Activist Push for Dual Buybacks Might Change The Case For Investing In InMode (INMD)

• On September 9, 2025, DOMA Perpetual Capital Management LLC urged InMode Ltd.'s Board to authorize two 10% share buybacks in late 2025 and early 2026, citing excess cash and the need to prioritize shareholder interests.
• This activist letter also criticized management's leadership and called for improved corporate governance, highlighting DOMA's concerns about capital allocation discipline at InMode.
• We'll explore how DOMA's push for major buybacks could reshape InMode’s investment narrative and spotlight its approach to capital allocation.

We've found 18 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

InMode Investment Narrative Recap

To own InMode stock, investors need to believe in the company’s ability to drive growth and margins through expanding into new markets and innovating in minimally invasive medical aesthetics. The latest push from DOMA Perpetual Capital Management for sizable share buybacks brings capital allocation into sharp focus but has limited immediate impact on the main short-term catalyst: stabilizing sales momentum amid cautious consumer discretionary spending. The greatest risk for shareholders remains ongoing macroeconomic uncertainty affecting equipment demand.

Among recent announcements, InMode’s July 2025 lowered revenue guidance stands out, as it directly relates to ongoing concerns about demand trends and reflects the business challenges intensified by cautious spending. This development ties back to the catalyst of international expansion and product innovations, which may be essential for reigniting top-line growth as investors weigh the impact of near-term sales volatility.

However, what is less discussed is the possible long-term effect if regulatory hurdles continue to delay access to new markets and products...

Read the full narrative on InMode (it's free!)

InMode's narrative projects $409.0 million revenue and $94.2 million earnings by 2028. This requires a -0.6% yearly revenue decline and a $84.5 million decrease in earnings from $178.7 million.

Uncover how InMode's forecasts yield a $16.25 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Six individual fair value estimates from the Simply Wall St Community range from US$15.73 to US$26.74 per share, reflecting widespread disagreement about InMode’s outlook. With demand softness and margin risks currently in focus, you can explore alternative takes on the company’s fair value and future.

Explore 6 other fair value estimates on InMode - why the stock might be worth just $15.73!

Build Your Own InMode Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your InMode research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free InMode research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate InMode's overall financial health at a glance.

Contemplating Other Strategies?

The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

• Rare earth metals are the new gold rush. Find out which 28 stocks are leading the charge.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com