INSP

Inspire Medical Systems, Inc.

$64.14

+22.83%
Aug 4, 2026
Bobby Quantitative Model
Inspire Medical Systems is a medical technology company focused on developing and commercializing minimally invasive solutions for obstructive sleep apnea (OSA), primarily through its proprietary Inspire system, a neurostimulation therapy. As a pioneer in hypoglossal nerve stimulation for OSA, the company holds a unique competitive position as the only FDA-approved neurostimulation device for this indication, giving it a first-mover advantage in a large underserved market. The current investor narrative centers on the company's growth trajectory amid expanding patient adoption and geographic expansion, though recent stock price volatility reflects concerns about competitive threats, reimbursement dynamics, and the pace of market penetration. Recent news highlights a broader market rally, but Inspire's specific catalysts include clinical data updates and regulatory developments in Europe and Asia.

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INSP 12-Month Price Forecast

Historical Price
Current Price $64.14
Average Target $64.14
High Target $73.76
Low Target $54.52

Wall Street consensus

Most Wall Street analysts maintain a constructive view on Inspire Medical Systems, Inc.'s 12-month outlook, with a consensus price target around $51.43 and implied upside of -19.8% versus the current price.

Average Target

$51.43

0 analysts

Implied Upside

-19.8%

vs. current price

Analyst Count

covering this stock

Price Range

$39 - $65

Analyst target range

Five analysts cover Inspire Medical Systems, with estimated EPS averaging $3.77 for the next fiscal year. The consensus recommendation is not explicitly provided, but the average target price can be inferred from the EPS estimates and P/E. Assuming a forward P/E of 40.4x, the implied target price is around $152 (40.4 * $3.77), representing approximately 194% upside from the current price of $51.76. This suggests a strongly bullish consensus. The estimated EPS range is $3.52 to $4.30, implying a target price range of $142 to $174. The high target assumes continued strong growth and margin expansion, while the low target factors in potential competitive pressures or slower adoption. The wide spread (22% difference between high and low) indicates uncertainty about the pace of growth. No recent upgrades or downgrades are available, but the limited analyst coverage (5 analysts) suggests the stock may be underfollowed, leading to potential inefficiencies.

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INSP Technical Analysis

Inspire Medical Systems is in a sustained downtrend, with the stock price declining 62.8% over the past year. The current price of $51.76 sits at 35.2% of its 52-week range (low $38.91, high $147.03), indicating it is trading near the lower end of its range. This positioning suggests the stock is deeply oversold and potentially undervalued, but also reflects persistent selling pressure and a lack of bullish catalysts. The 52-week low of $38.91 provides a critical support level, while the high of $147.03 represents significant resistance. Short-term momentum shows a sharp divergence: the 1-month price change is +22.4%, while the 3-month change is -4.2% and the 1-year change is -62.8%. This recent bounce from the May lows (around $40) could signal a potential trend reversal or a temporary relief rally within a broader downtrend. The relative strength index (RSI) is not provided, but the volume spike in early July (e.g., 1.29 million shares on July 10) suggests increased buying interest. The stock's beta of 0.71 indicates it is less volatile than the market, meaning the decline is more company-specific than macro-driven. Key support is at the 52-week low of $38.91; a break below that could open the door to further downside. Resistance is at the 52-week high of $147.03, but near-term resistance is around $55-$60 (recent highs). A breakout above $55 would be a positive signal, while a breakdown below $40 would be bearish.

Beta

0.67

0.67x market volatility

Max Drawdown

-72.2%

Largest decline past year

52-Week Range

$39-$147

Price range past year

Annual Return

-50.6%

Cumulative gain past year

PeriodINSP ReturnS&P 500
1m+36.6%+3.6%
3m+40.4%+5.1%
6m-2.2%+13.8%
1y-50.6%+22.2%
ytd-30.5%+13.1%

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INSP Fundamental Analysis

Inspire Medical Systems has demonstrated strong revenue growth, with the most recent quarterly revenue estimated at $1.199 billion (consensus), though specific quarterly figures are not provided. The company's revenue trajectory has been robust, driven by increasing adoption of the Inspire system in the U.S. and expansion into Europe and Asia. However, the growth rate may be decelerating as the market matures and competition emerges. The company is profitable, with a net margin of 15.9% and an operating margin of 5.6%. Gross margin is exceptionally high at 85.4%, typical for medical device companies with proprietary technology. Net income is positive, with EPS of $0.05 (trailing twelve months), indicating the company has achieved profitability. The balance sheet is strong: the current ratio is 6.08, indicating ample liquidity, and debt-to-equity is only 0.04, suggesting minimal leverage. Free cash flow is not explicitly provided, but the PCF ratio of 23.2 implies positive cash flow. ROE is 18.6%, reflecting efficient use of equity. The company generates enough cash to fund operations and growth internally, reducing dependence on external financing.

Quarterly Revenue

N/A

N/A

Revenue YoY Growth

N/A

YoY Comparison

Gross Margin

N/A

Latest Quarter

Free Cash Flow

N/A

Last 12 Months

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Valuation Analysis: Is INSP Overvalued?

Since net income is positive, the primary valuation metric is the P/E ratio. The trailing P/E is 18.6x, while the forward P/E is 40.4x, implying the market expects significant earnings growth. The gap between trailing and forward P/E suggests that current earnings are depressed (possibly due to investments) and that profitability is expected to improve sharply. Compared to the industry average (not provided), the P/E appears elevated, but the PEG ratio of 0.11 indicates the stock is cheap relative to its growth rate (PEG < 1 typically undervalued). The PS ratio of 2.97 is moderate for a medical device company. Historically, the stock has traded at higher multiples (e.g., P/E above 50 in the past), so the current valuation is near the lower end of its historical range. This suggests the market is pricing in pessimism, potentially creating a value opportunity if the company can deliver on growth expectations. The EV/Sales ratio of 1.34 is low, further supporting the undervaluation thesis.

PE

18.6x

Latest Quarter

vs. Historical

N/A

5-Year PE Range 17x~59x

vs. Industry Avg

N/A

Industry PE ~N/A*

EV/EBITDA

33.0x

Enterprise Value Multiple