Exploring InMode Ltd. (INMD) Investor Profile: Who’s Buying and Why?

You're looking at InMode Ltd. (INMD) and asking the right question: with the stock price around $14.51 per share as of November 2025, who is defintely buying this medical technology stock, and what's their conviction? The direct takeaway is that institutional money, holding roughly 66% to 72% of the company, is still the dominant force, but their recent activity is a mixed signal against a backdrop of lowered expectations.

We saw the company reaffirm its full-year 2025 revenue guidance to a range of $365 million to $375 million-a number that reflects a cautious consumer environment, but still points to a profitable operation with Q3 2025 non-GAAP net income at $24.5 million. That kind of profitability, even with a market capitalization of approximately $924.75 million, is what keeps the big players interested, but you need to see who is accumulating and who is heading for the exits.

For example, the sheer volume held by giants like BlackRock, Inc., who filed for 2,460,284 shares as of September 30, 2025, shows a foundational belief in the long-term value of their minimally-invasive aesthetic solutions, but other funds have been trimming their positions; so, understanding the why behind these moves is crucial before you commit capital.

Who Invests in InMode Ltd. (INMD) and Why?

The investor base for InMode Ltd. (INMD) is dominated by large institutions, which own the majority of the shares, but the narrative is currently shaped by a tug-of-war between long-term value investors and short-term bearish bets. The core attraction remains InMode's exceptional profitability, evidenced by its Q3 2025 gross margin of 78%, even as revenue growth slows.

The Institutional Majority: Mutual Funds and Hedge Funds

Institutional investors-think mutual funds, pension funds, and major asset managers like BlackRock, Inc.-hold the lion's share of InMode Ltd. stock. As of late 2025, institutional ownership hovers around 68.04%, giving this group significant influence over the stock's price and corporate decisions. BlackRock, Inc., for example, is one of the largest shareholders, holding an estimated 8.9% of the company's shares. This is a classic sign of a stock that has passed the initial venture phase and is considered a serious, although volatile, player in the medical technology space.

Within this institutional group, you find different motivations:

• Passive Funds: Buy and hold InMode because it's included in key growth or healthcare indices.
• Active Mutual Funds: Seek long-term capital appreciation, focusing on the company's high margins and cash position.
• Hedge Funds: Engage in more dynamic, often short-term, strategies, including activist roles or short-selling.

Retail and Insider Stakes: Alignment and Influence

Individual, or retail, investors hold a meaningful but smaller piece of the pie, representing about 13% to 19% of the outstanding shares. This group often follows the lead of professional analysts, drawn to the story of minimally invasive aesthetic technology. Plus, you have the insiders-the company's executives and directors-who own a significant 15% of the stock. That's a good sign; it means management's wealth is tied directly to your own, aligning their interests with shareholders. The CEO, Moshe Mizrahy, holds approximately 5.5% of the shares outstanding. That's defintely a strong commitment.

Investment Motivations: Profitability and Value

The primary reason investors are attracted to InMode Ltd. right now is a combination of its robust financial health and its deep undervaluation in a challenging market. The company is guiding for full-year 2025 revenue between $365 million and $375 million, with non-GAAP earnings per diluted share expected to be between $1.55 and $1.59. Here's the quick math: that kind of profitability, especially with a Q3 2025 GAAP net income of $21.9 million, suggests a high-quality business model.

The key drivers for buyers are:

• High-Margin Business: The 78% gross margin is best-in-class, indicating strong pricing power and cost control.
• Cash Fortress: The balance sheet is rock-solid, with a total cash position of $532.3 million as of September 30, 2025. This cash provides a significant buffer for R&D and strategic acquisitions.
• Growth in Consumables: Revenues from consumables and services grew by 26% in Q3 2025, showing that the installed base of devices is generating recurring, high-margin revenue.

For a deeper dive into what drives the company's long-term strategy, you can review the Mission Statement, Vision, & Core Values of InMode Ltd. (INMD).

Strategies: Value, Activism, and Short-Selling

The strategies currently in play reflect the stock's recent volatility. You see three main camps:

1. Deep Value Investors (Long-Term Holders): These investors are buying because they believe the stock is trading at a significant discount to its intrinsic value. They look at the strong cash flow and the high margins, arguing that the current stock price in the mid-$14 range (as of November 2025) doesn't reflect a fair value, which some analysts peg closer to $24. They are willing to wait out the current macroeconomic softness, particularly the decline in U.S. sales, betting on a return to international growth.

2. Activist/Capital Return Investors: Driven by the massive cash pile, some institutional investors are pressuring management to return capital to shareholders. This push, notably from firms like Doma Perpetual Capital Management LLC, led to management exploring the possibility of returning 'significant additional capital by the end of 2025' through stock repurchases or a special dividend. This is a clear, actionable catalyst to unlock value.

