Should You Buy Inspire Medical Systems Inc (INSP) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
78.540
1 Day change
-4.23%
52 Week Range
203.120
Analysis Updated At
2026/01/26
Inspire Medical Systems Inc (INSP) is not a good buy for a beginner investor with a long-term strategy at this moment. The stock is facing significant headwinds due to regulatory changes, weak financial performance, and negative sentiment from analysts. While there is potential for recovery in the long term, the current environment is unfavorable for immediate investment.
Technical Analysis
The technical indicators are bearish. The MACD histogram is negative and expanding, RSI is at 22.7 indicating oversold conditions, and moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with S1 at 81.301 and S2 at 75.426.
Options Data
Neutral
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Technical Summary
Sell
11
Buy
4
Positive Catalysts
The company's gross margin increased by 2.13% YoY in Q3 2025, and the broader Obstructive Sleep Apnea (OSA) market remains large and intact for potential future growth.
Neutral/Negative Catalysts
Significant regulatory challenges due to CMS reimbursement changes have negatively impacted the company's profitability. Analysts have downgraded the stock, citing weak demand and excess inventory. The board is under investigation for potential fiduciary duty breaches, and the company has cut its 2025 earnings guidance by over 80%.
Financial Performance
In Q3 2025, revenue increased by 10.49% YoY to $224.5M. However, net income dropped by 46.30% YoY to $9.93M, and EPS fell by 43.33% YoY to $0.34. This indicates declining profitability despite revenue growth.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
The stock has received multiple downgrades recently. Oppenheimer downgraded it to Perform from Outperform, Evercore ISI maintained an Outperform rating with a $125 price target, and Truist downgraded it to Hold with a reduced price target of $96. Analysts are concerned about the reimbursement challenges and weak market demand.
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 USD and a high forecast of 180 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 USD and a high forecast of 180 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
Averages
145.31
High
180
Current: 82.010
Low
91
Averages
145.31
High
180
RBC Capital
Outperform -> Sector Perform
downgrade
$175 -> $90
AI Analysis
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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