
- Future Uncertainty: The company has not assured that the evaluation will lead to a transaction or any other strategic outcome, highlighting the current market environment's uncertainty and its impact on future decision-making.
See More
Musk Considers Merging His Business Empire
- Potential Merger Plans: Elon Musk is reportedly considering merging SpaceX, Tesla, and xAI, with a SpaceX-Tesla deal potentially leveraging Tesla's energy storage and solar capabilities for space infrastructure, enhancing synergies in both space and energy sectors.
- Investment Context: Tesla's recent $2 billion investment in xAI not only underscores its commitment to the AI sector but may also lay the groundwork for future mergers, further driving technological integration and market competitiveness.
- IPO Considerations: While SpaceX is exploring an IPO, Musk's merger plans could impact investor confidence in SpaceX's independent growth trajectory, potentially causing short-term fluctuations in its stock price.
- Industry Dynamics: In other M&A news, Mitsubishi Electric completed its $1 billion acquisition of cybersecurity firm Nozomi Networks, reflecting ongoing market interest in technology and security integrations, which may provide insights for Musk's merger considerations.
See More
Steel Partners Proposes Acquisition of Controlling Stake in InMode
- Acquisition Proposal: Steel Partners has proposed to acquire 51% of InMode's shares at $18 each, representing a 29% premium over the January 23 closing price, demonstrating a commitment to cash returns for InMode shareholders while reflecting an assessment of the company's business and growth outlook.
- Poor Shareholder Returns: InMode has reported total shareholder returns of negative 19.18% over the past year, negative 59.35% over three years, and negative 53.24% over five years, indicating persistent underperformance in capital allocation and guidance, which Steel Partners strongly criticizes.
- Cash Flow and Debt Situation: As of Q3 2025, InMode holds $532.3 million in cash, nearly half of its market capitalization, with no debt; Steel Partners argues that the company has failed to effectively return cash to shareholders and leverage its cash position to enhance shareholder value.
- Frequent Guidance Cuts: InMode has made seven guidance cuts over the past nine quarters, with the latest fiscal 2025 sales forecast falling short of market consensus, prompting Steel Partners to indicate that if discussions with InMode's management do not progress, they may pursue a binding offer directly to shareholders.
See More
Steel Partners Offers to Acquire Majority Stake in Inmode
- Acquisition Proposal: Steel Partners Holdings has offered to acquire a 51% stake in Inmode for $18 per share, valuing the deal at approximately $558 million, indicating strong interest in the medical aesthetics company and potential enhancement of its market position.
- Stock Price Reaction: Following the announcement, Inmode's shares rose 7.5% in after-hours trading, reflecting investor optimism regarding the acquisition proposal, which may bolster the company's future capital operations.
- Management Engagement: Steel Partners has been attempting to meet with Inmode's management over the past several months to enhance shareholder value, and although their proposal was rebuffed, the ongoing engagement underscores their commitment to the acquisition.
- Market Dynamics: Prior to this, Calcalist reported that another foreign investment fund was also in talks to acquire Inmode, valuing the company at around $1.1 billion, further driving market interest and stock price volatility for Inmode.
See More
Steel Partners Proposes $18.00 Per Share Acquisition of InMode
- Acquisition Proposal: Steel Partners has proposed to acquire 51% of InMode's shares at $18.00 each, representing a 29% premium over the closing price on January 23, 2026, indicating confidence in InMode's future potential.
- Funding Source: The proposal will be fully funded through existing cash and borrowing capacity, with no financing contingencies, demonstrating Steel Partners' strong commitment and financial capability for the transaction.
- Management Interaction: Steel Partners attempted to engage in private discussions with InMode's management but was rebuffed, indicating a potential move to present a binding proposal directly to shareholders, reflecting disappointment in management communication.
- Shareholder Return Concerns: Steel Partners criticized InMode for failing to effectively return capital to shareholders despite having significant cash reserves and no debt, highlighting concerns over corporate governance and shareholder value creation.
See More
