InMode (INMD) Shares Surge 14% on Acquisition Talks Valuing Company at $1.1 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: seekingalpha
- Acquisition Talks: InMode (INMD) shares rose 14% following reports of a foreign investment fund negotiating to acquire the Israeli medical aesthetics company, with a deal valuing it at approximately $1.1 billion, reflecting market confidence in its growth potential.
- Market Capitalization: With a current market cap of $882 million, the acquisition offer significantly exceeds this valuation, indicating a reassessment of the company's asset value that may attract further investor interest.
- Sale Process Management: InMode hired Bank of America a few months ago to lead its sale process and selected the highest bid, demonstrating the company's proactive approach in maximizing shareholder value through strategic divestiture.
- Strong Financial Performance: InMode reported a non-GAAP EPS of $0.38 for Q3 2025, beating estimates by $0.03, with revenue of $93.2 million exceeding expectations by $2.26 million, further bolstering market confidence in its acquisition value.
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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: 15.120
Low
15.00
Averages
17.33
High
21.00
Current: 15.120
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.
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.
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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.
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