Top 5 Stock Picks of Brad Farber’s Atika Capital

In this article, we discuss the top 5 stock picks of Brad Farber’s Atika Capital. If you want our detailed analysis of these stocks, go directly to the Top 10 Stock Picks of Brad Farber’s Atika Capital.

5. Inspire Medical Systems, Inc. (NYSE:INSP)

Atika Capital’s Stake Value: $32,626,000

Percentage of Atika Capital’s 13F Portfolio: 1.94%

Number of Hedge Fund Holders: 32

Inspire Medical Systems, Inc. (NYSE:INSP) is a medical company dedicated to treating sleep apnea with its FDA approved obstructive sleep apnea device. Atika Capital, as of Q3, owns 140,100 shares in Inspire Medical Systems, Inc. (NYSE:INSP), worth $32.62 million, representing 1.94% of the firm’s total investments. 

Marshall Wace LLP is the leading stakeholder in Inspire Medical Systems, Inc. (NYSE:INSP) as of September this year. Of the 873 hedge funds tracked by Insider Monkey, 32 funds were bullish on Inspire Medical Systems, Inc. (NYSE:INSP) as of Q2, up from 28 in the preceding quarter. 

Q3 EPS for Inspire Medical Systems, Inc. (NYSE:INSP) on November 2 totaled -$0.38, exceeding estimates by $0.26. Revenue for the period equaled $61.69 million, up 72.10% year-over-year. 

Lake Street analyst Frank Takkinen on November 3 raised the price target on Inspire Medical Systems, Inc. (NYSE:INSP) to $320 from $260 and kept a Buy rating on the stock after Inspire Medical Systems, Inc. (NYSE:INSP) outperformed on revenue in the third quarter, opened new centers, and established new territory. He raised the FY21 revenue guidance as well. 

Here is what Headwaters Capital has to say about Inspire Medical Systems, Inc. (NYSE:INSP) in its Q2 2021 investor letter:

“Top Detractor: Inspire Medical Systems (INSP) -7%. Inspire’s underperformance during the quarter was largely driven by Q1 results where the company raised full year revenue guidance by less than expected combined with commentary that the company might increase spending, which would delay the company’s path to break even profitability. I believe management’s full year revenue guidance is conservative based on the cadence of new center openings combined with positive utilization trends seen during Q1. Additionally, following the release of Q1 results, Anthem (second largest health insurer) announced that they would begin providing insurance coverage for INSP’s sleep apnea product, which should provide additional support for revenue growth later in the year.”