Inspire Medical Systems (INSP) Stock Trades Down, Here Is Why

What Happened?

Shares of medical technology company Inspire Medical Systems (NYSE:INSP) fell 12.4% in the afternoon session after new concerns arose over medical billing codes for its main therapy. 

The issue stemmed from two Medicare Administrative Contractors, Noridian and CGS, who removed a key billing code for Hypoglossal Nerve Stimulations. This move created uncertainty about future payments for the company's treatment.

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What Is The Market Telling Us

Inspire Medical Systems’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. But moves this big are rare even for Inspire Medical Systems and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock dropped 41.3% on the news that the company slashed its full-year revenue and profit forecasts, a move that overshadowed a second-quarter earnings beat. 

The medical device maker lowered its 2025 revenue projection to a range of $900 million to $910 million, a significant drop from its previous estimate of $940 million to $955 million. The company also drastically reduced its net income per share guidance. Management attributed the weaker outlook to a slower-than-expected U.S. launch of its new Inspire V device, inventory issues with an older model, and some patients who delayed therapy to try GLP-1 weight loss drugs. In response to the disappointing forecast, several Wall Street firms, including JPMorgan and KeyBanc, downgraded the stock.

Inspire Medical Systems is down 8.8% since the beginning of the year, and at $84.13 per share, it is trading 57.4% below its 52-week high of $197.38 from February 2025. Investors who bought $1,000 worth of Inspire Medical Systems’s shares 5 years ago would now be looking at an investment worth $380.98.

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