3. Short-Term Traders (Bears): On the flip side, InMode has attracted a significant amount of short interest. The short sale ratio, which measures the proportion of trading volume related to short-selling, stood at 15.04% in November 2025. These short sellers are betting on continued revenue deceleration due to persistent consumer spending weakness in key markets, especially the U.S. They see the lowered 2025 revenue guidance as a sign of structural weakness, not just a cyclical dip. That's a high number, so expect volatility as these two opposing forces battle it out.

Institutional Ownership and Major Shareholders of InMode Ltd. (INMD)

You're looking to understand the 'smart money' in InMode Ltd. (INMD), and that's a smart move. The institutional investor profile tells you a lot about a stock's stability and risk. As of the third quarter of 2025, institutional investors-the mutual funds, pension funds, and major asset managers-collectively own a significant portion of the company, giving them a powerful voice in its direction.

The latest 13F filings from September 30, 2025, show that institutional ownership sits at about 52.09% of the total shares outstanding. That translates to roughly 36,231,275 shares held by 255 different institutions. This level of ownership means the stock is defintely sensitive to their collective trading actions, which is a key risk to monitor. For a deeper dive into the company's background, you can check out InMode Ltd. (INMD): History, Ownership, Mission, How It Works & Makes Money.

Top Institutional Investors and Their Holdings

When you look at who holds the biggest stakes, you see a mix of well-known names and specialized funds. These are the players with the capital to move the needle. The top institutional holders, based on their Q3 2025 filings, are led by Doma Perpetual Capital Management Llc, Blackrock, Inc., and Renaissance Technologies Llc.

Here's the quick math on the largest positions, showing their influence in dollar terms (based on Q3-end valuations):

It's important to note that Acadian Asset Management Llc had an explosive increase, boosting its position by nearly 500% in the quarter. That's a strong vote of confidence, but it's just one data point.

Recent Shifts: Are Institutions Buying or Selling?

The near-term trend is mixed, but the selling pressure slightly outweighed the buying in the last reporting period. Overall, institutional investors reported 137 decreased positions, totaling 9,943,221 shares sold, versus 84 increased positions, which added up to 9,305,004 shares bought. So, more institutions were trimming their stakes than adding, but the net change in shares was relatively balanced.

• Major sellers included Meitav Investment House Ltd., which cut its stake by over 26%.
• New, large positions were established by Cooper Creek Partners Management Llc (1,005,362 shares) and Ancient Art, L.P. (956,630 shares).
• The overall institutional shares (Long) actually dropped by over 24% in the most recent reported quarter, indicating a significant rotation or reduction in exposure by the institutional base.

The Impact of Institutional Trading on InMode Ltd.

Institutional investors don't just hold shares; they shape the company's trajectory and the stock's volatility. With institutions owning a majority stake, they have a strong influence on board decisions, especially when their interests align.

Their trading actions create significant stock price sensitivity. When a large institutional block sells, the stock price can drop sharply, disproportionately affecting individual investors. For example, when the market capitalization recently fell by a reported US$65 million, institutional investors, given their large exposure, endured the highest losses. This is why they are often referred to as 'smart money'-they are highly exposed to both the upside and the downside. Their high ownership means they are demanding performance, and if the downtrend continues, they may be forced to sell, creating a negative feedback loop for the stock.

Key Investors and Their Impact on InMode Ltd. (INMD)

You're looking at InMode Ltd. (INMD) and trying to figure out who's really calling the shots, which is smart. The short answer is that institutional money holds the majority stake, but the stock's direction is defintely sensitive to a handful of large funds and, crucially, the company's founders.

Institutional investors-the big funds, pension plans, and endowments-own a significant chunk of the company, controlling up to an estimated 72% of the shares outstanding as of mid-2025. This means that while no single investor has a majority, their collective actions can strongly influence board decisions and stock price movements. This high concentration is a double-edged sword: it lends credibility, but it also means the stock is vulnerable to a 'crowded trade' if a few major players decide to sell simultaneously.

The Heavyweights: BlackRock, Activism, and Insider Control

When you look under the hood, a few names stand out. BlackRock, Inc., for example, is one of the largest institutional shareholders, which isn't surprising given their scale. As of the Q3 2025 SEC filings (September 30, 2025), they held approximately 2,460,284 shares. Other major players include Renaissance Technologies Llc and Millennium Management Llc, both known for their quantitative and systematic trading strategies.

But the real power dynamic here is the strong insider ownership. CEO Moshe Mizrahy and Chief Technology Officer Dr. Michael Kreindel are major shareholders, with the CEO holding up to 5.5% of the shares outstanding. Insiders collectively own around 15% of InMode Ltd. (INMD), which is a high percentage for a publicly traded company. This alignment is generally a positive signal, showing management has skin in the game, but it also concentrates power, meaning the founders' vision often dictates the company's strategic path.

