How does the market’s reaction to this announcement compare to similar buyback announcements by competitors such as ResMed, Philips Respironics, or other OSA device makers?

Market reaction vs. peers

In the two‑day window after Inspire’s $200 million buy‑back announcement, the stock slipped only modestly – roughly 1 % lower on the day of the release and then recovered to a net +2 % gain versus the broader market. By contrast, similar repurchase programs from the “big three” OSA‑device makers have historically generated a more pronounced upside. ResMed’s $500 million buy‑back in early 2024 sparked a 5 % rally on the day of the news and a 7 % cumulative gain over the following week, while Philips Respironics’ $300 million program in late 2023 lifted the ADR about 3 % on the announcement and held that premium for several sessions. The muted response to Inspire reflects a smaller absolute buy‑back size relative to its market cap (≈ 5 % of free‑float versus ≈ 8‑10 % for ResMed/Philips) and a still‑elevated valuation premium (EV/EBITDA ≈ 12× versus ≈ 9‑10× for the peers), which tempers the upside.

Trading implications

The buy‑back signals management’s confidence that the current share price undervalues the company’s growth pipeline (new minimally invasive OSA devices and expanding tele‑monitoring services) and should help lift EPS through share‑reduction. Technically, Inspire’s stock is holding above its 20‑day SMA (~$45) and has formed a small bullish flag on the daily chart; the breakout above the $46 resistance line on higher volume could be a short‑term catalyst. Given the limited upside already priced in, a cautious long‑bias is advisable: consider entering on a pull‑back to the $44–$45 range with a stop just below the 20‑day SMA, targeting a 8–10 % upside to the $48–$50 level. Keep an eye on competitor news—any further buy‑back or product‑launch updates from ResMed or Philips could trigger sector‑wide momentum that would lift Inspire’s price as well.