Universal Beteiligungs Cuts Stake in Inspire Medical Systems by 66.5%

In a recent filing with the Securities and Exchange Commission, Universal Beteiligungs und Servicegesellschaft mbH announced a significant reduction in its holdings of Inspire Medical Systems, Inc. The investment firm decreased its position by 66.5% during the second quarter, now owning 6,207 shares valued at approximately $805,000 after selling 12,328 shares.

This move reflects a broader trend among institutional investors regarding their stakes in Inspire Medical Systems (NYSE: INSP). Notably, several other hedge funds have made adjustments to their holdings in the company. For example, Goldman Sachs Group Inc. increased its position by 57.9% during the first quarter, acquiring an additional 18,857 shares to reach a total of 51,422 shares valued at $8.19 million. Similarly, Nordea Investment Management AB entered a new position valued at around $1.63 million in the second quarter.

Bayforest Capital Ltd made a dramatic increase in its stake by 2,465.9% during the first quarter, now holding 5,491 shares worth $875,000. KLP Kapitalforvaltning AS also raised its holdings by 10.5% in the same quarter, acquiring an additional 600 shares to reach 6,300 shares valued at $818,000. Finally, Aberdeen Group plc doubled its stake, now owning 243,102 shares valued at $31.55 million after purchasing an additional 121,741 shares.

Institutional investors and hedge funds collectively own 94.91% of Inspire Medical Systems, highlighting the company’s appeal to large-scale investors.

Stock Performance and Recent Developments

On the market, Inspire Medical Systems opened at $127.71 recently. The stock has experienced considerable volatility, with a 52-week low of $70.77 and a high of $216.01. The company currently maintains a market capitalization of $3.71 billion, with a price-to-earnings ratio of 86.88 and a beta of 1.14. The stock’s 50-day and 200-day simple moving averages stand at $83.45 and $105.88, respectively.

In a strategic decision, Inspire Medical Systems announced on August 11, 2023, the initiation of a stock buyback program, allowing for the repurchase of up to $200 million in outstanding shares. This program permits the company to buy back approximately 8.6% of its shares through open market transactions, which often signals management’s belief that the stock is undervalued.

Analyst Insights and Ratings Changes

Recent research reports from various equity analysts provide mixed perspectives on Inspire Medical Systems. Jefferies Financial Group maintained a “hold” rating but adjusted its price target down to $85.00, down from a previous $160.00. Conversely, Wells Fargo & Company upgraded its rating from “equal weight” to “overweight,” although it lowered its price target from $101.00 to $90.00.

Mizuho set a price target of $110.00 on October 24, 2023, while Zacks Research upgraded its rating from “strong sell” to “hold.” Wolfe Research has also raised its outlook, moving from “peer perform” to “outperform” and establishing a target price of $180.00.

Overall, ten analysts have given the stock a “buy” rating, six have recommended a “hold,” and one has assigned a “sell” rating. Based on data from MarketBeat.com, the stock currently enjoys a consensus rating of “Moderate Buy” with an average target price of $134.88.

Inspire Medical Systems, Inc. is dedicated to developing and commercializing minimally invasive solutions for patients suffering from obstructive sleep apnea (OSA). Its flagship product, the Inspire system, utilizes neurostimulation technology to provide effective treatment for moderate to severe cases of OSA.

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