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Shares of Inspire Medical Systems, Inc. (INSP) slumped 42% on Tuesday after multiple analysts downgraded the stock on the heels of the company lowering its full-year earnings guidance.

The company, which develops solutions for patients with obstructive sleep apnea, cut its full-year revenue guidance on Monday to the range of $900 million to $910 million, down from its previous guidance of $940 to $955 million.

Truist downgraded Inspire Medical to ‘Hold’ from ‘Buy’ with a price target of $125, down from $190. The firm was braced for a guidance cut, but it was bigger than expected, and a lower earnings per share outlook reduces the stock valuation floor, the analyst told investors in a post-earnings note.

On Stocktwits, retail sentiment around INSP jumped from ‘neutral’ to ‘extremely bullish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘extremely high’ levels.

A Stocktwits user opined that the shares are way oversold and will bounce in a few days.

Inspire now anticipates diluted net income per share guidance for the full year 2025 to be in the range of $0.40 to $0.50, down from its prior guidance of $2.20 to $2.30 per share.

Other analysts, too, have downgraded the stock or have cut their price target.

• KeyBanc downgraded the shares to ‘Sector Weight’ from ‘Overweight’ without a price target. 
• JPMorgan analyst Robbie Marcus downgraded Inspire Medical to ‘Neutral’ from ‘Overweight’ with a price target of $110, down from $195. 
• Piper Sandler kept its ‘Overweight’ rating on the stock while lowering the price target on the shares to $150 from $233. While the firm believed there could be a downward revision, it was disappointed by the magnitude of the cut to both the top and bottom-line guides, it said.

INSP stock is down by 59% this year and by 48% over the past 12 months.
 

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