Insmed Sees Unusually Large Options Volume (NASDAQ:INSM)

Key Points

• Insmed options activity surged: Investors purchased 17,155 call options, 469% above the typical volume of 3,017. The stock jumped 32.9% to $131.57 during Thursday trading on above-average volume.
• Quarterly results exceeded expectations: Insmed reported an adjusted loss of $0.06 per share versus the $0.69 consensus estimate, while revenue reached $425.49 million and grew 296.1% year over year.
• Analysts remain broadly bullish: The company has a consensus “Buy” rating and a $209.35 average price target, despite several firms recently lowering their targets. Institutional investors also increased their positions, while insiders sold shares primarily through tax-related or pre-arranged transactions.

Insmed, Inc. (NASDAQ:INSM - Get Free Report) was the recipient of unusually large options trading activity on Thursday. Stock investors purchased 17,155 call options on the company. This represents an increase of 469% compared to the typical volume of 3,017 call options.

Insmed Stock Up 32.9%

INSM traded up $32.55 during trading on Thursday, reaching $131.57. 5,726,753 shares of the stock traded hands, compared to its average volume of 3,066,464. The stock's 50-day simple moving average is $104.17 and its two-hundred day simple moving average is $129.42. The company has a debt-to-equity ratio of 0.80, a current ratio of 4.47 and a quick ratio of 4.10. Insmed has a fifty-two week low of $90.39 and a fifty-two week high of $212.75. The stock has a market cap of $28.52 billion, a price-to-earnings ratio of -22.71 and a beta of 0.81.

Insmed (NASDAQ:INSM - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.06) earnings per share for the quarter, topping analysts' consensus estimates of ($0.69) by $0.63. The company had revenue of $425.49 million during the quarter, compared to the consensus estimate 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 quarterly revenue was up 296.1% on a year-over-year basis. During the same period last year, the business earned ($1.70) EPS. As a group, equities research analysts expect that Insmed will post -2.43 EPS for the current year.

Insider Activity

In other news, COO Roger Adsett sold 2,370 shares of the business's stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $102.27, for a total transaction of $242,379.90. Following the sale, the chief operating officer directly owned 98,603 shares in the company, valued at approximately $10,084,128.81. The trade was a 2.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Michael Alexander Smith sold 1,806 shares of the company's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $95.82, for a total value of $173,050.92. Following the completion of the sale, the insider owned 37,648 shares in the company, valued at $3,607,431.36. This trade represents a 4.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 54,590 shares of company stock valued at $5,793,738 in the last quarter. 2.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of INSM. Vanguard Group Inc. boosted its holdings in Insmed by 5.7% in the fourth quarter. Vanguard Group Inc. now owns 21,076,344 shares of the biopharmaceutical company's stock worth $3,668,127,000 after purchasing an additional 1,140,524 shares in the last quarter. Darwin Global Management Ltd. increased its holdings in shares of Insmed by 2.3% during the 4th quarter. Darwin Global Management Ltd. now owns 20,933,277 shares of the biopharmaceutical company's stock valued at $3,644,274,000 after acquiring an additional 475,832 shares during the last quarter. State Street Corp boosted its position in Insmed by 30.6% during the fourth quarter. State Street Corp now owns 5,201,744 shares of the biopharmaceutical company's stock worth $905,312,000 after purchasing an additional 1,217,390 shares during the period. RTW Investments LP grew its holdings in Insmed by 57.0% during the fourth quarter. RTW Investments LP now owns 4,842,879 shares of the biopharmaceutical company's stock valued at $842,855,000 after purchasing an additional 1,758,321 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake in shares of Insmed by 14.4% in the fourth quarter. Geode Capital Management LLC now owns 4,299,052 shares of the biopharmaceutical company's stock worth $751,936,000 after buying an additional 539,625 shares during the last quarter.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Truist Financial reduced their target price on shares of Insmed from $205.00 to $185.00 and set a "buy" rating for the company in a research report on Wednesday, May 13th. Weiss Ratings reissued a "sell (d-)" rating on shares of Insmed in a report on Friday, July 17th. JPMorgan Chase & Co. cut their price target on shares of Insmed from $180.00 to $179.00 and set an "overweight" rating on the stock in a report on Monday, June 8th. Royal Bank Of Canada lowered their target price on Insmed from $205.00 to $195.00 and set an "outperform" rating for the company in a research report on Friday, June 5th. Finally, Raymond James Financial initiated coverage on Insmed in a research report on Friday, April 10th. They set an "outperform" rating and a $200.00 price objective for the company. Two investment analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Insmed currently has a consensus rating of "Buy" and a consensus target price of $209.35.

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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