Insmed, Inc. (NASDAQ:INSM) Short Interest Update

Key Points

• Short interest jumped 37.0% in March to 13,756,534 shares (about 6.6% of shares sold short), producing a days-to-cover ratio of 4.7.
• Insiders have been selling recently — including the CEO and CFO — with 179,777 shares sold over the last quarter (≈$28.4 million), leaving insiders with 2.10% ownership; the CEO’s April sale was executed under a 10b5‑1 plan.
• Despite an EPS miss and negative margins, analysts are broadly positive, assigning a consensus Buy rating and a mean price target of $212.82, well above the current ~$146.74 trading level.

Insmed, Inc. (NASDAQ:INSM - Get Free Report) saw a large increase in short interest in the month of March. As of March 31st, there was short interest totaling 13,756,534 shares, an increase of 37.0% from the March 15th total of 10,037,946 shares. Approximately 6.6% of the shares of the company are sold short. Based on an average daily volume of 2,950,831 shares, the days-to-cover ratio is presently 4.7 days.

Insmed Stock Performance

Shares of INSM traded down $6.66 during midday trading on Wednesday, reaching $146.74. 2,228,362 shares of the stock were exchanged, compared to its average volume of 2,501,321. The stock's 50 day simple moving average is $150.23 and its 200 day simple moving average is $167.46. The company has a market cap of $31.67 billion, a P/E ratio of -22.89 and a beta of 1.10. Insmed has a twelve month low of $63.81 and a twelve month high of $212.75. The company has a quick ratio of 3.54, a current ratio of 3.83 and a debt-to-equity ratio of 0.76.

Insmed (NASDAQ:INSM - Get Free Report) last released its quarterly earnings results on Thursday, February 19th. The biopharmaceutical company reported ($1.54) EPS for the quarter, missing the consensus estimate of ($1.07) by ($0.47). Insmed had a negative net margin of 210.54% and a negative return on equity of 168.36%. The business had revenue of $263.84 million during the quarter, compared to analyst estimates of $263.97 million. During the same quarter last year, the company posted ($1.32) earnings per share. The company's revenue was up 152.6% on a year-over-year basis. On average, sell-side analysts expect that Insmed will post -4.56 earnings per share for the current year.

Insider Activity

In other news, CFO Sara Bonstein sold 748 shares of the firm's stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $156.34, for a total value of $116,942.32. Following the completion of the sale, the chief financial officer directly owned 79,758 shares of the company's stock, valued at $12,469,365.72. This trade represents a 0.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO William Lewis sold 10,699 shares of Insmed stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $163.22, for a total value of $1,746,290.78. Following the transaction, the chief executive officer owned 301,185 shares of the company's stock, valued at $49,159,415.70. This represents a 3.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 179,777 shares of company stock valued at $28,412,777. Company insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Insmed

A number of hedge funds have recently added to or reduced their stakes in the stock. CIBC Private Wealth Group LLC increased its position in shares of Insmed by 42.1% in the third quarter. CIBC Private Wealth Group LLC now owns 179 shares of the biopharmaceutical company's stock worth $26,000 after purchasing an additional 53 shares during the period. CoreCap Advisors LLC bought a new position in Insmed in the 4th quarter valued at about $27,000. Stone House Investment Management LLC acquired a new position in shares of Insmed in the 3rd quarter valued at approximately $29,000. SBI Securities Co. Ltd. lifted its holdings in shares of Insmed by 404.9% during the 3rd quarter. SBI Securities Co. Ltd. now owns 207 shares of the biopharmaceutical company's stock worth $30,000 after acquiring an additional 166 shares during the period. Finally, GraniteShares Advisors LLC bought a new stake in shares of Insmed during the 4th quarter worth approximately $30,000.

Wall Street Analysts Forecast Growth

INSM has been the subject of several research reports. Raymond James Financial initiated coverage on Insmed in a report on Friday, April 10th. They set an "outperform" rating and a $200.00 price target for the company. Mizuho increased their price objective on shares of Insmed from $204.00 to $206.00 and gave the company an "outperform" rating in a research report on Wednesday, March 25th. Truist Financial set a $205.00 target price on shares of Insmed in a research note on Monday, January 12th. Stifel Nicolaus lifted their target price on shares of Insmed from $205.00 to $208.00 and gave the stock a "buy" rating in a report on Tuesday, March 24th. Finally, Bank of America upped their price target on shares of Insmed from $211.00 to $213.00 and gave the company a "buy" rating in a research note on Tuesday, March 24th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus price target of $212.82.

Insmed Company Profile

Insmed Incorporated is a biopharmaceutical company focused on developing and commercializing therapies for patients with rare and serious diseases, with a particular emphasis on difficult-to-treat pulmonary infections. Headquartered in Bridgewater, New Jersey, the company concentrates its research and development efforts on targeted drug delivery technologies and novel formulations intended to improve clinical outcomes for patients who have limited treatment options.

The company's principal marketed product is ARIKAYCE (amikacin liposome inhalation suspension), an inhaled liposomal formulation of the antibiotic amikacin that is approved by the U.S.

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