Inogen Earnings Uncertainty Leads to Downgrade: Valuation Argument Weakened

Inogen's stock has fallen by 35% over the last two years, prompting a rating downgrade from a Buy to an unknown rating. Despite initial expectations, the company's earnings uncertainty has weakened its valuation argument. The stock price dropped by 5% to $6.35 on July 18, 2025.

Inogen, Inc. (NASDAQ:INGN), a leading company in the medical technology sector specializing in respiratory products for homecare, has seen its stock price fall by approximately 35% over the last two years. This significant decline has prompted a rating downgrade from a Buy to an unknown rating. The stock price dropped by 5% to $6.35 on July 18, 2025 [1].

The company's earnings uncertainty has weakened its valuation argument, making it difficult for investors to predict future performance. Inogen has faced several challenges, including the acquisition of Physio-Assist SAS, a private French company developing technology called Simeox to treat bronchiectasis. The acquisition was not earnings-accretive until 2027, and the company spent a significant amount of cash on the deal [1].

Management changes have also contributed to the stock's decline. Inogen has experienced high levels of organizational change, with multiple executives leaving or being replaced in a short period. This instability has increased the risk of disruption and distraction, further complicating the company's ability to execute its strategic plans [1].

Despite these challenges, Inogen has made progress in securing FDA approval for its SIMEOX 200 Airway Clearance Device, which is designed to help patients with chronic lung diseases. The company also entered into a strategic collaboration with Yuwell, a Chinese medical equipment manufacturer, to distribute certain respiratory products in the USA and other regions [1].

Inogen is expected to report its second quarter 2025 financial results on August 7, 2025, after the market closes. A conference call to discuss the results will be held at 2:00 p.m. PT / 5:00 p.m. ET on the same day [2].

References:
[1] https://seekingalpha.com/article/4802852-inogen-stock-earnings-uncertainty-weakens-valuation-argument
[2] https://www.gurufocus.com/news/2984130/inogen-to-report-second-quarter-2025-financial-results-on-august-7-2025-ingn-stock-news