INSP Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Inspire Medical Systems Inc (INSP) is not a strong buy at this moment for a beginner investor with a long-term strategy. The stock is facing significant headwinds from reimbursement uncertainties, multiple analyst downgrades, and bearish technical indicators. While the company has shown positive financial growth in the latest quarter, the lack of clarity on future reimbursement policies and the absence of strong trading signals make it prudent to hold off on investing for now.
The technical indicators are bearish. The MACD is negatively expanding, RSI indicates an oversold condition at 14.421, and moving averages are in a bearish alignment (SMA_200 > SMA_20 > SMA_5). Key support levels are at 56.872 and 50.531, with resistance at 67.136 and 77.401. The stock is trading below its pivot point, suggesting continued downward pressure.
The company reported strong financial performance in Q4 2025, with revenue up 12.25% YoY, net income up 286.36% YoY, and EPS up 301.72% YoY. Gross margins also improved slightly to 86.59%.
Significant reimbursement uncertainties have led to multiple analyst downgrades and reduced price targets. The Centers for Medicare & Medicaid Services' coding changes have created headwinds, and analysts have expressed concerns about physician disincentives and competitive disadvantages. The stock is also underperforming technically, with bearish indicators and no recent positive trading signals.
In Q4 2025, Inspire Medical Systems reported revenue of $269.1 million, up 12.25% YoY, with net income increasing by 286.36% YoY to $136.09 million. EPS grew by 301.72% YoY to 4.66, and gross margins improved to 86.59%. However, operating expenses have risen, and the company has lowered its 2026 revenue guidance due to coding uncertainties.
Analysts have downgraded the stock significantly. Baird, Wells Fargo, RBC Capital, Oppenheimer, and Truist have all downgraded their ratings, citing reimbursement uncertainties and coding headwinds. Price targets have been slashed, with the most optimistic target being $125 (Evercore ISI) and the lowest at $70 (Wells Fargo). The overall sentiment from analysts is cautious, with a focus on the lack of clarity in the company's growth outlook.