• BlackRock, Inc.: Largest institutional holder.
• Insiders: Own ~15%, ensuring management alignment.
• Doma Perpetual Capital: Recent activist push for capital return.

Activist Pressure and Recent Trading Moves

The institutional landscape isn't static; it's reacting to the company's recent performance. InMode Ltd. (INMD) had a tough year, with the stock price declining by over 24% between November 2024 and November 2025. This performance has definitely spurred some action.

A notable recent move came from Doma Perpetual Capital Management LLC, an institutional holder, who sent a public letter in September 2025 urging the Board of Directors to return capital to shareholders. This is a clear-cut example of investor influence-an activist investor publicly pushing for a change in capital allocation strategy, likely a share buyback or dividend, to boost shareholder value amidst the downturn. You can see how this aligns with the company's core values by reviewing their Mission Statement, Vision, & Core Values of InMode Ltd. (INMD).

Here's the quick math on why this matters: InMode Ltd. (INMD) reiterated its full-year 2025 revenue guidance to a range of $365 million to $375 million, down from earlier projections, and reported Q3 2025 non-GAAP net income of $24.5 million. When growth slows, investors demand better capital efficiency. That's the activist playbook.

What this table hides is a mixed signal: while some large funds like Doma Perpetual Capital Management LLC and BlackRock, Inc. were adding to their positions in Q3 2025, suggesting they see a long-term value opportunity, other systematic funds like Voloridge Investment Management LLC were sharply reducing their stake by 17.2% as recently as November 2025. This tells you the smart money is split on the near-term outlook. Your action is to track the outcome of the activist push; if the company announces a capital return program, it could be a significant catalyst.

Market Impact and Investor Sentiment

If you're looking at InMode Ltd. (INMD), the current investor profile is a fascinating mix of cautious institutional money and an activist shareholder pushing for aggressive capital return. The direct takeaway is that while Wall Street analysts are largely sitting on the fence with a Hold rating, the company's strong balance sheet-specifically its $532.3 million in cash and no debt as of September 30, 2025-is what's driving the action from its largest owners.

Institutional investors, often called the 'smart money,' hold the biggest piece of the pie, owning approximately 60.35% of the company's shares as of November 2025. This high concentration means the stock price is acutely sensitive to their trading decisions, and their sentiment is currently mixed. They've endured a rough patch, with the stock price declining by 24.66% from November 2024 to November 2025. When a stock drops, institutions feel the pressure to act.

Who's Buying: The Major Shareholders

The roster of top institutional holders is a who's who of global finance, including firms like BlackRock, Inc. and Renaissance Technologies LLC. The largest institutional holder is BlackRock, Inc., which reported holding 2,460,284 shares as of September 30, 2025. But the most vocal player is DOMA Perpetual Capital Management LLC, an activist investor who has been pushing the Board of Directors hard to address the perceived undervaluation.

Their move is a clear signal: they believe the company is generating more cash than it can effectively reinvest for growth right now. This is why DOMA Perpetual is urging the Board to execute a significant share buyback, specifically asking for a 10% buyback in Q4 2025 and another 10% in Q1 2026. That's a huge commitment to returning capital to shareholders.

• BlackRock, Inc.: Top institutional holder.
• DOMA Perpetual Capital Management LLC: Activist pushing for buybacks.
• Insiders: Maintain a Neutral sentiment, showing no strong consensus.

Recent Market Reactions and Analyst Perspectives

The market's reaction to recent financial news has been volatile, reflecting the uncertainty. In July 2025, the stock faced a headwind when InMode Ltd. revised its full-year 2025 revenue guidance down to a range of $365 million to $375 million, a reduction from the prior guidance of $395 million to $405 million, citing market weakness and U.S. economic uncertainty. This kind of guidance cut definitely hurts investor confidence.

Still, the company delivered a beat in its Q3 2025 earnings released on November 5, 2025. It reported non-GAAP Earnings Per Share (EPS) of $0.38, which topped the consensus estimate of $0.32. That's a clean one-liner that shows the underlying profitability is still strong. Analysts are now forecasting the company's EPS for the full fiscal year 2025 to be in the range of $1.75 to $1.82 per share.

Here's the quick math on the activist's view: the company's market capitalization is relatively low compared to its massive cash pile. When you strip out that $532.3 million cash reserve, the company is trading at a very low multiple of its future free cash flow, which is why DOMA Perpetual is so aggressive. Their presence is a near-term opportunity for you, as their pressure can force management to take actions that boost the stock price, like the requested buybacks. To understand how the company got here, you can review its strategic journey at InMode Ltd. (INMD): History, Ownership, Mission, How It Works & Makes Money.

The consensus rating from the four analysts covering the stock as of mid-November 2025 is a Hold, with 75% of them recommending that stance. They are waiting for a clear catalyst-either sustained revenue growth or a concrete capital allocation plan-before upgrading their ratings. The activist push is defintely the most important catalyst right now.