MINNEAPOLIS – Inspire Medical Systems, Inc. (NYSE: NYSE:), a company specializing in medical technology for obstructive sleep apnea (OSA), has announced that its Board of Directors has approved a share repurchase program. The company will repurchase up to $150 million of its outstanding common stock, its first repurchase initiative.
The decision to continue the share repurchase reflects Inspire’s significant progress toward continued profitability and steady revenue growth, as explained by Tim Herbert, the company’s Chairman and CEO. Herbert expressed confidence in Inspire’s financial strength, which is able to return capital to shareholders while still investing in future growth. The company cited recent FDA approval of its Inspire V therapy system as an indicator of substantial growth prospects and believes its stock is currently undervalued.
The specifics of the repurchase program, such as the timing and number of shares to be repurchased, will be determined by Inspire and may include open market transactions, private negotiations, or other means. There is no obligation for the company to acquire a certain number of shares, and the program can be adjusted, paused, or stopped at any time. The initiative will expire on August 5, 2026, unless the Council decides to terminate 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 the treatment of moderate to severe OSA. Despite forward-looking statements in press releases, potential risks and uncertainties may affect 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 seeking more information are previously directed to contact Ezgi Yagci, Vice President of Investor Relations. However, this article is based solely on press release statements and does not include additional commentary or speculation regarding 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, beating the consensus estimate of $186.3 million by about 5%. The strong sales performance was driven by the US market, which recorded sales of $187.8 million, exceeding the $180.3 million expected. Following the results, Inspire Medical has adjusted its full-year 2024 sales guidance to 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 become President and CEO of the medical device company focused on personalized cardiology. In response to this executive’s departure, Inspire Medical has begun a search for a suitable replacement.
In terms of analyst ratings, Jefferies maintained its Buy rating on Inspire Medical, despite lowering its price target to $230 from $265. In addition, Truist Securities, Baird, and Mizuho Securities also maintained positive ratings while setting price targets at $217, $220, and $200, respectively. BofA Securities maintained its Neutral rating, lowering its price target from $225 to $185. This recent development provides a snapshot of the latest happenings at Inspire Medical Systems.
InvestingPro Insights
Inspire Medical Systems, Inc. (NYSE: INSP), a medical technology leader for obstructive sleep apnea, has demonstrated its commitment to shareholder value with a new share repurchase program. With a market capitalization of around $4.4 billion, the company’s financial metrics provide a detailed picture of its current position. Revenue for the last twelve months in Q1 2024 was $660.91 million, with a growth of 41.71%. This growth is a testament to the company’s innovation and market penetration.
Despite not being profitable for the past twelve months, with a negative operating income margin of -5.45%, Inspire Medical has a strong gross profit margin of 84.65%, demonstrating its efficient production and service delivery capabilities. This is in line with the company’s belief in financial strength, as noted by CEO Tim Herbert. In addition, the company’s liquid assets exceed short-term liabilities, which is an indicator of financial stability and supports the ability to buy back shares.
InvestingPro Tips highlights that Inspire Medical is expected to grow its net income this year, with analysts predicting a profit for the year. This forward-looking optimism is reflected in the company’s proactive measures to improve shareholder value. In addition, Inspire Medical Systems is trading at a high Price/Book of 7.44 times, which may indicate that the market sees potential in the company’s assets and future growth.
For investors looking for more in-depth analysis, there are additional InvestingPro Tips available on the platform, providing comprehensive insight into the financial health and future prospects of Inspire Medical Systems. Visit https://www.investing.com/pro/INSP for more insight and explore various expert tips.
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