Insmed (NASDAQ:INSM) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Insmed shares jumped 33.3%, opening at $128.22 versus a prior close of $99.02 and later trading around $136.46 after the earnings release.
• The company reported a quarterly loss of $0.06 per share, beating estimates for a $0.69 loss, while revenue of $425.49 million exceeded expectations of $393.74 million and rose 296.1% year over year.
• Analysts maintain a broadly positive view, with an average “Buy” rating and a consensus price target of $209.35; major institutional investors including Vanguard, State Street and RTW Investments also increased their holdings.

Shares of Insmed, Inc. (NASDAQ:INSM - Get Free Report) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $99.02, but opened at $128.22. Insmed shares last traded at $136.4560, with a volume of 2,979,095 shares traded.

The biopharmaceutical company reported ($0.06) EPS for the quarter, beating analysts' consensus estimates of ($0.69) by $0.63. The firm had revenue of $425.49 million for the quarter, compared to analysts' expectations of $393.74 million. Insmed had a negative return on equity of 130.11% and a negative net margin of 144.44%.The business's revenue for the quarter was up 296.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($1.70) EPS.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Roth Capital reissued a "buy" rating on shares of Insmed in a report on Monday, June 8th. Royal Bank Of Canada cut their price target on Insmed from $205.00 to $195.00 and set an "outperform" rating for the company in a report on Friday, June 5th. Guggenheim reiterated a "buy" rating and set a $207.00 price objective on shares of Insmed in a research note on Friday, July 10th. HC Wainwright reissued a "buy" rating and set a $220.00 price objective on shares of Insmed in a report on Monday, July 20th. Finally, JPMorgan Chase & Co. cut their target price on Insmed from $180.00 to $179.00 and set an "overweight" rating for the company in a research note on Monday, June 8th. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Insmed currently has an average rating of "Buy" and an average price target of $209.35.

Insider Activity

In other news, COO Roger Adsett sold 2,370 shares of the company's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $102.27, for a total value of $242,379.90. Following the transaction, the chief operating officer owned 98,603 shares of the company's stock, valued at approximately $10,084,128.81. This represents a 2.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Sara Bonstein sold 2,404 shares of the stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $102.27, for a total value of $245,857.08. Following the completion of the sale, the chief financial officer owned 69,082 shares in the company, valued at $7,065,016.14. This trade represents a 3.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 54,590 shares of company stock valued at $5,793,738 over the last 90 days. Company insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of INSM. Norges Bank purchased a new stake in shares of Insmed during the 4th quarter valued at $506,625,000. RTW Investments LP grew its position in Insmed by 57.0% in the fourth quarter. RTW Investments LP now owns 4,842,879 shares of the biopharmaceutical company's stock worth $842,855,000 after acquiring an additional 1,758,321 shares in the last quarter. Orbis Allan Gray Ltd bought a new position in Insmed in the second quarter valued at $153,389,000. State Street Corp increased its stake in Insmed by 30.6% in the fourth quarter. State Street Corp now owns 5,201,744 shares of the biopharmaceutical company's stock valued at $905,312,000 after acquiring an additional 1,217,390 shares during the last quarter. Finally, Vanguard Group Inc. raised its position in Insmed by 5.7% during the fourth quarter. Vanguard Group Inc. now owns 21,076,344 shares of the biopharmaceutical company's stock valued at $3,668,127,000 after purchasing an additional 1,140,524 shares in the last quarter.

Insmed Stock Up 33.3%

The company has a quick ratio of 4.10, a current ratio of 4.47 and a debt-to-equity ratio of 0.80. The stock has a 50-day simple moving average of $104.17 and a two-hundred day simple moving average of $129.42. The firm has a market cap of $28.61 billion, a PE ratio of -23.14 and a beta of 0.81.

About Insmed

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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