Inspire Medical Systems, Inc. (NYSE:INSP) director Jerry C. Griffin recently engaged in trading activities involving the company's shares, according to a new SEC filing. On March 18, Griffin purchased 1,000 shares of Inspire Medical Systems stock at $16.00 per share, amounting to a total investment of $16,000. On the same day, Griffin also sold a total of 554 shares of the company's common stock. The transactions were carried out in two separate sales, with 54 shares sold at an average price of $193.53 and 500 shares sold at the same price, totaling $10,450 and $96,765 respectively.
The sales were conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a predetermined plan for buying or selling stocks at a time when they are not in possession of material non-public information. Such plans are often used to avoid any potential accusations of insider trading and to ensure compliance with securities laws.
Following these transactions, Griffin's direct ownership in Inspire Medical Systems stands at 10,190 shares, which reflects the net result of the day's buying and selling activities. The company, known for its medical devices and apparatus, has seen its stock become a subject of interest for investors tracking insider trading patterns.
Investors and market watchers often monitor insider trades to gain insights into what company executives and directors might think about their company's future prospects. While insider buying can be seen as a positive sign, indicating confidence in the company's future, insider selling does not necessarily imply a lack of confidence, as there are numerous personal and financial reasons why an insider might sell shares.
Inspire Medical Systems, headquartered in Golden Valley, Minnesota, specializes in the development and manufacture of innovative medical solutions, particularly for the treatment of sleep apnea. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol NYSE:INSP.
InvestingPro Insights
As investors consider the recent insider trading activity of Inspire Medical Systems, Inc. (NYSE:INSP), it's essential to look beyond the surface and understand the company's broader financial context. According to InvestingPro data, Inspire Medical Systems has a market capitalization of approximately $6.19 billion, indicating a substantial presence in its sector. Despite challenges reflected by a negative P/E ratio of -268.55, the company has experienced impressive revenue growth over the last twelve months as of Q4 2023, at 53.19%. This growth is a testament to the company's expanding operations and market reach.
Moreover, the company's gross profit margin stands at a robust 84.54%, a figure that showcases its ability to maintain profitability in the production of its medical devices. This high margin is particularly noteworthy given the competitive nature of the medical device industry. Notably, Inspire Medical Systems has seen a significant return over the last week, with a 7.82% price total return, which may reflect investor optimism following the insider transactions or other market dynamics.
Two InvestingPro Tips that are particularly relevant to shareholders and potential investors in this context are:
- Analysts have recently revised their earnings expectations downwards for the upcoming period, which could be indicative of short-term challenges the company may face.
- Despite not being profitable over the last twelve months, the company's liquid assets exceed its short-term obligations, suggesting a solid financial position for managing its immediate financial needs.
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