InMode Ltd. fell 8.82% amid regulatory review and sector concerns steepest drop in nearly a year

InMode Ltd. fell 8.82% in pre-market trading on Thursday, marking its steepest decline in nearly a year amid renewed investor caution around medical aesthetics stocks. The sharp selloff follows a recent regulatory review of its U.S. marketing practices and broader market concerns over valuation multiples in the sector.

Analysts noted the drop reflects a mix of technical selling and strategic rebalancing by institutional investors ahead of quarterly earnings reports. The stock has traded in a tight range over the past three months, with the recent decline breaking key support levels that had been holding since its 2023 rally. Short-term technical indicators now suggest further consolidation below $15 could trigger additional profit-taking from long positions.

Market participants are closely watching for follow-through selling after the pre-market move, with options data showing increased bearish positioning through January expiration. The selloff comes as the company prepares to report fourth-quarter results next week, with Wall Street analysts divided on whether recent operational updates will address lingering concerns about sustainable growth in its core neuromodulation segment.

The current market environment continues to be shaped by macroeconomic uncertainties and sector-specific challenges, with medical aesthetics firms facing particular scrutiny over long-term growth assumptions and regulatory risks. Investors are advised to monitor both earnings surprises and broader market sentiment shifts in the coming weeks.