MINNEAPOLIS - Inspire Medical Systems, Inc. (NYSE: NYSE:INSP), a company specializing in medical technology for obstructive sleep apnea (OSA), has revealed that its Board of Directors has approved a share repurchase program. The company is set to buy back up to $150 million of its outstanding common stock, marking its first repurchase initiative.
The decision to proceed with stock repurchases reflects Inspire's significant progress towards sustained profitability and robust revenue growth, as described by Tim Herbert, the company's Chairman and CEO. Herbert expressed confidence in the financial strength of Inspire, which enables the return of capital to shareholders while still investing in future growth. The company cites the recent FDA approval of its Inspire V therapy system as an indicator of its substantial growth prospects and believes its stock is currently undervalued.
The repurchase program's specifics, such as timing and quantity of shares to be bought back, will be determined by Inspire and may include open market transactions, private negotiations, or other methods. There is no obligation for the company to acquire any particular number of shares, and the program may be adjusted, paused, or stopped at any time. The initiative is set to expire on August 5, 2026, unless the Board decides to end or extend it earlier, or until the allocated funds are exhausted.
Inspire's proprietary therapy is the first and only neurostimulation technology approved by the FDA, EU MDR, and PDMA for treating moderate to severe OSA. Despite the forward-looking statements in the press release, potential risks and uncertainties could impact the company's performance and achievements. These include market acceptance, economic conditions, regulatory actions, and the competitive landscape in the healthcare industry.
Investors and media looking for further information were previously directed to contact Ezgi Yagci, Vice President of Investor Relations. However, this article is based solely on the press release statement and does not include any additional commentary or speculation on the company's future prospects or broader industry trends.
In other recent news, Inspire Medical Systems reported preliminary second-quarter sales of $195.9 million, a 30% year-over-year increase, exceeding the consensus estimate of $186.3 million by approximately 5%. The strong sales performance was largely driven by the U.S. market, which recorded sales of $187.8 million, surpassing the expected $180.3 million. Following these results, Inspire Medical has adjusted its full-year 2024 sales guidance to range between $788 million and $798 million, representing anticipated growth of 26% to 28% year-over-year.
In addition, the company recently announced the resignation of its Chief Operating Officer, Philip J. Ebeling, who will assume the role of President and CEO at a private cardiology-focused medical device company. In response to this executive departure, Inspire Medical has initiated a search for a suitable replacement.
In terms of analyst ratings, Jefferies maintained a Buy rating on Inspire Medical, despite reducing its price target to $230 from $265. Similarly, Truist Securities, Baird, and Mizuho Securities also maintained positive ratings while adjusting their price targets to $217, $220, and $200 respectively. BofA Securities maintained a Neutral rating, lowering its price target from $225 to $185. These recent developments provide a snapshot into the latest happenings at Inspire Medical Systems.
InvestingPro Insights
Inspire Medical Systems, Inc. (NYSE: INSP), a leader in medical technology for obstructive sleep apnea, has shown a commitment to shareholder value with its recent share repurchase program. With a market capitalization of approximately $4.4 billion, the company's financial metrics provide a detailed picture of its current standing. The revenue for the last twelve months as of Q1 2024 stands at $660.91 million, with an impressive growth of 41.71%. This growth is a testament to the company's innovation and market penetration.
Despite not being profitable over the last twelve months, with a negative operating income margin of -5.45%, Inspire Medical holds a strong gross profit margin of 84.65%, indicating efficient production and service delivery capabilities. This aligns with the company's confidence in its financial strength, as noted by CEO Tim Herbert. Additionally, the company's liquid assets surpass its short-term obligations, which is an indicator of financial stability and supports its ability to buy back shares.
InvestingPro Tips highlight that Inspire Medical is expected to see net income growth this year, with analysts predicting profitability within the year. This forward-looking optimism is reflected in the company's proactive measures to enhance shareholder value. Moreover, Inspire Medical Systems is trading at a high Price / Book multiple of 7.44, which could suggest that the market sees potential in the company's assets and future growth.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available on the platform, providing a comprehensive outlook on Inspire Medical Systems' financial health and future prospects. Visit https://www.investing.com/pro/INSP for further insights and to explore the full range of expert tips.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.